Loading...
HomeMy WebLinkAboutBarrow Atqasuk Transmission Line final AppRenewable Energy Fund Grant Application 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 I GrantApp.doc Form Application Cost Worksheet _ Grant Budget Form Costworksheet.doc GrantBudget.xls Grant Budget GrantBudgetlnstr.pdf Form Instructions 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. Summary of Cost information that should be addressed by applicants in preparing their application. 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. 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. AEA 09-004 Grant Application Page 1 9/2/2008 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) North Slope Borough Type of Entity: Municipality Mailing Address Physical Address P.O. Box 69 1274 Agviq Street Barrow, AK 99723 Barrow, AK 99723 Telephone Fax Email 907-852-0467 1 907-852-4115 kc.miller@north-slope.org 1.1 APPLICANT POINT OF CONTACT Name I Title K.C. Miller Grants Administrator Mailing Address P.O. Box 69 Barrow,_ AK 99723_ Telephone Fax Email 907-852-0467 907-852-4115 kc.miller@north-slope.org I 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); 1.2.2. Attached to this application is formal approval and endorsement for its project by Yes 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 ) 1.2.3. As an applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant agreement. 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the application.) AEA 09-004 Grant Application Page 2 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application 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. _ The project is a Feasibility Analysis and Conceptual Design of an overhead power transmission intertie between a regional center, Barrow, and a small village, Atqasuk. The village of Atqasuk will benefit from a natural gas resource in lieu of diesel fuel for both power and heating. The project will include the following: • Produce concept designs • Evaluate economic feasibility of concepts • Estimate construction costs • Resolve land and site control issues • Identify and mitigate environmental issues • Assess permitting requirements • Evaluate short and long term socioeconomic benefits and impacts • Develop a construction cost estimate based on a 60% design level AEA 09-004 Grant Application Page 3 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. The NSB recently commissioned a preliminary feasibility study entitled `Energy Options for the City of Atqasuk" (Attachment A, disk copy). The recently completed study assessed the alternative energy options that could reduce or replace Atqasuk's dependence on diesel fuel for its power and heating needs. Natural gas from the Barrow gas fields proved to be the most viable energy source. An economic analysis was performed on: a) shipping natural gas from the Walapka gas field to Atqasuk via pipeline, b) shipping compressed natural gas (CNG) from Walapka to Atqasuk, c) transmitting electric power from a gas fired power plant in Barrow to Atqasuk via a new overhead transmission line to supply electric power and continue the use of fuel oil for heating, and d) transmitting electric power from a gas fired power plant in Barrow to Atqasuk via a new overhead transmission line to provide both power and heating. Alternative "d" proved to be the most attractive. This application requests funds to: • Evaluate and select the power transmission option (HVDC vs. 3 phase AC) via comparative lifecycle cost analysis, technical viability and system reliability. • Evaluate the use of composite poles in the Arctic. The poles are 1/3 the weight and 4 to 5 times the strength of wood poles. They can also be shipped in 25 foot sections. • Evaluate the capacity of the Barrow Utilities & Electric Cooperative Inc. power plant for the additional demand. • Determine business structure, rates and O&M responsibilities • Evaluate and select the optimum 70 mile long route from Barrow to Atqasuk. • Evaluate the impact of the added demand on the Barrow natural gas reserves • Evaluate land ownership issues. • Evaluate environmental issues • Identify permit requirements • Determine design parameters for wind and ice loads in arctic conditions • Develop the design and cost estimate of a power transmission system that will serve Atqasuk, Walakpa Gas Field and also facilitate a future expansion to Wainwright The North Slope Borough will be the primary participant and will utilize internal expertise and retain external consultants and contractors that have special expertise in designing power transmission systems, building remote facilities in the high arctic, performing environmental assessments in the NSB, permitting this kind of facility in Alaska, and evaluating natural gas production impact and reservoir potential. AEA 09-004 Grant Application Page 4 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. The North Slope Borough is seeking $400,000 from the AEA Renewable Energy Fund for this study. The NSB will participate with resources valued at $100,000. The capital cost of the construction project as estimated in the preliminary study to be $14 million (not requested in this submission). 