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Home My WebLink AboutHot Spings Bay Valley Geothermal Reconnaissance App Renewable Energy Fund Grant Application AEA-09-004 City of Akutan Grant Application for Hot Springs Bay Valley Geothermal Reconnaissance Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 60 9/2/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Akutan Type of Entity: Municipal Government – Second Class City Mailing Address 3830 C Street, Suite 205 Anchorage, Alaska 99503 Physical Address 100 Windy Way, Akutan, Alaska 99553 Telephone 907.274.7565 Fax 907.274.1813 Email jbereskin@gci.net and akutanadmin@gci.net 1.1 APPLICANT POINT OF CONTACT Name Joseph Bereskin Title Mayor Mailing Address 3830 C Street Suite 205 Anchorage Alaska 99503 Telephone 907.274.7565 Fax 907.274.1813 Email jbereskin@gci.net and akutanadmin@gci.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or 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 2 of 60 9/3/2008 SECTION 2 – PROJECT SUMMARY Geothermal Development of Hot Springs Bay Valley at Akutan Overview The City of Akutan is located on Akutan Island in the eastern Aleutians, some 790 miles southwest of Anchorage. It is an incorporated, second class city encompassing 13 square miles of land and 5 square miles of water. The City is currently preparing an annexation request that would expand its area to 148 square miles. Population in the 2000 census was 112 Native and 713 total. Estimated population in 2007 was 859. The economic base of Akutan is the Bering Sea fishery. The City is home to the largest seafood processing plant in North America owned by Trident Seafoods, the fifth largest employer in Alaska, with $1 billion in annual sales. There are nearly 900 workers employed at the Akutan plant. Expansion of the Bering Sea fishery and Akutan’s location 35 miles closer to the fishing grounds than Unalaska/Dutch Harbor have pointed to the need for improved infrastructure at Akutan. Current projects include state construction of a $75 million airport and transportation system, a $24 million Corps of Engineers harbor construction, and an $8 million road to connect the harbor to the City. These projects are all scheduled for completion in the next 2-3 years. Like most of Alaska’s villages, Akutan, including the Trident plant, are entirely dependent on diesel fuel imported into the area for heat and power. Projected growth, the steady rise of fuel costs, and the high level of carbon emissions make the development of renewable energy resources a must for Akutan. Consequently, the City has developed a renewable energy strategy that includes three projects: • Near-term: Upgrade the City’s existing 105 kW hydropower generation system to improve reliability and efficiency with a goal of reducing diesel fuel consumption by 60 percent by FY 2010. • Mid-term: Develop the Loud Creek hydropower generation system with a goal of reducing diesel fuel consumption 90 percent by FY 2012, provide power to the harbor, and allow for power sharing with Trident Seafoods. • Long-term: Develop the Hot Springs Bay geothermal project to virtually eliminate the City’s use of diesel fuel, support the City’s expanded infrastructure, stimulate economic development throughout the region, and allow power sales to Trident to reduce carbon emissions and provide a source of revenue for the City and Native Corporations. The City has submitted Renewable Energy Fund grant applications for each of the above-described projects. This application is for the Hot Springs Bay Valley Geothermal Reconnaissance (“the project”). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 60 9/3/2008 Project Background The State of Alaska Department of Natural Resources and University of Alaska Geophysical Institute have already conducted several field surveys and an appraisal of the development potential of a geothermal resource located in Hot Springs Bay Valley on Akutan Island. These studies have shown that Hot Springs Bay Valley is one of the most promising sites in Alaska for geothermal development. Further field investigation is needed to determine the efficiency and hydrologic parameters of the resource. This is an extremely important project that will promote local and regional economic development, reduce energy costs, provide for growth of the Bering Sea fishery, and present an opportunity for local renewable energy applications such as greenhouse farming and tourism. Project Description The City of Akutan intends to evaluate the feasibility of developing the Hot Springs Bay Valley into an active geothermal resource for power generation and related applications. The purposes and anticipated results of this effort are those set forth in Section 2.3 Phase I – Reconnaissance Requirements of the renewable energy grant application instructions. The project will involve four primary tasks: 1. Prospecting: Analysis of existing data and previous scientific studies. Geological, geophysical and geochemical field work sufficient to support exploratory drilling. 2. Exploratory Drilling and Well Testing: Includes mobilization, drilling of test wells, flow testing and demobilization based on the results of prospecting. 3. Preliminary Feasibility Study: A comprehensive assessment of the proposed geothermal development project, including technical alternatives, land issues, environmental screening, financial and operational viability. 4. Economic Assessment: Examines Akutan’s growing infrastructure, including airport construction, port expansion and growth of Trident Seafoods. Assesses potential for cooperative development among the City, Akutan Corporation, Aleut Corporation, Trident Seafoods and other stakeholders. Identifies public and private financing alternatives. Defines the key elements of the business plan for development and operation of the resulting power system. Completion of the Phase I Reconnaissance project will allow all potential stakeholders, including the State of Alaska, to determine the potential technical and economic viability of the proposed geothermal development before proceeding with feasibility and conceptual design tasks (Phase II). