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HomeMy WebLinkAboutNorthwest Inupiat Housing Authority Solar Hot Water App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 16 9/2/2008 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 2 of 16 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Northwest Inupiat Housing Authority Type of Entity: Regional Housing Authority Mailing Address P.O. Box 331 Kotzebue, AK 99752 Physical Address 1001 Turf Street Telephone 442-3450 Fax 442-3486 Email gadams@NIHA.com 1.1 APPLICANT POINT OF CONTACT Name Guy Adams Title Executive Director Mailing Address P.O. Box 331 Kotzebue, AK 99752 Telephone 442-3450 Fax 442-3486 Email gadams@NIHA.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, or A local government, or X 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 3 of 16 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. Feasibility Analysis/Conceptual Design; Final Design and Permitting/Construction for solar hot water heating systems on residential, as well as commercial and public buildings. All of these water heating systems would be new projects that were not in operation on August 20, 2008. 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. Rising energy prices and demand for renewable systems could create demand for solar for hot water heating throughout the nation- even in the Arctic. Solar is often dismissed as a non-starter in the Arctic- it should not be. Some of the world’s most successful sol ar projects have been in places where the solar fraction is about 50%. By strategically targeting entities and institutions with solar technology, this could be an effective demand-side management option. This project focuses on the installation of solar hot water heaters on residential, commercial, and public buildings in the Northwest Arctic Borough. If the technology proves to be econ omically feasible, the eventual goal would be to install many solar water heaters on buildings and residences throughout the region. Before solar water heaters are installed on many buildings throughout the region, a solar hot water heating demonstration project would be installed as a test case. Presumably, this demonstration solar water heater would be installed on commercial and housing interests where the NIHA has a strategic influence, in Kotzebue or the surrounding communities. Key partners in the project include NANA Pacific/NANA Regional Corporation, the Northwest Arctic Borough School District and additional engineering and building maintenance consultants. It is the team’s desire to develop monitoring and evaluation parameters that can prove/disprove the technology in an Arctic setting. The strategic objectives of this project are as follows:  SO1: Develop monitoring and evaluation criteria and test methodology to evaluate the effectiveness of solar thermal hot water heating in the Arctic;  SO2: Identify up to 5 commercial entities and 25 residential entities that are viable candidates for a solar hot water heating program in the NW Arctic/NANA Region;  SO3: Design, procure, and install an appropriate solar hot water heating system;  SO4: Evaluate the effectiveness of solar thermal hot water heating in NW Alaska. 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. The budget is estimated to be $996,000 for the proposed scope of work.  Resource Assessment Phase.  Demonstration Project.  Design, Procurement, and Installation.  O&M, Training, Evaluation and Close-Out. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 16 9/3/2008 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. The main economic benefit of solar hot water heating will be displacement of fuel oil. Other Benefits to the Alaskan Public: The anticipated benefits of this program are many; primary among these are meeting NANA’s long-term tribal energy vision and reducing the negative impact of the cost of energy on the NANA Region by providing a renewable energy alternative. This solar hot water project could help stabilize energy costs and provide long-term socio-economic benefits to village households. Locally produced, affordable energy will empower community residents and could help avert rural to urban migration. This project would have many environmental benefits resulting from a reduction of hydrocarbon use. These benefits include:  Reduced potential for fuel spills or contamination during transport, storage, or use (thus protecting vital water and subsistence food sources)  Improved air quality  Decreased contribution to global climate change from fossil fuel use 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.) $ 996,000 2.5.2 Grant Funds Requested in this application. $ 986,000 2.5.3 Other Funds to be provided (Project match) $ 10.000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 986,000 2.5.5 Estimated Benefit (Savings) To be determined 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.) To be determined, based on avoided fuel costs SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The Northwest Inupiaq Housing Authority (NIHA), the lead applicant, will provide overall project management and oversight. NIHA is the regional housing authority serving the Upper Kobuk communities NANA Pacific will serve as the prime contractor and will be responsible for coordination of all activities, developing and managing sub-contracts, providing technical assistance, and all project management. A subsidiary of NANA Regional Corporation, NANA Pacific is a project management, engineering, and consulting company, with a specialty in energy. NANA Pacific provides energy-related services, including energy planning, bulk fuel conceptual design, power distribution/design, wind resource assessments, financial and economic modeling, diesel power generation/distribution, rural infrastructure development, and facilitation. NANA Pacific’s project/program management projects are handled by professionals with industry experience in construction, engineering, consulting, and development. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 16 9/3/2008 Guy Adams, Project Manager, Northwest Inupiat Housing Authority: On this project, Guy will serve as the Project Manager performing all management functions including: contract oversight, financial accounting, communication meetings and project schedule. Mr. Adams has been the Executive Director of NIHA since 2001. There, he supervises approximately 100 employees throughout the NANA region and provides day-to-day management of a five million dollar annual budget. He will be assisted by financial support staff. Prior to becoming director of NIHA, Guy was a planner with NIHA where he assembled, wrote and submitted Annual Indian Housing Plan grants, completed annual performance reports and assisted with management of federal budgets. (Full resume and references attached)  Jay Hermanson, Project Manager, NANA Pacific: Jay Hermanson will serve as the Project Manager, performing all management functions for the project. Mr. Hermanson has managed multiple renewable energy studies in Alaska and elsewhere, and holds an MBA from the University of Alaska Anchorage.  Brian Yanity, Project Engineer, NANA Pacific: Technical expertise will be provided by Brian Yanity, who will serve as the Project Engineer; he holds a BS in Electrical Engineering from Columbia University and an MS in Arctic Engineering from the University of Alaska Anchorage. He will work with NIHA to provide overall project management and oversight.  Ed Carlson, Building Engineer, WHPacific Incorporated: Ed Carlson is a licensed professional engineer in the state of Alaska and the Director of the Building Engineering Group at WHPacific. He holds a BA in chemistry and a BS in electrical engineering from the University of Colorado. Ed will provide Electrical Engineering services for this project. His staff is also available to provide Mechanical and Structural Engineering services as needed.  Richard Seifert. Energy & Housing Specialist, University of Alaska Fairbanks, Cooperative Extension. Mr. Seifert is a recognized leader and expert on housing and energy issues in Alaska, providing extension services throughout the state. He was a publisher for “Solar Design Manual for Alaska.” He will be providing technical services on the proposed scope of work and will be the project’s evaluator/PI. 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.) Project will be initiated immediately after notification of a positive response to this application. A table is attached with a schedule of tasks and times (see timeline below). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 16 9/3/2008 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Key tasks and decision points are described below. The anticipated quarter for completion of each step is noted in brackets following the description and is included in the Project Schedule in part 3.2 above.  Resource Assessment Phase. Project Start-Up and Additional Data Collection: Upon notice to proceed, the technical team will have a kick-off meeting with project stakeholders. Central to this step is the development of a detailed work breakdown structure that clearly delineates roles and responsibilities. (Q1 2010)  Development of Solar Hot Water Heating Evaluation. This step will include the development of an evaluation framework that can clearly evaluate the effectiveness of Solar Hot Water Heating in the Arctic. Mr. Rich Seifert will coordinate this step. (Q1 2010)  Solar radiation measurement and solar resource assessment: A pyranometer would be installed at one or more locations to measure the solar radiation intensity. A solar thermal energy resource report and a conceptual design report for a solar hot water demonstration project will be completed. (Q2, 2010)  Design, Procurement, and Installation. Solar hot water demonstration project: A demonstration solar hot water system will be installed on the NIHA headquarters building in Kotzebue, or similar location or a public or commercial building. (Q2, 2010) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 16 9/3/2008  Solar hot water system design and feasibility assessment for residential, commercial and public buildings in the NW Arctic Borough: Different solar hot water systems will be evaluated and which products or technologies would be most appropriate for Northwest Alaska will be determined. Design reports and installation plans will be prepared. [Q3, 2010]  Solar hot water system installations for residential, commercial and public buildings: If the results of the solar hot water demonstration project are successful. [Q4, 2010]  Solar hot water system operations and maintenance planning, and training activities: Development of an