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public. The economic benefits based on 2006 prices were estimated to be $1,474,313 per year. They are projected to be $1.8 million today. This is the difference between total annual fuel and operating costs for the proposed intertie using natural gas vs. continuing with the use of diesel fuel in the village. Please see "Energy Options for the City of Atqasuk" (Attachment A, disk cony) for additional details on the economic benefits. Other benefits to the public include: • Conversion to a long term stable priced energy source • Elimination of outsourcing community funds for the importation of power and space heating energy • Increased power reliability and quality • Increased Barrow and Atqasuk system -wide efficiency • Improves future feasibility of building a new power plant at the Walakpa gas field (17 miles south of Barrow), an unpopulated area • Less air pollution in the village • Lower probability of fuel spills in the village • Reduction in fuel tank regulation due to decreased village storage requirements • Reduced need to convert to ULSD fuel in the village by retaining existing plant • Increased safety in the village with backup power from the existing power plant • Less noise in the village • System design for future extension of the grid to other communities such as Wainwright, or other energy sources to other communities in the Arctic. 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.) $14,000,000 2.5.2 Grant Funds Requested in this application. $ 400 000 2.5.3 Other Funds to be provided (Project match) $ 100,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 500,000 2.5.5 Estimated Benefit (Savings) $1.8 million 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) AEA 09-004 Grant Application Page 5 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant 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 project will be directed by a steering committee that is comprised of two representatives from the City of Atqasuk and two representatives from the NSB. The representatives from Atqasuk are yet to be determined (Attachment B, Organizational Chart) Key personnel include: • Kent Grinage, North Slope Borough Department of Public Works, Division Manager, Fuel and Natural Gas Division. Mr. Grinage has a long record of interest and experience with conventional and alternative energy projects for the NSB and other employers. His resume is included in Attachment C, Resumes. • Brett Goodwin, North Slope Borough Department of Public Works, Division Manager, Utility Systems is responsible for the Atqasuk Electric power and transmission system for the Borough. His resume is included in Attachment C, R6sum6s. The Project Manager will be Lee Johnson, P.E. Consulting Engineer, of Leland A. Johnson & Associates. Mr. Johnson was the principal engineer on the recently completed Atqasuk Energy Assessment Study which developed the background for this grant application. Mr. Johnson also has a long history of experience in the traditional and alternative energy world, ranging from project assignments in the oil & gas industry in Alaska, Norway and Russia to a current and ongoing assignment with Alaska Village Electric Cooperative's alternative energy projects in numerous western Alaska villages. His resume and related experience is included in Attachment C, R6sumes. 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.) Start of project Establish route corridor Determine land ownership along corridor Evaluate environmental issues and/constraints Conduct concept level geotechnical investigation Produce design concepts Determine optimum transmission design with life -cycle cost analysis Produce 60% design review documents Finalize 60% design documents July, 2009 August, 2009 September —October, 2009 September — October, 2009 October -November, 2009 November — January, 2010 February — March, 2010 April -May, 2010 June, 2010 * see Attachment D, Proiect Schedule for schedule details AEA 09-004 Grant Application Page 6 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 3.3 Project Milestones* Define key tasks and decision points in your project and a schedule for achieving them. Grant funds received July 1, 2009 Negotiate contracts with consultants July 1-30, 2009 NTP to consultants August 1, 2009 Establish transmission corridor August 31, 2009 Identify land, environmental and geotech issues November, 2009 Produce design concepts January 31, 2009 Finalize comparative LCCA and socioeconomics of concepts March 31, 2010 Finalize and submit 60% design documents to NSB and AEA June 1, 2010 Publish 60% design package June 30, 2010 * see Attachment D, Project Schedule for milestone details 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. kev personnel. contractors. and suppliers as an attachment to your application. Kent Grinage and Bret Goodwin, NSB Lee Johnson, P.E. , Leland A. Johnson & Associates Charlotte Amling , NSB K.C. Miller, NSB NSB Planning Department Staff (to be determined) Robert J. Ritchey, Sr. Scientist ABR Betty A. Anderson, Sr. Scientist ABR Janet G. Kidd, Sr. Scientist, ABR Eric L. Worthington, Manager, Norcon Albert Sakata, P.E., Sakata Engineering Services Duane Miller and Associates Pete Stokes, P.E. PRA Leah Cuyno, Economist, Northern