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 60 9/3/2008 Project Team The City of Akutan has a project team in place to manage the Hot Springs Bay geothermal project. Ms. Amanda Kolker, a well-known Alaskan geothermal geologist, has agreed to act as a senior project advisor as the City prepares for active prospecting and exploratory drilling at the Hot Springs Bay site. When this grant request is approved, she will assume the duties of Project Manager as defined in Section 2.1 of the grant application instructions. As Project Manager, Ms. Kolker will work directly with AEA and the City to ensure effective management of the scope, schedule and budget of the grant agreement. She will be supported by the City’s renewable energy program management team, RMA Consulting Group (“RMA”). RMA will assist with the development of the detailed scoping documents, project plans, schedules and specifications necessary for issuing requests for proposal. They will also provide contract management services to ensure effective performance of all contractors and consultants. Summary This project provides a unique opportunity to virtually eliminate the dependence on diesel fuel for power generation and local heating. When developed, Hot Springs Bay can provide more than 12 MW of clean power to support regional growth and expanding infrastructure. Development of the resource will provide opportunities for applications to develop alternative energy solutions, greenhouse farming and tourism. This request for funding of Phase I Reconnaissance is an important first step in defining the resource and determining the viability of proceeding to the next phase of development. 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 is a Phase I - Reconnaissance, including field exploration, test drilling and well testing for a known geothermal resource located at Hot Springs Bay Valley, Akutan, Alaska. 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. In cooperation with Akutan Village Corporation and Aleut Regional Native Corporation, the City of Akutan, is examining the potential for power generation from a known geothermal resource at Hot Springs Bay Valley. This renewable energy grant application is a request for funding of the reconnaissance phase of the project. The reconnaissance will include a technical and economic assessment of the potential for proceeding to the next phase of development. In addition to the evaluation of existing scientific studies, the reconnaissance will allow for further field exploration, drilling of Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 60 9/3/2008 test wells, well testing, and an economic assessment of the potential for further public sector or private sector development and financing. The results of the reconnaissance will be compiled in a preliminary feasibility report, which will include specific findings and recommendations regarding the viability of proceeding with the next phase of development. 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. AEA has recently developed cost estimates for 16 priority geothermal projects in Alaska (see Memorandum, “Geothermal Cost Matrix”, dated September 15, 2008, prepared by Hattenburg, Dilley & Linnell, Lorie Dilley, PE/CPG.). The Hot Springs Bay Valley geothermal resource was included in the estimates for both a shallow and deep resource potential. Based on these estimates and discussions with industry experts, the City estimates the total project cost through construction at $45,000,000. The Phase I Reconnaissance will serve to validate or refine this estimate. Funding required for Phase I Reconnaissance is as follows: • Prospecting: $485,000 • Exploratory Drilling: $1,750,000 • Well Testing: $200,000 • Preliminary Feasibility Study: $125,000 • Economic Assessment: $35,000 Total Request:$2,595,000 The City of Akutan is asking that this Phase I Reconnaissance be fully funded by the Alaska Renewable Energy Grant Fund – a total request of $2,595,000. 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. As the City prepares for the build-out of more than $100 million of infrastructure projects and increased economic development, renewable energy development will provide long-term sustainability for the City, tribal organizations and the local seafood industry. This opportunity presents a broad range of economic and social benefits for the City, the region and the State of Alaska, including employment, tax revenue, improved public services, and substantial reduction of carbon emissions. The economic assessment task of this proposed Phase I Reconnaissance will serve to define and quantify the specific benefits of developing the Hot Springs Bay Valley resource. Additional discussion of project benefits is provided in Section 5 of this grant application. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 60 9/3/2008 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.) $45,000,000 2.5.2 Grant Funds Requested in this application. $2,995,000 2.5.3 Other Funds to be provided (Project match) 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $2,995,000 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.) $ 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 City of Akutan is actively engaged in planning for development of the Hot Springs Bay Valley geothermal resource. A project team is in place to help guide implementation of the City’s renewable energy strategy, and to work with AEA on grant funded projects. In addition, the project team assisted the City with this grant application, and will continue project planning and preparation until this grant funding request is approved. Ms. Amanda Kolker, a well-known Alaskan geothermal geologist, will be supporting the City’s planning efforts as a project advisor throughout the grant pre-approval period. She will be available to work with AEA should there be a need to modify the City’s grant application. When grant funding is approved, Ms. Kolker will assume the duties of Project Manager, as part of the City’s renewable energy program management team. The program management team organization is as shown below: As noted in Section 3.4 of this application, the City is examining several options for project development, including a partnership, joint development agreement or other arrangement which could provide overall project support. This means the City reserves the right to choose another project management team as the City feels will best serve its interest and the performance of this project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 60 9/3/2008 Renewable Energy Program Management Team Resumes for the Project Manager and Program Management team members shown above are attached to this application. RMA Consulting Group will provide the resources and administrative support Ms. Kolker needs to manage the Hot Springs Bay geothermal project. This team will assist with development of the detailed scoping documents, project plans, schedules and specificiations necessary for issuing requests for proposal. They will also assist the City with the procurement process, including proposal review, contractor selection and preparation of contract documents, as well as, contract management services to ensure effective performance of all contractors and consultants. When contractors/suppliers are selected and approved, Ms. Kolker will manage the combined efforts of the engineering and technical services project team. She will be the primary interface with the AEA grant manager, and be responsible for progress reporting for identified project milestones and overall compliance with the project scope, schedule and budget as defined in the grant agreement. 