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HomeMy WebLinkAboutNenana Healy Hydro Phase II App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 12 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 GVEA Nenana ROR Page 2 of 12 11/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Golden Valley Electric Association Type of Entity: Electric Utility Mailing Address PO Box 71249 Fairbanks, Alaska Physical Address 758 Illinois Street Fairbanks, Alaska Telephone Fax Email 1.1 APPLICANT POINT OF CONTACT Name Kate Lamal Paul Park Title Vice President of Power Supply Project Manager Mailing Address PO Box 71249 Fairbanks, Alaska Telephone 907-451-5645 907-451-5674 Fax 907-458-6388 Email kkl@gvea.com pmpark@gvea.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) X 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 A governmental entity (which includes tribal councils and housing authorities); Pending 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 GVEA Nenana ROR Page 3 of 12 11/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Phase II – Feasibility Analysis, Resource Assessment, Conceptual Design Golden Valley Electric Association is seeking financial assistance to continue analysis of a hydroelectric project on the Nenana River. Phase I Reconnaissance study funded by AEA Grant No 6 – Nenana Run of River is in progress with the final report due by 12/15/2008. 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. This project involves constructing a powerhouse, diversion structure with penstock, and substation for a new hydroelectric facility located on the Nenana River upstream of the Healy Creek confluence. The new substation would connect the hydroelectric power generation facility to GVEA’s existing high voltage transmission infrastructure in Healy. Electricity from the new power generation source would be distributed to GVEA’s 33,000 members from Cantwell to Delta Junction. 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. GVEA requests financial assistance from AEA to complete the Phase II Feasibility Analysis of the Nenana Run of River. Phase II Feasibility Study cost is estimated at $2,750,000. GVEA will contribute 20% of the study cost up to a total of $550,000 in cash and in-kind support. GVEA requests AEA contribute 80% of the study cost up to a total of $2,200,000. The total project estimate of $24,000,000 is based on an average $2400/kw cost for three similar projects in Alaska. The Nenana Run of River Reconnaissance report will include a project specific cost estimate. 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. Electric power generated by the Nenana Run of River hydroelectric facility will directly reduce power generated by GVEA using naphtha/fuel oil. At current fuel prices, this will reduce GVEA members’ electric rates. GVEA’s dependence on the TAPS pipeline supply of oil will be reduced and add diversity to GVEA’s existing power generation system. The Alaskan public will benefit by the utilization of a renewable resource. The reduction of fuel burned to generate electricity will result in fewer emissions of NOx, SO 2, and CO2 that affect Alaska’s air quality. 2.5 PROJECT COST AND BENEFIT SUMARY Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 4 of 12 11/3/2008 Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $ 24,000,000 2.5.2 Grant Funds Requested in this application. $ 2,200,000 - AEA 2.5.3 Other Funds to be provided (Project match) $ 550,000 - GVEA 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 2,750,000 2.5.5 Estimated Benefit (Savings) $ 104,937,120 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.) $ 70,000,000 – Estimated Savings minus project costs over 30 years directly reduce GVEA customer bills 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. Paul Park – GVEA Project Manager (Appendix A) 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.) Phase II Feasibility Study Schedule (Appendix D) 1/30/2009 AEA Forwards Nenana ROR Phase II to Legislature 2/9/2009 GVEA requests Knight Piesold to develop proposal for Phase II work 3/30/2009 GVEA reviews KP proposal and negotiates tentative contract 5/4/2009 Knight Piesold begins hydrological, environmental, permitting work 7/1/2009 AEA finalizes award documents 8/3/2009 Knight Piesold begins geotechnical/engineering work 2/22/2010 GVEA develops public information package for distribution 3/29/2010 GVEA issues public information and begins public comment period 4/14/2010 GVEA/KP organize community meeting in Healy to discuss project 4/29/2010 GVEA/KP organize community meeting in Fairbanks to discuss project 11/19/2010 KP issues Nenana ROR Phase II Feasibility Study 12/31/2010 GVEA issues AEA Closeout Report 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Phase II Feasibility Study Milestones are shown on Study Schedule (Appendix D) 1/30/2009 Including Nenana ROR Phase II in bill to Legislature initiates RFP from KP 4/10/2009 GVEA decision to contract KP before Legislature approval of project Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 5 of 12 11/3/2008 5/4/2009 GVEA decision