Economics Barrow Utilities and Electrical Cooperative Project Steering Committee Project Manager Project Administrator Grant Administrator Establish ROW and site control Environmental and permitting Environmental and permitting Environmental and permitting Constructability and cost estimating Power line design Geotechnical investigations Gas reservoir and production analysis Economic Feasibility and Socioeconomic Impact Local Utility * see Attachment C, Resumes, and Attachment E, Company Profiles for details Section 3.5: Missing in application AEA 09-004 Grant Application Page 7 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application 3.6 Project Risk Discuss potential problems and how you would address them. There are few apparent risks in comparison to the substantial benefit. Environmental issues may be identified that require special attention. Steller's Eiders nest south of Barrow, and are listed as a threatened species. Their existence and patterns are well documented, so we will utilize this knowledge from the beginning of the project. The project team consists of ABR Environmental Research & Services, who have significant experience with birds and wildlife in the study area, and are familiar with the BLM and Fish and Wildlife requirements. Our intent is to develop a transmission route using a team approach by having the engineer work in conjunction with the local government, transmission line contractor and estimator, environmental scientists familiar with the area and jurisdictional agencies, and a soils engineer familiar with the Arctic permafrost. This should insure the selection of an optimal transmission route. We would then approach the appropriate state and federal agencies and present our routing for comment. Based on their input, the original route, technology or methods may be adjusted. The agencies may require us to conduct surveys or provide other data to strengthen our design. The end goal is to produce a feasible plan for a transmission system that has no "fatal flaws" and can proceed to final design and construction. AEA 09-004 Grant Application Page 8 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application SECTION 4 — PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project The natural gas reserves in the Barrow Gas Fields are estimated to provide energy for 120 years at present consumption levels. The limiting factor at present is producing capacity. The NSB is currently conducting a modification and upgrade program to the gas fields. Additional wells (and thereby production capacity) will be added in 2010. Gas availability is unlikely to be a concern for Atqasuk because the village demand will be less than 5% of the current demand by Barrow. If this intertie were extended to other villages, the issue could be more important. In a broad, longer term view, other resources may be enhanced by this intertie. In the neighboring village of Wainwright, coal -bed methane has been discovered and may eventually be a viable resource. Further down the coast lie the western arctic coal reserves, a source of high BTU low sulfur coal in vast quantities. These resources make this project even more attractive, as it may well be the first link in a regional or statewide energy distribution system. The western arctic coal reserve contains over 10% of the world's coal resources, and could easily power the entire state and beyond. Presently, no other meaningful resources are available for Atqasuk. Wind and local coal and natural gas were evaluated and were determined to be insufficient or not economically feasible. See "Energy Options for the City of Atqasuk" (Attachment A, disk copy) Project Tasks • Produce concept designs • Evaluate economic feasibility of concepts • Estimate construction costs • Resolve land and site control issues • Identify potential environmental issues • Assess permitting requirements • Evaluate short and long term socioeconomic benefits and impacts • Develop a construction cost estimate based on a 60% design level AEA 09-004 Grant Application Page 9 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application 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. ATQASUK • Distribution System — The existing distribution system is a three phase overhead system configured with two feeders fed from the power plant. Power is generated at 480 Volts and stepped up to 4,160 / 2,400 Volts with a 1,000 KVA station transformer connecting each overhead feeder. • Power Plant — The power plant consist of two structures housing five generators with a total capacity of 3,370 KW. The first generator building includes 2, 3508 Caterpillar diesel gensets rated at 450 KW each and one 3512 Caterpillar diesel genset at 650 KW. Adjacent to the first generator building was installed a prefab metal building that contains 2, 3512 Caterpillar diesel gensets rated at 910 KW each. • Fuel System — Diesel fuel is barged once a year for Atqasuk into Barrow. This year it was landed into Barrow at $4.43 / gallon. From Barrow the fuel is flown into Atqasuk in several lifts over a year time. Currently the air freight cost landed in Atqasuk is $1.70 / gallon. Once in Atqasuk the Fuel is delivered by truck to the NSB tank