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HomeMy WebLinkAboutWainwright Coal Bed Methane Phase III App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 9 9/2/2008 Wainwright Heat Recovery 2008 -2Application 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 9 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) North Slope Borough Type of Entity: Municipality Mailing Address PO Box 69 Barrow, AK 99723 Physical Address 1274 Agviq Street Barrow, AK 99723 Telephone 907-852-0467 Fax 907-852-4115 Email kc.miller@north-slope.org 1.1 APPLICANT POINT OF CONTACT Name K.C. Miller Title Grant Administrator Mailing Address P.O. Box 69 Barrow, AK 99723 Telephone 907-852-0467 Fax 907-852-4115 Email kc.miller@north-slope.org 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 X 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 3 of 9 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. This project is a feasibility of the quality, quantity, and availability of methane gas around the city of Wainwright. Wainwright Coal Bed Methane phase III will include drilling of delineation wells at the Wainwright landfill and the Wainwright lagoon and a pump test of the wells. 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. Phase III of the Wainwright Coal Bed Methane is in the vicinity of Wainwright, Alaska. The parties that will be involved in this will be the North Slope Borough, United States Geological Survey and Arctic Slope Regional Corporation. This phase will consist of drilling delineation wells at the landfill and the Wainwright Lagoon. 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature a nd source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. The estimate from the USGS is $1,101,728 for the activities planned for 2009. 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. This project will benefit the City of Wainwright and possibly other villages nearby with a more affordable mechanism to heat homes. 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.) $1,101,728 2.5.2 Grant Funds Requested in this application. $ 500,000 2.5.3 Other Funds to be provided (Project match) $ 601,728 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $1,101,728 2.5.5 Estimated Benefit (Savings) $ 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.) $ Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 9 9/3/2008 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 North Slope Borough Public Works, CIPM Division will assign a Project Manager. The United States Geological Survey will also assign a Project Manager to the project. 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.) Drilling of delineation wells at the landfill and lagoon from June to mid July 2009 Pump test from June to mid July Well abandonment late July 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. This phase of the project is a feasibility study that will determine the quality, quantity and availability of methane gas near the city of Wainwright. 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. A Cooperative Effort Between the U.S. Geological Survey, Bureau of Land Management, Arctic Slope Regional Corporation, North Slope Borough, and Olgoonik Corporation 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Email and phone will be the main way of communication also site visits if necessary 3.6 Project Risk Discuss potential problems and how you would address them. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 9 9/3/2008 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. From the previous phase of this project it showed that there is very good potential of methane gas in the area of Wainwright. If there is sufficient amount of methane in the area it may possibly decrease home heating costs. 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. Right now there are two Caterpillar 3512 with 910 kW factory settings rated output. These two were installed in the early part of 2000 so they are about 9 years old. There are also three Caterpillar 3508 engines with 430 kW factory settings rated output. These three were installed in 1988 so they are about 20- 21 years old. Lead power plant operator in Wainwright estimated about 80% efficiency. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Diesel fired generators are currently used in the City of Wainwright. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Diesel is currently used. Diesel is barged in once annually. Fuel storage tanks must be sized to accommodate a year’s worth of fuel for the residential community as well as the companies in Wainwright. If this feasibility goes on to the next phase and proves there is enough methane near Wainwright it will provide energy customers with cheaper energy and also eliminate the fuel tanks. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 9 9/3/2008 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 This phase is feasibility and we don’t have a system design for this phase. 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. All phase III activity occurring on North Slope Borough property. 4.3.3 Permits Provide the following informationas 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 All required permitting is already in place from a previous phase. 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 Does not apply during the feasibility phase but will apply if the feasibility proves up and goes into the construction stage. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 9 9/3/2008 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 USGS estimates show the project cost at $1,101,728 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 No projected Operations and Maintenance costs for the feasibility stage. 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 Potential customers are residents and businesses in Wainwright, Alaska. On-going studies to determine the purchase/sale price and the proposed rate of return. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 9 9/3/2008 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. Does not apply. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. Post feasibility (Phase III determining the quality, quantity and availability of methane) 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 Minimize use of diesel fuel and maximize local resource of methane hydrate fuel. Right now diesel is barged in once annually and storage tanks are being used to accommodate a year’s worth of fuel. There are huge risks of fuel spills that come along with this system. If shown that there is sufficient amount of methane in good quality available then this would eliminate the huge fuel storage tanks. 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 Phase I budget – roughly $1,000,000 Phase II budget - $1,537,824 Phase III budget – estimated at $1,101,728 Construction Estimate – $30 million Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 9 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