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.) The proposed Phase I Reconnaissance consists of four primary tasks that can be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 60 9/3/2008 completed within 12 months of execution of the grant agreement. This schedule is highly sensitive to the availability of drilling and testing equipment. However, the City’s discussions with leading geothermal development consultants indicate these resources can be obtained on fairly short notice. The remaining tasks of the project – prospecting, preliminary feasibility study and economic assessment – will generally overlap with drilling and testing activities. The specific schedule of the project will not be known until engineering and consulting services are procured. The City’s requests for proposals will require bidders to identify the schedule for task completion and deliverables. A generalized schedule for primary tasks is as follows: • Contractor/Consultant Procurement: 2 months • Prospecting: 4 months • Exploratory Drilling and Well Testing: 5 months • Preliminary Feasibility Study: 6 months • Economic Assessment: 3 months • Project Review/Wrap-up 1 month An overall estimate of the project schedule is attached to this grant application. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The primary tasks of the proposed Phase I Reconnaissance will include the following milestones: • Project Startup – Includes grant execution and setup for grant management/administration. • Procurement – Preparation of RFPs and selection of contractors/consultants required to perform the work. • Prospecting – Completion of geological, geophysical, and geochemical testing and analysis. • Exploratory Drilling - Drilling of 3 to 5 test wells and production well(s). • Well Testing – Completion of geothermal gradient testing, downhole geophysics and flow testing for test wells and selected production well(s). • Preliminary Feasibility Study – Preparation of a written report that addresses the feasibility analysis and conceptual design requirements of Section 2.4 of the grant application instructions. • Economic Assessment – A written report that addresses the economic requirements of the feasibility analysis, as defined in Section 2.4 of the grant application instructions. Includes recommendations for development of the project business plan. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 60 9/3/2008 • Project Review/Wrap-up – Publish final reports and review results with grant manager. Final budget review and project close out. The schedule for these milestones is shown in the attached project schedule. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The City believes a team approach should be used to implement and manage its renewable energy projects. The team will consist of selected City staff, the RMA program management team, selected contractors/suppliers, and the AEA grant manager. Each of the tasks described in this application requires specialized knowledge and skills that must be obtained from private sector consultants and service providers engaged in or highly familiar with geothermal resource development. When engaging engineering and professional services to complete the four primary tasks of the reconnaissance, the City will consider two alternatives: 1. Select one or more contractors/consultants to perform specific tasks and prepare the reports and assessments required by the scope of the grant. 2. Enter into a partnership, joint development agreement or other arrangement with a qualified geothermal development company capable of providing technical, professional, financial and operational support for all phases of project evaluation and development. The City and its Project Manager will work closely with AEA to ensure that the best professional and technical resources are brought to bear on the Hot Springs Bay Valley geothermal project. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The City has identified Ms. Amanda Kolker as the Project Manager and primary point of contact for communications with AEA and the grant manager. This will ensure an effective, continuous flow of communication throughout the project. In addition, the project team will use a suite of project management tools including web-based communications and reporting, task and milestone tracking, work breakdown structure, scheduling, document control, budget control and risk management. The Project Manager will coordinate with the AEA grant manager to develop a schedule Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 60 9/3/2008 of reports. At a minimum, the City will conduct weekly status teleconferences and web- based distribution of weekly reports on scope, schedule, budget and unresolved issues. Trouble shooting reports and teleconferences will be provided on an as needed basis. 3.6 Project Risk Discuss potential problems and how you would address them. Geothermal exploration, development, and operations are subject to uncertainties which are similar to those typically associated with oil and gas exploration and development. The risks include project site control, permits/regulatory approvals, environmental aspects and mitigations, and cultural and archaeological mitigations. Other risks are associated with financing, construction, and project completion. Financing is highly dependent on power purchase agreements and a so-called “bankable” geothermal reservoir report. Project completion will require long-term commitment of public and private partners and stakeholders. The proposed Phase I Reconnaissance is based on significant evaluation of the Hot Springs Bay Valley resource that concluded further investigation is warranted. This previous research greatly reduces the risk associated with locating a developable resource. Project costs can be contained through more predictable well placement and by an integrated approach to field exploration and project management. The existing commitment of the principal stakeholders for this project – the City, Aleut Regional Native Corporation, Akutan Village Corporation, and Trident Seafoods Corporation – is the key to risk management at this stage of development. The parties plan to develop a fully integrated legal and contractual framework for project development, that will avoid project delay or disruption. 