farm or the smaller power plant tank farm. The power plant tank farm is located adjacent to the power plant and consists of five horizontal tanks with a capacity of 17,677 gallons each for a total capacity of 88,385 gallons. The power plant tank farm receives additional fuel as required from the NSB tank farm via the fuel truck. IMEN :1IMOYd/ • Barrow's electrical power is provided by Barrow Utilities and Electric Cooperative, Inc. (BUECI). The Co-op purchases natural gas from the NSB at the wholesale price of $1 MCF, ($1 million BTU). It produces electricity and retails it to its customers at $.11 per kWh. • The Barrow power plant houses seven generators with a total capacity of 20,500 KW. This includes two Solar Taurus gas turbines rated at 5,000 KW each, three Solar Centaur gas turbines rated at 2,500 KW each, and two Caterpillar reciprocating gas units rated at 2,000 KW each. 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. The existing energy resource used for Atqasuk is diesel fuel. The cost of diesel in Atqasuk is extra ordinarily high because Atqasuk is an inland village. The fuel is first barged to Barrow, the flown to Atqasuk. Overland fuel transport is used when transport services are available. The current delivered cost is $6.13 per gallon. Barrow is fueled entirely by natural gas. The BUECI power plant reportedly has enough excess generating capacity to serve the relatively small additional demand from Atqasuk. AEA 09-004 Grant Application Page 10 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Barrow has used local natural gas sources since the sixties to meet its power and space heating needs. Atqasuk, on the other hand, has used imported #1 High Sulfur Arctic Grade Diesel fuel since its incorporation in the seventies to meet their energy needs. The proposed 70 mile electric power intertie between Barrow and Atqasuk may significantly reduce the cost of power to the customers in the Village of Atqasuk. Currently the price of electric energy in Barrow is just under $0.11 per kWh. Diesel generated electrical energy produced in Atqasuk is subsidized and charged at $0.15 per kWh, up to 600 kWh per month. to $0.35 per kWh for electricity consumed above 600 kWh. Commercial usage starts at $.20 per kWh up to 1,000 kWh, and then goes to $0.30/kWh from 1,001 to 10,000 kWh and $0.35 for anything above 10,000 kWh. The average Village residential customer consumes 727 kWh per month. Therefore, an average homeowner is anticipated to save about $54 per month with the intertie. The real cost of generating electricity in Atqasuk is $0.84 per kWh. Besides fuel cost savings, the North Slope Borough would also experience non -fuel cost savings by eliminating the daily operation of the power plant, the highest cost municipal service provided in Atqasuk. Some of the savings could go toward providing other non -energy critical needs in the community of Atqasuk. In addition to the savings to the residents of Atqasuk and the North Slope Borough, the intertie would increase the power demand at the Barrow power plant. This should make the Barrow operation more efficient and reduce the electric rates in Barrow. BUECI increased their electric rates last year due to the decrease in electrical demand caused by a decrease in the local population since 2001. In 2001 BUECI's peak load was at 10,000 kWh. Last year it was only 8,100. The peak electrical load for Atqasuk in 2007 was 603 kWh. In additional to power cost savings, it was found in the Atqasuk Energy Options report that the intertie could reduce the cost of space heating in the community as well. The current landed price of Diesel in Atqasuk is $6.13 per gallon, which equals $44 million BTU. Compared to electricity at $0.11 per kWh which equals $32 million BTU. As important as the direct cost savings would be the ending of Atqasuk's reliance on costly imported diesel fuel to a local energy source that has shown little pricing variation since its start up in the sixties. Further, the future use of fuel oil will not only be impacted by price instability, but will more than likely be accompanied by enhanced regulations and penalties. AEA 09-004 Grant Application Page 11 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant 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 • Delive methods The natural gas resource is not renewable, but the inter -tie connecting two communities qualifies for the AEA Renewable Energy Grant Program. The economic benefit is very significant in that expensive diesel fuel energy is being replaced by Natural gas which is free at the wellhead and wholesaled to the local co-op at $1 per MCF or $1 million BTU. • Atqasuk will have a peak demand of 603 kWh and an average daily demand of 384kWh. • The anticipated capacity factor is 14.5. This combines the installed capacity at both BUECI and Atqasuk and the average daily usage of both communities. Annual generation at Atqasuk is expected to be 3.4 million kWh. At Barrow 46.4 million kWh • Annual generation for Atqasuk is expected to be 3,342,741 kWh. • There are no anticipated barriers. • The Atqasuk integration will be accomplished by adding a three phase circuit and a step- up transformer at the BEUCI power plant to