operation and maintenance plan for solar hot water systems in the region. Solar water heater installation training. Technical Analysis Evaluation of the Hot Water Solar Heating Program. The last step will be the technical evaluation involved with deployment of this technology. Mr. Seifert will lead this step and provide the needed technical support. [Q4, 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. NIHA will work with NANA Pacific on all aspects of this project. NIHA will provide a Project Manager to be the primary contact for NANA Pacific. NANA Pacific will use its own staff, including a project manager and a project engineer as well as subcontract with a var iety of consultants to implement this project. Some of the tasks for which we will identify and utilize subcontractors include the following: solar resource assessment, hot water system design and installation, and O&M planning and training. The maintenance staff of NIHA, the Northwest Arctic Borough School District, and other regional entities will participate. Selection Process for Contractors: To select the contractors and consultants, the technical team will go through a rigorous scoping process to adequately define the technical aspects of this proposal. Various stakeholders will have the opportunity to develop and comment on the scoping document. The goal is to have the most promising contractor, engineering expertise, technology and existing best practices employed in the design and installation. The resultant scoping document will be the basis for selection of subcontractors. Contractors and Consultants will be based upon their technical competencies, past performance, the quality of their written proposal, cost, and general consensus from the technical steering committee. The selection of contractors and consultants will occur in strict conformity with corporate procurement policies, conformance with OMB circulars, and DCAA principles. NIHA’s procurement policies will be used and can be made available upon request. Potential Subcontractors: NIHA and NANA Pacific have been in contact with WH Pacific, and UAF-Cooperative Extension solar heating expert Prof. Richard Seifert. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Mr. Adams and other team members will conduct regular (weekly or bi-weekly) teleconferences to ensure the project’s goals are being met. NANA, Maniilaq, AEA, Tribal and City staff will be invited to attend all meetings. Telephone, fax and e-mail will provide the basic day-to-day communication among the project team and with AEA; accurate meeting minutes will be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 16 9/3/2008 maintained. A weekly abbreviated status report in addition to quarterly reports will be provided to keep AEA informed on the projects status. Community outreach is vital to a successful outcome. NIHA will work with Maniilaq to create a public involvement plan early in the process that will include numerous opportunities for public involvement. Examples of possible techniques that may be outlined in the Public Involvement Plan include brochures or newsletters at key points during the project, public meetings, Council meetings, presentations at regional energy conferences such as the Alaska Federation of Natives Convention and the Department of Energy’s Tribal Conference, and articles in NANA’s newsletter. 3.6 Project Risk Discuss potential problems and how you would address them. The risks associated with this phase of the project are minimal, and manageable. Maintaining basic contract oversight through technical implementers such as quarterly reports and monthly updates will be sufficient to monitor project progress. Key risks for installation of solar hot water systems will be analyzed in the feasibility and business model; solutions and mitigation of risks will also be addressed. In the proposed scenario, NIHA is responsible for all aspects of implementation. This ownership scenario of the procured equipment could create long-term ownership liabilities and the associated risk with ownership. 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 direct use of solar energy in the Northwest Arctic Borough is always going to be a supplemental energy source. The problem with using solar energy directly at such high latitude is that it is inconsistent, and is generally out of phase with space heating loads. From mid- November until the end of January, almost no solar radiation is available in Northwest Alaska, while the need for heating during this period is the highest of the year. On average, the daily solar radiation flux for Northwest Alaska ranges between 2 to 3 kWh/sq. meter. For solar space heating, the most economic time of year in Northwest Alaska would be around the equinoxes of September and March. These are times of year when there are 12 hours of daylight per day, and the average air temperature in Northwest Alaska is cold enough to Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 16 9/3/2008 justify space heating. Solar hot water heating could be practical in Northwest Alaska for up to nine months of the year. About 50% of annual hot water heating needs in Kotzebue could be met by solar. Solar photovoltaic (PV) power generation also could be practical during late spring and summer, and is being studied for applications in Northwest Alaska by the Alaska Village Electric Cooperative. Solar thermal power generation (using steam turbines) is not likely to be practical in Northwest Alaska. For mounting solar collector panels, a vertical panel surface (a 90° angle from the ground) would be best in Northern Alaska. Such a vertical mounting mitigates the accumulation of snow or ice. South-facing walls on existing buildings can be adapted for this purpose. For a concurrent study completed by AVEC entitled “Solar Energy Feasibility Study” for the community of Ambler, AVEC found a $28,000 annual cost savings for PV array for power generation, a 5% IRR for a 20-year project, and a simple payback of 22 years. 