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. In 1980, the State of Alaska conducted an extensive geothermal reconnaissance of the Aleutian arc and declared Hot Springs Bay Valley on Akutan Island as “one of the most promising sites for future development”. The reconnaissance report goes on to say: Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 60 9/3/2008 Preliminary geothermometry applied to waters obtained from Akutan hot springs indicated reservoir temperatures of 170 - 1900C (Motyka and others, 1981), sufficient for electrical-power generation. The thermal waters could also be used for space heating and for industrial direct-use application. (See Report of Investigations 88-3, “A Geological, Geochemical, and Geophysical Survey of the Geothermal Resources at Hot Springs Bay Valley, Akutan Island, Alaska,” State of Alaska, Department of Natural Resources, Division of Geological and Geophysical Surveys, Edited by Roman J. Motyka and Christopher J. Nye, March 1988. Hereafter, “Motyka and Nye”, available at www.dggs.dnr.state.ak.us/pubs/) The Motyka and Nye report includes six separate reports based on extensive scientific analysis and field investigation. The summary assessment estimates the power production capacity of the Hot Springs Bay Valley resource as 12.7 MW over a 30-year period, and recommends further exploration and testing, prior to development. The report concludes with this suggestion for resource development (Motyka and Nye, Chapter 7, p. 113): The proximity of the Hot Springs Bay Valley geothermal resource area to Akutan village and the harbor make this resource a particularly attractive one for continued exploration and development. The resource area lies near the coast and is accessible by sea. Exploration and drilling equipment can be brought to the site by barge and tractor, with little or no helicopter support. Development of the resource could be tailored to the needs of the Akutan community; the estimated wellhead energy potential should be more than adequate to meet their electrical power, district heating and industrial direct heating needs. (emphasis added) Although other sources of renewable energy are available at Akutan, no known alternative to Hot Springs Bay Valley geothermal development would likely present the same advantages of site access, production capacity, proximity to the village, and a wide variety of commercial and industrial applications. The most recent examination of energy alternatives for Akutan is presented in the AEA study of the Akutan power system (see “Conceptual Design Report, Akutan Rural Power System Upgrade”, Alaska Energy Authority, Rural Power Group, April 2007, prepared by LCMF, hereafter the “LCMF study”) The LCMF study concludes that with some upgrade and power saving measures, “The existing power generation facilities have the capacity to efficiently accommodate the projected growth in demand” (LCMF Study, p. 11). However, the current system is entirely diesel-based power generation and does not have the capacity to support existing or planned commercial and industrial development, or applications such as district heating. Akutan does have existing and planned hydropower production capability. The existing 105 kW hydro plant was constructed in 1994 and operated for a number of years. However, the plant is currently inoperable and in need of upgrade. A second hydro site Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 60 9/3/2008 with an estimated capacity of 350 kW – 400 kW is being planned for Loud Creek. The City is requesting renewable energy grant funds for both of these projects under RFA AEA-09-004. In keeping with the City’s adopted energy strategy, small hydropower development will provide near-term and mid-term renewable energy to reduce the City’s dependence on diesel fuel and produce a significant cost savings for the City and its residents. However, the Hot Springs Bay Valley geothermal resource presents the best opportunity to provide long-term renewable energy for residential, commercial and industrial growth. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The LCMF study provides a current description of the Akutan energy system, as follows: (LCMF Study, pp 5-7) A. Diesel Plant Facility Description Akutan Electric Utility Inc. operates a diesel power generating facility which presently provides electricity to the entire community. The power plant is located at the west end of the City. It houses two diesel generators: 70 kW Caterpillar engine, 150 kW Perkins engine and associated switchgear. The switchgear includes a Direct Logic 205 PLC and equipment for a third generator. The 205 PLC was set up for an I/O interface with the hydro plant via radio communications, although no communication link had been installed. In conjunction with this report, a study was conducted to determine the feasibility to integrate control systems between the diesel plant and hydro plant. It is recommended to establish such communication link so it will provide for parallel operation of the two existing power generating plants. It will also provide the ability to incorporate the diesel plant control system into the existing HMI at the City Hall. See Appendix A – Overview of Generation System by EPS. B. Hydroelectric Facility Description The hydroelectric powerhouse is located at the east end of the city. It is a stand-alone generation facility consisting of a self – contained 175 kVA (105 kW peak capacity) Canyon Industries hydro generator, backed by a 125 kW Perkins diesel generator in the same module. The facility features a 4-inch plastic penstock, which provides water to a Pelton wheel turbine from a reservoir 800 feet above the powerhouse. The hydro plant has a PLC based control system that allows for the hydro generator to be paralleled with diesel one. The controls also provide remote monitoring and control of the powerhouse. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 60 9/3/2008 According to the representatives of the City of Akutan, the hydro plant is not currently operational. The ANTHC cut the main line during the construction of the water treatment plant. The process for repairing the line is in progress. It is anticipated that the plant should be operational in the very near future. C. Existing Power Generation Capacity Summary The following table lists the existing total power generation capacity: Existing Total Power Generation Capacity Generator Capacity (KW) #1 Power Plant 70 #2 Power Plant 150 #3 Hydro Plant 105 #4 Hydro Plant 125 Total 450 D. Existing Electrical Distribution System The existing electrical distribution system for Akutan was evaluated by EEE in conjunction with this report. The electrical generation system in Akutan consists of a diesel power plant and a hydro plant. The field inspection of the power distribution system, performed by Greg Errico, indicates necessity for the modification and/or replacement. Two of the three 3- phase junction boxes have missing parts/sides of their enclosures. The enclosures should be relocated and have new 7.2/12.5 kV junctions installed. Most of the pad mounted transformer doors are not locked or not properly secured. Many electrical services have deteriorated beyond functioning to enclose the facilities it houses and would require replacement or an upgrade. The City is submitting a renewable energy grant request to fund repair and upgrade of the existing hydropower system. This will include control upgrades to improve efficiency. A Community Development Block Grant is currently funding the power system upgrade described in the LCMF study. When these two projects are completed, increases in both capacity and efficiency should allow the City to significantly reduce its dependence on diesel fuel, until the Hot Springs Bay Valley geothermal resource is developed. 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. Electrical power for Akutan is provided by diesel generators operated by Akutan Electric Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 60 9/3/2008 Utility, Inc., a non-regulated utility. The best available information regarding energy resource utilization comes from the Power Cost Equalization (PCE) Reports filed with the Regulatory Commission of Alaska. The City’s PCE annual report for July 2007 to June 2008 shows the consumption of 48,013 gallons of #2 diesel fuel at an average $2.93/gallon cost of fuel. With an annual generation of over 692,000 kWh, the cost of power related to fuel is $0.25/kWh. When non-fuel power costs are added, the City’s total cost of power is $0.54/kWh. The cost of power in Akutan will drop dramatically over the next two years if the Akutan Hydroelectric System Repair and Upgrade and the Loud Creek Hydroelectric development projects are approved for renewable energy grants. However, these projects will not provide the long-term energy needed for planned growth and economic development in Akutan. With the development of the Hot Springs Bay Valley geothermal project, the existing generation system could be placed in a standby mode for emergency or contingency use. Other impacts on the existing infrastructure, including the distribution system, will not be known until the feasibility study, conceptual design phase of the Hot Springs Bay project is completed. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Power for Akutan is provided by the Akutan Electric Utility, Inc., an unregulated utility. The most current Annual Power Cost Equalization (PCE) Report for Nonregulated Utilities was filed with the Alaska Regulatory Commission for the period July 2007 to June 2008. The report provides the following market data: Sales Revenue Class Customers Revenue Residential 37 $70,441 Commercial 17 $67,775 Community Facilities 12 $41,709 Total:$179,925 Total utility operating expense: $358,167 City subsidy to electric utility: $178,242 Cost of power related to fuel: $0.25 kWh Total cost of power: $0.54 kWh City subsidy to customers: $0.27 kWh It is assumed that development of the Hot Springs Bay Valley geothermal project will eliminate the City subsidy of power generation and dramatically lower the cost of energy Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 60 9/3/2008 for power users. However, existing market requirements do not justify the development of the Hot Springs Bay resource. This project is intended to support the unprecedented public investment in infrastructure at Akutan, and the anticipated increase in economic development related to the Bering Sea fishery. The most significant market issue to be addressed during the Phase I Reconnaissance is the potential for power sales to Trident Seafoods. Trident currently uses diesel generation to meet a power demand of 6.7 to 7.0 MW for 250 days per year. The Phase I Reconnaissance will include the development and execution of a power sales agreement with Trident, with the goals of reducing carbon emissions, providing revenue for utility operations, and supporting the Bering Sea fishery. The economic assessment task of this project will assess other opportunities for the sale of power and heating. A letter of support for the Hot Springs Bay Valley geothermal project from Trident Seafoods Corporation is attached to this application. 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 AEA has identified the potential for both shallow and deep resource development alternatives at Hot Springs Bay Valley. This means that a variety of technical solutions must be considered as part of the reconnaissance and feasibility study. Similarly, issues related to capacity, integration, delivery methods and potential barriers will be addressed by the Phase I Reconnaissance, as described in Section 2.3 of the grant application instructions. 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. Surface rights for the proposed Hot Springs Bay Valley geothermal site, right of way for access to the site, and right of way for transmission lines and ancillary facilities, are all owned by Akutan Village Corporation. The sub-surface rights to the geothermal resource are also owned or selected by Akutan Village Corporation. Land required for transmission, distribution, and ancillary facilities within the City, are owned by the City of Akutan. Akutan Village Corporation is very supportive of efforts to develop the Hot Springs Bay Valley geothermal resource. The Corporation and the City intend to execute a development agreement which will affirm the City’s right to access and control land required for the project. The agreement will also address potential financial Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 60 9/3/2008 considerations such as leasing and royalty payments. Akutan Village Corporation has confirmed its intention to provide access to, and control of, the project site in a letter attached to this grant application. It should also be noted that the City of Akutan is currently preparing an annexation request to the State of Alaska Local Boundary Commission which will expand the City by 133 square miles, including the Hot Springs Bay Valley project site. This request will be presented to the Local Boundary Commission in the near future. Other issues, if any, related to land ownership will be addressed in the preliminary feasibility report, as required by Section 2.3 of the grant application instructions. 