energize the transmission line to Atqasuk. In addition, a recloser would be added to sectionalize the line in the event of a line fault. At Atqasuk, a step down transformer and an automatic recloser would provide for automatic startup of the back-up diesel plant in Atqasuk. In the case of an HVDC transmission line an inverter would be required to convert AC to DC at BEUCI and a rectifier to convert DC to AC at Atqasuk. The distribution system and service panels in Atqasuk will be upgraded to support the increased power that is required to provide electric heating in addition to the present demand for non -heating power. ■ Delivery methods are covered above AEA 09-004 Grant Application Page 12 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 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. Organizations, communities and others that will be impacted by this proposed project include: • City of Barrow • City of Atqasuk • Arctic Slope Regional Corporation, (ASRC) • Ukpeagvik Inupiat Corporation, (UIC) UIC and ASRC supported this project • Bureau of Land Management • Native Allotments The Community of Atqasuk supported a transmission line project through Resolution 81-3 in 1981 (Attachment F) and representatives from the village were on the project team during the Atqasuk Energy Assessment Study performed in 2008. The Community will also have two representatives on this project that will provide oversight and local input throughout the project. Both UIC and ASRC provided letters of concurrence in 1981. They are also obligated by the National Petroleum Reserve Alaska Act of 1976 and the Barrow Gas Field Transfer Act of 1984 to provide to the North Slope Borough right-of-way easements to permit the Borough to supply energy to Barrow, Wainwright and Atqasuk. The transfer Act specifically mentions "...including the transmission of electricity from the Barrow Gas Field, or from any other source of energy chosen by the North Slope Borough, to supply Barrow, Wainwright and Atqasuk." It is our intent to keep all landholders involved throughout this project by holding public meetings. The most significant concern may be Native Allotments. The Native Allotments in the project area have been well documented by the North Slope Borough. Since we are dealing with a technology that is flexible, we will avoid Native Allotments through the routing of the line. It is our intent to develop the initial power line route as a group effort, involving the engineers, contractor, environmentalist, NSB Planning Dept. and local citizens. By identifying potential issues and dealing with them as early as possible, we will avoid them in the future when they will be more costly and time consuming. F-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 One of the aspects of this feasibility study will be to determine which permits will be needed and from which entities. These may include: U.S. Army Corps of Engineers; Clean Water Act; Section 404 permit (wetlands permit); U.S. Fish and Wildlife Service (USFWS); Fish and Wildlife Permit for Threatened Species (required prior to conducting TES surveys, usually 60 days lead time); BLM Right -of -Way; North Slope Borough Development Permit. AEA 09-004 Grant Application Page 13 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 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 • Threatened and Endangered Species —The proposed power line route crosses habitats used by breeding and migrating Steller's and Spectacled eiders, which are listed as threatened species under the Endangered Species Act (ESA). The route through these habitats will require consultation with the USFWS prior to construction to evaluate potential effects on threatened species, and to eliminate or mitigate potential impacts. Because water birds, including eiders, are known to collide with power lines, understanding the distribution, relative abundance, and key habitats of eiders in the corridor is essential to assessing probable impacts in regard to this consultation. Many of these habitats are also valuable to other water bird species of concern, including the Yellow -billed Loon (which is currently a candidate species for listing under the ESA), the Red -throated Loon, and the Long-tailed Duck. The environmental consultant will synthesize survey information from recent aerial surveys for eiders in the region (USFWS, NSB Steller's Eider surveys [Ritchie et al. 2007]) and review aerial photography for the power line corridor to help determine presence of high -value habitats for water birds, especially the threatened eiders. Following this exercise, an aerial survey may be required to `ground -truth' these habitats and search for eider pairs. Habitat Issues and Wetlands —A general habitat map derived from Landsat imagery has been completed by Ducks Unlimited for most of the North Slope. Other maps (i.e., Nature Conservancy) may be available that can aid in determining habitats important to water birds and other wildlife. Wetlands maps (National Wetland Inventory) are likely available in the area around Barrow, but may not be available for the entire proposed power line corridor to Atqasuk. The proposed feasibility analysis will address this issue. AEA 09-004 Grant Application Page 14 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application 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 • From "Energy Options for the City of Atqasuk" (Attachment A, disk copy) the anticipated project construction cost was $14 million. • This phase for which we are requesting funding is estimated to be $500,000. • The requested funding is $400,000. 