for KP to start limited work before Legislature approval of project 7/1/2009 AEA finalizes award documents, KP released to begin all work 11/11/2009 GVEA/KP Phase II Viability Review 2/24/2010 Review engineering/permitting work from KP 3/1/2010 Develop public information package with engineering information from KP 3/29/2010 Issue public information package, begin two month comment period 4/14/2010 GVEA/KP hold community meeting in Healy to discuss project 4/29/2010 GVEA/KP hold community meeting in Fairbanks to discuss project 6/16/2010 Review public comments with KP, incorporate into project 11/19/2010 KP issues Nenana Run of River Phase II Feasibility Study 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. Resumes (Appendix A) GVEA Power Supply – Project management for Feasibility Study by Knight Piesold GVEA Admin – Accounting and administrative support for Feasibility Study GVEA Purchasing – Contract development with consultant Knight Piesold Consulting Engineers – Performed initial Nenana Run of River Reconnaissance Study, GVEA will request Knight Piesold to continue work on the Phase II Feasibility Study. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The GVEA Project Manager will oversee and facilitate Knight Piesold engineering work. The contractor will submit monthly reports detailing work activities, accomplishments, problems, and schedule/budget status. Formal design/progress review points are established in the study schedule. The AEA will be updated in writing quarterly by the GVEA Project Manager as to Phase II Feasibility Study status, schedule update, and cost versus budget report. 3.6 Project Risk Discuss potential problems and how you would address them. The Nenana Run of River Reconnaissance Study has not identified any technological fatal flaws, the next step is determining economic viability. The public may see this project as reducing recreational activities on the Nenana River or damaging grayling migration and populations. Phase II Feasibility Study community meetings and publications with project information will allow all stakeholders to understand the project and voice their concerns. Knight Piesold will weigh the public’s concerns and determine the impact to the project viability and cost. In-stream flow requirements to support fish habitat are yet to be determined and would impact power production if the estimated 3000 cfs water flow is not available. Economic viability of the Nenana Run of River project may be impacted by large scale energy projects being considered Railbelt wide. Natural gas available to the Interior would increase the number of years to payback the project due to reduced power generation costs. Construction of Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 6 of 12 11/3/2008 the Susitna Dam project would leave this small, seasonal hydroelectric facility unneeded by GVEA members. Progression of this project past the Phase II Feasibility Study must be determined by a long term forecast of proposed energy projects capable of serving GVEA members. 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. Based on USGS water statistics and head available, 10 MW of power can be generated for approximately 6 months per year for a total of 43,200 MWh/yr. Low winter water flow and grayling migration contribute to the seasonal operation of the proposed hydro facility. Developing sources of electricity that avoid cost fluctuation due to world oil market prices is a mandate from GVEA’s Board of Directors. Hydro projects that have no fuel cost associated with producing electricity meet the Board’s objectives. Hydroelectric power is a proven source of electricity and does not have the intermittent production characteristic of wind and solar power. No air emissions are generated from hydro power production although capital construction costs have traditionally been expensive in $/kw. 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. GVEA’s power generation infrastructure consists of coal fired plants and gas turbines burning fuel oil. GVEA also receives power from Bradley Lake Hydro, Chugach, and ML&P via the Railbelt Alaska Intertie Transmission System. Station Year Fuel Type Production Efficiency Healy 1 1967 Coal Pulverized Coal 26 MW 25% Zehnder 1971 Fuel Oil Gas Turbines-2 41 MW 24% NPPP 1978 Fuel Oil Gas Turbines-2 120 MW 34% NPEP 2007 Naphtha Combined Cycle 60 MW 48% Delta (Chena 6) 1977 Fuel Oil Gas Turbine-1 21 MW 25% Aurora (Usibelli) 1952 Coal Stoker Boilers-4 25 MW 24% Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 7 of 12 11/3/2008 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. GVEA uses an economic dispatch model for supplying power to customers. Healy and Aurora plants are normally base-loaded. Up to 70 MW can be purchased for GVEA members via the Alaska Intertie as available. NPEP can be regulated to provide incremental power on an as- needed basis during off-peak season or base loaded in the winter. Zehnder and NPPP are operated on an as-needed basis to fulfill power supply requirements to customers. The Delta Plant is an emergency generation facility for the Delta Junction customers. The addition of power from a hydro facility would directly reduce power generation from naphtha during the summer season. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Integrating 10 MW of hydroelectric power into GVEA’s transmission system is not expected to cause any system instability. A more expensive source of power would be reduced to adjust the system’s load balance. Any reduction of fuel consumption directly reduces GVEA customer charges. GVEA’s members have a keen interest in renewable power and some have chosen to pay more for power produced by SNAP. The GVEA Board of Directors and Green Advisory Committee support the development of hydroelectric power. 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 See Appendix F for the Knight Piesold Fatal Flaw Analysis 10/31/2008. The Nenana Run of River Reconnaissance Study is due 12/15/2008 from Knight Piesold. Knight Piesold’s approach to selection of the specific hydro generation equipment is based on Nenana River recreation/fish habitat requirements and construction cost alternatives. A run-of- river type penstock construction is being evaluated against a low head in-stream type of turbine. Either option produces a minimum of 10 MW based on the USGS water statistics. The annual generation is estimated as 43,200 MWh during six months of operation. The power generated will be added to the Railbelt Intertie line at Healy for delivery to GVEA customers through the Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 8 of 12 11/3/2008 existing distribution system. 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. A preliminary survey of land ownership indicates the State of Alaska Department of Natural Resources, State of Alaska Mental Health Trust, and the Alaska Railroad own the land where development would take place. Land owners will be contacted when the project is better defined as far as diversion, powerhouse, penstock, and substation locations. 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 Knight Piesold will develop the list of applicable permits and move forward with obtaining authorizations from all applicable agencies for any use of land or resources during Phase II Feasibility activities. Federal Permits may include a FERC License, US Army Corps of Engineers Obstruction of Navigable Waterway Permit, Environmental Protection Agency New Source Performance Statement. State Permits may include Department of Environmental Conservation Water Quality Certificate of Reasonable Assurance and Air Quality Permit to Operate, Department of Fish and Game Fisheries Protection Permit, and Department of Natural Resources Water Right, Permit to Construct a Dam, Material Sales, and Right-of Way Permits. 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 GVEA and Knight Piesold have had an initial meeting with the State of Alaska Department of Fish and Game to discuss environmental issues concerning the Nenana River. Healy Creek is an anadromous stream and will not be affected by the proposed hydro project. Fish and Game indicated the Nenana River Canyon has a grayling population that must be protected and any potential project must have provisions for maintaining the grayling habitat. No threatened or endangered species where mentioned during the initial meeting. Rafting companies and recreational users must be accommodated by any proposed intake diversion and hydro design. Knight Piesold has experience designing white water parks and Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 9 of 12 11/3/2008 user access in conjunction with diversion dams. 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 GVEA estimates the total project cost as $24,000,000 based on $2400/kw average of three similar projects in Alaska. A project specific estimate will be provided in the Nenana Run of River Reconnaissance Study being performed by Knight Piesold. AEA is participating in the Reconnaissance study and has identified the project as AEA Grant No. 6 – Nenana Run of River. Based on preliminary information from Knight Piesold, the Phase II Feasibility Study is expected to cost $2,750,000 to complete. GVEA will contribute 20% of the study cost up to a total of $550,000 in cash and in-kind support. GVEA requests AEA to contribute 80% of the study cost up to a total of $2,200,000. This hydro project may be eligible to participate in the 2008 Clean Renewable Energy Bond Program (CREB) sponsored by the US Treasury. Completion of the Phase II Feasibility study would be required to begin the application process for this Federal program. 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. Operating and Maintenance costs for the proposed Nenana Hydro plant are estimated at $1,226,880/year based on GVEA 2007 Actual O&M Expenses for Healy Unit 1 and the NP turbine plants. Any additional O&M costs would be included in GVEA’s Annual Power Supply budget in the same manner as for the existing power plants. The hydro facility would be automated and controlled from the manned control room at the Healy Power Plant. Maintenance and monitoring would be provided by existing GVEA staff at Healy. 