4.3.3 Permits Provide the following information is 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 This information will be identified in the preliminary feasibility report, as defined in Section 2.3 Phase I – Reconnaissance Requirements of the grant application instructions. 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 This information will be identified in the preliminary feasibility report, as defined in Section 2.3 Phase I – Reconnaissance Requirements of the grant application instructions. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 60 9/3/2008 • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system The City has examined a variety of sources for cost information related to both the overall Hot Springs Bay Valley geothermal development project, and the reconnaissance phase described in this grant application. These sources include industry standards, consultant estimates, project reports for Alaska projects such as Mount Spur, Chena Hot Springs, Manley Hot Springs and Pilgrim Hot Springs, and recent estimates developed by AEA as input for the statewide energy plan. An analysis of available information indicates there is a wide range of potential costs associated with the exploration and development of geothermal resources. This variance is largely due to the number of site-specific variables, the recommended technical solutions, the proposed resource applications, and regional/local cost of goods and services. As a starting point, the City is relying on the geothermal cost matrix developed for AEA by Hattenburg Dilley & Linnell (hereafter the “HDL Report”) as input for the statewide energy plan. This report identifies 10 assumptions that were considered in the development of data components and cost estimates for 16 potential geothermal projects in Alaska. The Hot Springs Bay Valley geothermal project is identified as one of those projects. The HDL Report presents estimates for both shallow and deep resource use at Hot Springs Bay Valley. The HDL estimated costs for total project development (excluding transmission lines) are: • Akutan – Shallow: $23 - 49 million • Akutan – Deep: $16 - 45 million Costs related to the exploration and confirmation requirements of the Phase I Reconnaissance project, as identified in the HDL Report, are as follows (in $ million): Resource Use Project Tasks Totals Prospecting Exploration Drilling Well Testing • Akutan – Shallow 0.3 – 0.7 1.5 – 3.5 0.1 – 0.5 1.9 – 4.7 • Akutan - Deep 0.3 – 0.7 1 – 4 0.1 – 0.5 1.4 – 5.2 In estimating the costs for the Phase I Reconnaissance of Hot Springs Bay Valley, the City has considered the following factors: 1. Previous investigation of the site, along with local knowledge, identify Hot Springs Bay Valley as easily accessible by sea and well suited to exploration and drilling. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 60 9/3/2008 2. Akutan Harbor and Hot Springs Bay provide excellent conditions for the transport, mobilization and demobilization of drilling equipment. 3. On-site prospecting will help to determine the potential and desirability for shallow and deep use of the resource, which in turn, will effect the type and amount of exploratory drilling to be completed. 4. The greatest variation in the potential cost of the Phase I reconnaissance is for exploratory drilling (between $1 million and $4 million according to the HDL report). Prospecting and well testing present a narrower range of potential cost, and are considered relatively equal for evaluating the shallow and deep use alternatives (a range of $400,000 to $1.2 million for both alternatives). 5. The high cost of exploratory drilling can potentially be offset in several ways: a. Drilling cost can be shared for multiple projects, for example between Makushin and Hot Springs Bay Valley. This potential may exist in summer 2009, if Unalaska proceeds with its proposed drilling of the Makushin resource. The City is exploring this and other opportunities for cost sharing. b. Drilling equipment and support are available from a variety of federal agencies, including BLM, USGS, BIA and others. AEA is coordinating with BLM/USGS for the potential use of their resources for Alaska projects. The City has been talking with BIA for the same purpose. The City will continue to explore this option. c. AEA is proposing to establish a drilling program that could be made available to selected geothermal resource projects. This program could be in concert with BLM/USGS or a State funded effort. d. Renewable energy project funds are available through federal agencies such as DOE. It is likely this funding will be increased over the next several years and may become available to projects like Hot Springs Bay Valley. Although timing is an issue when requesting this type of funding, the City intends to pursue this option. e. As established in this grant application, the City is exploring the potential for establishing a joint development agreement or other business relationship with a qualified development company capable of providing technical, professional, financial and operational support for the development of the Hot Springs Bay Valley geothermal project. The City has had brief contact with GeothermEx, Richmond, California; Ormat Technology, Reno, Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 60 9/3/2008 Nevada; and LandGas Technology, Chicago, Illinois. The City will continue to examine this option as a potential source of funding for field exploration and drilling. Although it is impractical at this time to determine any exact amount of offset or contribution these options will provide for the Phase I Reconnaissance of Hot Springs Bay Valley, the City believes this is a very likely source of matching funds and in-kind support for the project. In view of the above, and with particular reliance on AEA estimates presented by the HDL report, the City of Akutan is requesting the following grant funding: • Prospecting: $485,000 • Exploratory Drilling: $1,750,000 • Well Testing: $200,000 • Preliminary Feasibility Study: $125,000 • Economic Assessment: $35,000 Total Request:$2,595,000 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 information will be identified in the preliminary feasibility report, as defined in Section 2.3 Phase I – Reconnaissance Requirements of the grant application instructions. This information will be identified in the preliminary feasibility report, as defined in Section 2.3 Phase I – Reconnaissance Requirements of the grant application instructions. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The completed Cost Worksheet is attached. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 20 of 60 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. The information required for developing the business plan will be gathered as part of the preliminary feasibility study and economic assessment which are primary tasks of this grant proposal. In addition, the City is exploring the potential for creating a partnership, joint development agreement or other arrangement with a qualified geothermal development company (see Sections 3.4 and 4.4.1, above). This approach may present the best opportunity for viable development of the project and for sustainable operation of the resulting system. The City will use the results of the Phase I Reconnaissance to define the business structures and concepts necessary to complete the detailed business plan. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. This information will be obtained as part of the economic analysis which is a primary task of the grant application. Results of the Phase I Reconnaissance will include recommendations regarding additional project development work. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The State of Alaska has identified the Hot Springs Bay Valley geothermal resource as one of the most promising sites in Alaska for renewable energy development. Initial interest in the project was based on supporting the State’s growing fishing industry, and oil and gas development in the Bering Sea/Aleutian region (see Motyka and Nye, p. 3). Since those earlier investigations, not only has the Bering Sea/Aleutian fishery expanded exponentially, but the prospects for off shore drilling are greatly increased as the U.S. pursues additional oil exploration as part of changing energy and economic policy. These same policy shifts have placed renewable energy development at center stage for relieving the national dependence on oil, and there is a new acceptance of the potential applications of geothermal resources for district heat, alternative energy development, greenhouse farming and tourism. The benefits described above clearly support the long held belief that Alaska’s geothermal resources should be explored and developed to the highest extent possible, Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 21 of 60 9/3/2008 in keeping with technical and economic viability. With identification of the Hot Springs Bay Valley geothermal resource as one of the most promising sites in Alaska, it is clearly in the public interest to further assess its development potential by completing the Phase I Reconnaissance described in this grant application. The primary benefits of the Phase I Reconnaissance will be in determining the value of this economic asset and deciding whether to proceed to the next phase of development. The benefits of completing resource development at Hot Springs Bay Valley and the contours of a business plan, including funding options necessary to develop the resource, will be identified in the preliminary feasibility report, as defined in Section 2.3 Phase I – Reconnaissance Requirements of the grant application instructions. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls The City of Akutan is requesting total grant funding of $2,595,000 for the Phase I Reconnaissance project described in this grant application. The attached grant Budget Form provides a task and funding source breakdown. As presented in Section 4.4.1, Project Development Cost, above, the City has identified two potential sources of matching funds and/or capital contributions from other sources. These are: • Federal/state agency support of field investigation and drilling • Capital investment through a joint development agreement or other arrangement with a private sector partner The City is aggressively pursuing these options; however, there are no commitments in hand at this time. Therefore, the City has not offered any matching funds or contributions for this project. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 22 of 60 9/3/2008 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 23 of 60 9/3/2008 Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 Renewable Energy Fund ation AEA 09-004 Grant Application Page 24 of 60 9/3/2008 Grant Applic About RMA Consulting Group “Consulting services for growth, transition and structural change” RMA Consulting Group is an Alaska Company founded in 1998 by Ray Mann, former Public Works Director, Municipality of Anchorage. The company specializes in management and technical service for state/local government and business. Our Public Services consulting practice focuses on the needs of Alaska’s communities for interim management, project support, permitting, regulatory compliance, policy/legislation development and infrastructure development. We provide a multi-discipline team with more than 30 years experience in government and utility operations in Alaska. We also provide a variety of engineering services through our partnership with Kennedy/Jenks Consultants, a nationally recognized firm specializing in the areas of transportation, maritime ports, airports and energy services. We can address legal and regulatory issues related to energy projects in Alaska through our partnership with Dorsey & Whitney LLP, a legal services firm specializing in energy related projects, licensing/regulation, transactional structuring, and tax-exempt financing. Our strong interest is in developing relationships with cities and boroughs that are implementing infrastructure projects related to utilities, transportation, renewable energy and community services. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 25 of 60 9/3/2008 Company Capabilities Overview RMA Consulting Group (RMA/CG) provides integrated business services to companies and government agencies that require a managed approach to growth, transition and mission/structural change. We offer services for organizational and program assessment; strategic, business and action planning; management/leadership development, and team building. Implementation services include program/project management, process redesign, performance improvement and change management in both on-site and outsourced environments. Through a well-defined planning process and in-depth organizational analysis, we gain a strategic view of our clients’ management and operations environment. This allows us to develop targeted solutions to improve management, administration, financial control, product and service delivery, and customer relations. Successful implementation insures that our clients obtain the most from their current capabilities and capitalize on future opportunities. Services RMA/CG consultants and project managers have extensive experience in both public and private sector management. This provides us with a unique business perspective focused on customer satisfaction, service delivery and cost-effective solutions. Our “targeted solutions” approach provides the same effective integration of advice, professional resources and implementation support for a five member leadership team as for a multi-national infrastructure project. The goal of every assignment is to create an environment for management and operational sustainment. We feel this is best achieved through the integration of services that support a planning – management – implementation lifecycle. Planning: Developing management strategies and stakeholder consensus. • Organizational and Program Needs Assessments • Strategic, Business and Action Plans • Capacity/Skills Inventory • Process/Productivity Analysis Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 26 of 60 9/3/2008 Management: Building individual and team skills, strengthening organizational capacity and improving decision-making. • Leadership Development • Executive Coaching • Team Building • Consensus Development • Communications • Skills/Capacity Training Implementation: Applied resources to support strategic or action plan implementation and program/project management. • Outsourcing and on-site staffing for executive management, program/project managers and technical leads • Process Redesign • Performance Improvement • Change Management • Risk Management – Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 43 of 60 9/3/2008 Cost Worksheet per application for Section 4.4.4 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 44 of 60 9/3/2008 Application Cost Worksheet Hot Springs Bay Valley Geothermal Reconnaissance Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Continuous for estimated 30-year project life. Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other 1 hydropower; 3 diesel ii. Rated capacity of generators/boilers/other Hydro: 105 kW; Diesel: 70 kW, 125 kW, 150 kW iii. Generator/boilers/other type Hydro Plant: 1 Canon Industries hydro, 1 Perkins Diesel Diesel Plant: 1 Caterpillar diesel, 1 John Deere diesel iv. Age of generators/boilers/other 1 Canyon hydro, 15 years; 2 Perkins diesel, 10 years; 1 John Deere diesel, 2 years. v. Efficiency of generators/boilers/other 70% - 80% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor FY 08 - $79,697 ii. Annual O&M cost for non-labor FY 08 - $281,118 (including fuel) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 692,000 kWh generated; 560,000 kWh sold ii. Fuel usage Diesel [gal] FY 08: 48,000 gallons #2 diesel Other iii. Peak Load 108 kW iv. Average Load 84 kW v. Minimum Load 50 kW vi. Efficiency 14.14 kWh/gallon vii. Future trends Significant 5-10 year growth to support new infrastructure, Trident Seafoods and other fishery expansion. 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 45 of 60 9/3/2008 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 42,870 gallons #1 and #2 diesel ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 3. Proposed System Design a) Installed capacity 10-15 MW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 4. Project Cost a) Total capital cost of new system b) Development cost $45,000,000 c) Annual O&M cost of new system d) Annual fuel cost 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation b) Price of displaced fuel c) Other economic benefits d) Amount of Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 46 of 60 9/3/2008 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 47 of 60 9/3/2008 Grant Budget Form per application form Section 6 Renewable Energy Fund Grant Application BUDGET INFORMATION BUDGET SUMMARY: Hot Springs Bay Valley Geothermal Reconnaissance Milestone or Task Federal Funds State Funds Local Match Funds (Cash) Local Match Funds (In‐Kind) Other Funds TOTALS Prospecting $485,000.00 $485,000.00 Exploratory Drilling $1,750,000.00 $1,750,000.00 Well Testing $200,000.00 $200,000.00 Feasibility Study $125,000.00 $125,000.00 Economic Assessment $35,000.00 $35,000.00 $2,595,000.00 Milestone # or Task # BUDGET CATAGORIES: 1 23456TOTALS Direct Labor and Benefits $0.00 Travel, Meals, or Per Diem $0.00 Equipment $0.00 Supplies $0.00 Contractual Services $485,000.00 $1,750,000.00$200,000.00$125,000.00$35,000.00 $2,595,000.00 Construction Services $0.00 Other Direct Costs $0.00 TOTAL DIRECT CHARGES $485,000.00 $1,750,000.00$200,000.00$125,000.00$35,000.00$0.00$2,595,000.00 AEA 09-004 Grant Application Page 48 of 60 9/2/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 49 of 60 9/2/2008 An electronic version of the entire applications per RFA Section 1.6 (Disc provided separately.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 50 of 60 9/3/2008 Governing Body Resolution per RFA Section 1.4 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 51 of 60 9/2/2008 Grant Applicat Renewable Energy Fund ion AEA 09-004 Grant Application Page 52 of 60 9/3/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 53 of 60 9/3/2008 Task and Milestone Schedule Renewable Energy Fund Grant Application Hot Springs Bay Valley Geothermal Project Phase I – Reconnaissance Task and Milestone Schedule Task/Milestone Months 1 2 3 4 5 6 7 8 9 10 11 12 Project Start Up Procurement Prospecting Exploratory Drilling Well Testing Preliminary Feasibility Study Economic Assessment Project Review/Wrap-up AEA 09-004 Grant Application Page 54 of 60 9/2/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 55 of 60 9/2/2008 Confirmation of Site Control Letter from Akutan Village Corporation Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 56 of 60 9/2/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 57 of 60 9/3/2008 Letter of Support Trident Seafoods Corporation Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 58 of 60 9/2/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 59 of 60 9/2/2008 Certification Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 60 of 60 9/3/2008