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 • From `Energy Options for the City of Atqasuk" (Attachment A, disk copy) the anticipated annual O&M costs are $914,500 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 Atqasuk is an inland village in the North Slope Borough. It has a population of 218 people. There are 57 residential and 61 commercial customers in the village. For the Atqasuk Energy Assessment study, the BUECI residential rate was used for conservative analysis. For this effort we will look at various business structures that may include more favorable rates than the flat residential rate such as a bulk rate. AEA 09-004 Grant Application Page 15 North Slope Borough Atqasuk Transmission Line Renewable Energy Fund Grant Application 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. The North Slope Borough matching funds, in the amount of $100,000, will be provided out of the Borough's operating reserves. See Attachment G. Cost Work Sheet. 4.4.5 Business Plan _I 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. This proposal is a feasibility study and as such does not involve the construction of any infrastructure. However, the very nature of this project will raise questions as to how the NSB would operate such a project if it were built. This will be an item that will be addressed in the study. BUECI holds a Certificate of Public Convenience and Necessity for the production and delivery of electric power in the Barrow area. The NSB holds the same for the City of Atqasuk. There would be several options to consider. One would be the Borough could convey ownership of the Atqasuk Power facilities to BUECI. BUECI in turn could install SCADA equipment to operate the facility remotely and/or hire one of the plant operators to be its custodian in Atqasuk. Another option is the Borough makes bulk purchases of electrical energy from BUECI at a master meter at the transmission line substation in Barrow and operate the line and Atqasuk power and distribution facilities. These and other business structures will be addressed in the study. AEA 09-004 Grant Application Page 16 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. "Energy Options for the City of Atqasuk" (Attachment A, disk copy), is a preliminary feasibility study which was completed in 2008. It concluded electric power generated from the local natural gas energy source in Barrow and transmitted to Atqasuk, replacing imported fuel oil for the production of power and heat, was the most economically attractive option. The study recommended a more detailed engineering and cost study effort that would also evaluate the impact on the BUECI power system and possible relocation of the power plant in the future to Walakpa Gas Field. In order to develop this project further, the proposed project would assemble a team with in-depth experience in the operations, design and construction of power generation and distribution systems in the Arctic. They understand the advantages that the Arctic environs offer, and will use that knowledge to develop the most optimum electric transmission system for North Slope applications. This proposal will also identify potential flaws with its development. We will explore the concept of HVDC single wire ground return and the possible use of composite poles in the Arctic. Success in this area could enhance the development of the vast Western Arctic Coal Resource, with the potential for ultimately transmitting electric energy to Point Lay, Point Hope and the Red Dog Mine. Eventually a grid from Point Hope to Barrow could allow the North Slope Borough to effectively utilize local energy resources, and provide services to its residents, for years to come. AEA 09-004 Grant Application Page 17 North Slope Borough Renewable Energy Fund Atqasuk Transmission Line Grant Application SECTION r 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 economic benefits are estimated to be $1,474,313 per year based on 2006 data. This is the difference between total annual fuel and operating costs for the proposed intertie using natural gas vs. continuing with the use of diesel fuel in the village. Please see "Energy Options for the City of Atqasuk" (Attachment A, disk copy) for additional details of the economic benefits. The preliminary feasibility study was not funded to look at the potential savings over 10, 15, 20 years. The proposed new study requested in this application will address those considerations. Non -economic public benefits: Reduced anxiety due to conversion from a high cost, variable priced energy source (such as fuel oil) to a low cost, more stably priced local energy source, natural gas. Reduced air pollution in the village. More reliable and quality power. Lower probability of fuel spills in the village. Increased safety in the village with backup power