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. All commercial buildings including schools, clinics, city buildings, and water plants use oil as the primary energy for heating. Homes within each village currently use Weil-McClain boilers and monitors; many residential boilers are outdated and inefficient. The hot water heaters in the buildings of the Northwest Arctic Borough School District are part of a heating plant, which is separated from the main building. An example of this is the Kotzebue school, where water is heated indirectly with hot glycol from a boiler module, which also provides space heating. The boiler water heats the school’s 2 huge plate and frame heat exchangers where the school’s glycol/water-heating medium is heated. Hot glycol is then circulated through a plate type heat exchanger (for 115 degree water) and an Amtrol hot water maker for 140- degree hot water. During the warmest months of the school year, the school must run a boiler to make hot water. One boiler contains 385 gallons of water, the piping that connects it with the plate and frame heat exchangers contains approximately 200 gallons. Thus there are times when the school does not need space heating, but does need hot water. 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. Fuel oil is the primary source of heating for commercial buildings, for both water and space heating. Households in the region may be heated with a combination of heating oil and locally gathered wood, although oil is the dominant heat source. Fuel oil prices depend on whether a barge has been able to reach the villages. Last year, oil prices were as high as $9.00 per gallon when fuel had to be flown into several of the region’s villages. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. For the purposes of this discussion, the focus will be on hot water solar heating only. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 16 9/3/2008 In NW Alaska/NANA Region, there are primarily two market levels in each village, the household market and the commercial/public buildings market. The residential unit can be described as a 700 sq ft facility that could house multiple generations. A wide range of people live in these facilities, ranging from 6-8 people. The residential unit uses up to 1000 gallons of home heating fuel per year. We are assuming that the average household spends about $5,000/year on home heating oil to heat their home- or approximately 10% of median household income. A commercial building is assumed to be >4,000 sq feet and uses about 3000 gallons heating fuel per year. A commercial building could be a school, city council office, clinic or hospital. We have also assumed that the marketplace is open to new innovations and technologies and is willing to incorporate new technologies into their lives. 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 most common type of active solar heat collector is the flat-plate solar collector, which absorbs solar heat directly with a dark, flat surface. Behind this flat absorber surface are copper tubes which carry a working fluid, typically either water or an antifreeze solution. The working fluid’s antifreeze for cold climates is commonly glycol propylene. Vacuum tube collectors consist of an array of tubes connected together to form a collector field. Within each vacuum tube is a pipe carrying the working fluid, which absorbs the solar heat energy. The evacuated vacuum tube which surrounds the heat absorbing pipe minimizes heat loss. Solar thermal energy, in the form of hot water, is relatively easy to store, and a variety of hot water storage solutions exists. A typical solar hot water system feeds hot fluid from a solar collector to a heat exchanger, which in turn heats cold tap water in a well-insulated storage tank. Active solar hot water heating is the type of solar thermal energy most practical in Northwest Alaska. In contrast to space heating, hot water is consistently needed year-round. However, the pipes carrying working fluid through the solar collector could have problems with freezing during the coldest nights in winter. Wind-blown debris is another risk to solar thermal collectors. For water heating, it is important that the solar heating system integrate well with existing water heaters. In this case, oil-fired water heaters constitute the existing system, and hybrid oil-solar combinations should be not be difficult to implement. Another possible combination is solar hot water heating combined with electric water heating, particularly during the summer when oil-fired heating plants on large buildings are not in operation. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 16 9/3/2008 Solar hot water systems tend to be more practical with larger buildings such as schools. District and block heating applications with hot water may be possible in Northwest Alaska communities. For new home construction of buildings by NIHA and other entities, there are opportunities for passive solar building design, greenhouses., and solar space heating. For temporary applications in the NANA region such as hunting or fishing camps, solar water heating have be achieved with “plastic bag”-type solar heaters. The simple type of solar collectors are like those found on outdoor swimming pools, consisting of a transparent or black plastic/rubber sheet, or bag, through which the water is passively heated. We have assumed that the proposed system can displace 30% of the hot water needs of a family or institution. References: Richard Seifert, A Solar Design Manual for Alaska: Third Edition, University of Alaska Fairbanks Cooperative Extension Service, August 2005. 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. No new land needs to be acquired for this project, as the solar hot water installations will occur on existing buildings. The proposed systems will only be installed on buildings with clear and demonstrable approval and support from the building owner. Selection criteria will be developed to select program participants. 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 It is likely the only permit needed for installation solar hot water systems is a building permit issued by the NW Arctic Borough or other appropriate entity. Approval by the building owner will also be required. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 16 9/3/2008 Compared to other energy sources, solar hot water heating has a negligible environmental impact. To be installed on existing buildings, no new building construction or land clearing is needed. One issue of concern is visual and aesthetic impacts- as these solar collectors will be mounted vertically on the structures. These impacts will be part of the consumer education program associated with this program, which educates community members on the benefits of solar hot water heating. 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 Total Anticipated Cost.  Resource Assessment Phase. The resource assessment phase includes the monitoring and evaluation plan and actual data collection. This is estimated to be $46,000. This is based upon an independent estimate.  Demonstration Project. The demonstration project will include a model project in Kotzebue, Alaska designed to showcase the technology in an Arctic Environment. The demonstration project is estimated to be $55,000.  Design, Procurement, and Installation. The effort to deploy the technology in those regional communities is next. This step will entail design, procurement and installation. This is estimated to be $857,000.  O&M, Training, Evaluation and Close-Out. The final step is the close-out stage. This step is estimated to be $68,000. Requested Grant Funding. NIHA is requesting a total of $966,000 in grant funding. Applicant Match Funding. NIHA will provide $10,000 in in-kind support. Identification of Other Funding Sources. There are a variety of other entities to consider for additional funding, including Department of Energy, Denali Commission, BIA, and private sector options. Project Capital Cost. Assuming an average 700 sq ft home, a hot water solar heater is in the $8-10,000 range. For a commercial building of approximately 4,000-15,000 sq ft, the capital cost is $50,000-$100,000 depending on the level of hot water use. Project Development. It is estimated that project development costs is roughly 5-15% of the capital cost. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 16 9/3/2008 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 This will be determined during the feasibility study phase of the project. Upon completion of this phase, information will be available to determine realistic O&M costs for new facilities. The business plan will also determine how these costs would be met. 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 There will be no power purchase or sale, since this solar hot water project does not involve the generation of electricity. All heat energy generated by the solar hot water heaters will be consumed on-site. The primary customers in each of the villages will be the school district, clinics, city buildings and water plants. The feasibility study will determine pricing structure for customers and rates of return. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please review attached cost work sheet. 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. NIHA will develop an operations plan for the solar hot water system. The operations and maintenance plan will be developed in conjunction with manufacturers’ guidelines. Little is needed in terms of a business plan for this particular deployment. 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 results of this work will include an economic analysis and recommendation for additional development work. Until the project is complete, this information is unknown. Central to the overall approach is Technical Analysis and Evaluation of how a Solar Hot Water System can perform in an arctic environment. This report can be used to reference other solar deployments in Alaska. A lessons-learned session/discussion will result, accompanied by fuel displacement and other performance metrics. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 16 9/3/2008 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 Displacement of heating oil used for water heating will be the chief project benefit. NIHA’s vision is to be reliant on regionally-available energy resources for heating and power generation. It is their vision to decrease the need for transportation of fuel into the region. As part of this vision, imported fossil fuels would be relied upon only as emergency or back-up fuel. Regionally available resources include renewable resources such as hydropower, solar, wind, geothermal, biomass, hydrogen and fuel cells; alternative fuels such as regionally available coal to gas resources; and regional fossil fuels such as natural gas and coal. The focus of our energy vision is on what can be developed locally, within our region. NANA Pacific and its parent company NANA Regional Corporation are working with regional, statewide, and national partners to address the energy crisis in Northwest Alaska. The work includes development of a comprehensive regional plan encompassing energy conservation, infrastructure development, improved efficiency and locally available energy resource development. The hydroelectric projects that could be developed out of the proposed assessment activities will help meet these goals and help stabilize energy costs, providing long-term socioeconomic benefits to villages. The NIHA’s service region is confronted by the reality that plagues much of rural Alaska: extremely limited economic opportunity combined with an almost astronomical cost of living. Recent increases in the price of oil have had a direct and drastic impact on the cost of diesel- generated power, especially in Alaska's sub-Arctic regions. In NANA's remote corner of the state, electricity can exceed 60 cents per kilowatt hour (kWh) and fuel costs are often upwar ds of $7 per gallon and continuing to climb. Many of the region's disadvantaged residents are forced to choose between heating their homes and buying groceries. The impacts felt within the NANA region are magnified by the additional costs associated with bulk fuel shipping, the poor economies of scale in power generation and distribution, and the possible reduction and/or elimination of the Power Cost Equalization (PCE) program and the State-Municipal Revenue Sharing programs. High fuel costs directly harm rural residents, eroding the health and well- being of the community. The high cost of living is also causing an increasing number of rural households to move to regional and urban centers, a trend which potentially threatens the long- term health of our communities. Faced with the challenges of high costs, limited local employment options and the need to support their families, many rural Alaskans are forced to leave village life behind in order to relocate to larger cities in search of employment and affordable living. In such small communities, each household is important to the well-being of the entire community. With more affordable energy available in the villages, more of our region's households will be able to afford to stay in their communities, promoting community stability and wellness and helping to stem the tide of rural migration. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 16 9/3/2008 Our region will enjoy a wide range of benefits from the proposed project, including increased employment, substantial energy cost savings, and positive cultural and social impacts. The great expense of powering homes in this remote region is often crippling to families with limited resources. The high cost of living in our region and lack of local employment opportunities drive many residents away from the villages to Alaska's urban areas. Employment generated locally by this project and the stabilization of energy costs will empower community members by providing new local opportunities, reducing the costly burden of energy bills, and keeping electrical payments in the local economy, thereby improving socio-economic conditions in the villages. We believe that these benefits will help stop and possibly even reverse the flow of rural - urban migration, contributing in a very important way to the long -term stability, health and well- being of our villages and our Inupiat Eskimo culture. 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 Total Anticipated Cost: $996,000  Resource Assessment Phase. The resource assessment phase includes the monitoring and evaluation plan and actual data collection. This is estimated to be $46,000. This is based upon an independent estimate.  Demonstration Project. The demonstration project will include a model project in Kotzebue, Alaska designed to showcase the technology in an Arctic Environment. The demonstration project is estimated to be $55,000.  Design, Procurement, and Installation. The effort to deploy the technology in those regional communities is next. This step will entail the design, procurement and installation. This is estimated to be $751,000.  O&M, Training, Evaluation and Close-Out. The final step is the close-out stage. This step is estimated to be $68,000. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 16 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 Signature Title Date