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 Electrical energy generated by the Nenana Run of River Hydro plant would be available for members in GVEA’s existing distribution system at GVEA’s regulated rates. Based on a 30 year Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 10 of 12 11/3/2008 service life, $2400/kw total cost, and the 2007 naphtha cost, GVEA member’s rate of return is estimated to be 14%. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. AEA Cost Worksheet (Appendix B) 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. The completed hydro project will be operated and maintained by GVEA Healy Power Supply. Maintenance and spare parts inventory would be incorporated into the existing Healy PM/Work Request/Inventory program. The system description, construction drawings, O&M manuals, and operation/training documents will be included in the Healy Operations Documents. The addition of this plant to operation duties would have a nominal effect on the daily Healy work load. 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 Nenana Run of River production estimate of 43,200 MWh equals a fuel savings of $4,724,784 per year. From a payback perspective at 6% interest and an average 2007 naphtha cost of $0.10937/kwh for the duration of payback period, it would take less than 10 years to payback the initial project cost of $24,000,000. This payback analysis is based on net savings of unused fuel minus the O&M costs. The capital recovery payback period will fluctuate with the yearly fuel cost. This analysis uses an average 2007 naphtha cost of $1.768/gallon (equivalent to $75/bbl ANS crude, naphtha peaked at $3.22/gallon when ANS crude was $140/bbl). Using the average 2007 naphtha cost provides a conservative project benefit/cost ratio and payback period, GVEA’s average 2008 naphtha cost through September was $2.73/gallon. GVEA recommends proceeding to the Phase II Feasibility stage to continue evaluation of the Nenana Run of River Hydro project. This will further define the total project costs based on in- depth geological, environmental/permitting, hydrological, and public input information. Hydro design and alternative locations will be evaluated and a final design/location selected. A realistic project timeline can be established for continued project development, financing, construction, and integration into GVEA’s power generation system. 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) Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 11 of 12 11/3/2008  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The addition of 43,200 MWh per year amounts to a reduction of 2,674,355 gallons of naphtha per year burned at NPEP. At the average 2007 naphtha cost, this is a displaced fuel savings of $4,424,784 and net savings of $3,497,904 per year for GVEA members. Over the 30 year life of the project, 80,230,650 gallons of naphtha would be avoided and the members would realize a savings of $70,000,000 after paying for the new facility. Fuel savings and investment rate of return over the minimum 30 year life of the project are totally dependent on the price of energy. With AEA’s Renewable Energy Grant, further evaluation of this hydroelectric project will be possible for the benefit GVEA’s 33,000 members. In 2005, GVEA’s Board of Directors adopted a Green Power Pledge to supply 20% of the power load from renewable energy sources by 2014. This new hydroelectric project will help GVEA to meet the Board’s Green Power Pledge. If the proposed CO2 emission penalties are enacted by Congress, additional savings will be realized by GVEA members during operation of the Nenana Run of River hydro facility. The Alaskan public will benefit by utilization of this renewable resource. Reducing fuel burned results in lower NOx, CO, and CO2 emissions from the gas turbine to Alaska’s air and a reduced dependency on the TAPS oil supply for residents of the Interior. 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 AEA Grant Budget Form (Appendix C) GVEA estimates the total project to be $24,000,000. The $2400/kw estimate is based on the average installed cost from Lake Dorothy Hydro ($34M/14.3 MW), Black Bear Hydro ($10M/4.5 MW), and Goat Lake Hydro ($12M/4 MW). At completion of the Reconnaissance Study being performed by Knight Piesold (12/15/2008), GVEA will have invested $15,000 and AEA contributed $60,000. An updated project cost and economic analysis will be provided in the Knight Piesold Reconnaissance Study on 12/15/2008. Estimated cost for the Nenana Run of River Phase II Feasibility Study is $2,750,000. GVEA proposes to fund 20% of the Phase II Feasibility Study cost up to $550,000 through cash contribution and in-kind labor and support activities. GVEA requests AEA to fund 80% of the Phase II Feasibility Study $2,200,000 so development work can continue on the Nenana Run of River Project. Renewable Energy Fund Grant Application AEA 09-004 GVEA Nenana ROR Page 12 of 12 11/3/2008 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