from the existing power plant. Reduced noise pollution in the village. SECTION 6 — GRANT BUDGET Tell us how much your total project costs. sources, how much is requested in grant funds, applicant. Include any investments to date and funding and additional investments you will make as an Include an estimate of budget costs by tasks using the form - The North Slope Borough will commit matching funds in the amount of $100,000 from the Borough's operating reserves, Additionally the Borough will provide in -kind contribution of personnel to provide grant and project administration, project oversight, technical input, helicopter support if required, and assistance in right-of-way, mapping, native allotment and other land issues. See Grant Budget, (Attachment E0. AEA 09-004 Grant Application Page 18 Renewable Energy Fund Grant Application 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 (Attachment I) 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 HaroXa Curralf-1, E � r Signature Title Date Chief Administrative Officer North Slope Borough AEA 09-004 Grant Application >G)�Onz �M�0 �- >� n� 3 Cr `{ 0 CDM.Twa) o m o to r l< N. m -n O S C 7 � r- CL �. 7 lA Renewable Energy Fund Grant Application North Slope Borough Atqasuk Transmission Line Attachment C Resumes ► u�i' ^y � �. n i" e0 y w1'• w C w'T. � ? � � b o O w e4 a p0� p0^ �� O 0. .`� y 5 �• O O � O w ------------- . r u C O tp s a �o 0 �o m 9 O t0 O 0 io Z 0 0 v n 0 d 0 A Q 0 a d M O a 9 O 3 d 0 O C C 7 O x m w 11 a m 0 x H fi m m m H- 0 r m T X O %a m n U) n m v C r m Renewable Energy Fund Grant Application North Slope Borough Atqasuk Transmission Line Attachment E Company Profiles ABR environmental research ?'services ABR, Inc. —Environmental Research & Services COMPANY NAME AND ADDRESS ABR, Inc. —Environmental Research & Services (Alaska Business License # 33368) Fairbanks (Main Office) —Mailing Address: P.O. Box 80410, Fairbanks, AK 99708 Physical Address: 2842 Goldstream Road, Fairbanks, AK 99709 Phone: 907-455-6777; Fax: 907-455-6781 Anchorage Office —Mailing Address: P.O. Box 240268, Anchorage, AK 99724 Physical Address: 3380 C Street, Suite 202, Anchorage, AK 99501 Phone: 907-344-6777; Fax: 907-344-6777 Corporate Background ABR, Inc. —Environmental Research & Services (formerly Alaska Biological Research, Inc.) is an Alaskan -owned small business founded in 1976, with headquarters in Fairbanks, Alaska, and branch offices in Anchorage, Alaska, Forest Grove, Oregon, and Greenfield, Massachusetts. ABR specializes in environmental impact studies, NEPA documentation, threatened and endangered species studies, vegetation and wetlands studies, wildlife and fisheries studies, natural resource inventories and surveys, GIS database creation and spatial analyses, permafrost studies, soil and water studies, ecological monitoring and restoration, and bioremediation. Our staff of more than 30 professional scientists includes wildlife and fishery biologists, ecologists, botanists, wetland scientists, an oceanographer, and environmental scientists. Many of the senior scientists at ABR have over more than 15 years of experience with the company, and over 20 years experience with environmental studies in Alaska and elsewhere in the USA. In addition to our senior scientists, ABR has a complete staff of research biologists, GIS analysts, and technical and support staff. ABR has functioned as GIS data managers for several large, multidisciplinary studies involving multiple contractors. In this capacity, we have provided QA/QC oversight, produced all final mapping products, and provided data archiving and metadata documentation for all GIS products. In Alaska, ABR has undertaken more than 200 major projects ranging from the Arctic Slope to the western Aleutians and old -growth forests in Southeast Alaska. ABR has worked in northern Alaska since 1980 for a range of clients including oil and gas, mining, federal and state agencies, wind power companies, and local boroughs and village corporations. We have conducted many long-term, multi- disciplinary studies that integrate physical and biological data for development planning and permitting. ABR also has worked closely with villages on the North Slope on wildlife and fisheries studies on the Colville River delta, caribou studies across the North Slope and northwestern Alaska involving the North Slope Borough and NANA, and assessments of potential windpower development at coastal (Katktovik, Point Lay, Point Hope) and inland (Atgasuk) villages. ABR, Inc. —Environmental Research & Services Our biologists have many years of experience conducting surveys for threatened and endangered species (Steller's and Spectacled eiders, Peregrine falcons), as well as Yellow -billed loons, now a candidate species for listing under the Endangered Species Act. ABR also has conducted aerial surveys for eiders specifically in the Barrow vicinity for more than 10 years. ABR scientists conducted the first field study on the North Slope evaluating the impacts on birds of new powerlines in the Prudhoe Bay Oilfield in 1986-1987, and more recently ABR conducted a workshop for oil industry, federal, state, and local agencies on developing monitoring studies to evaluate and mitigate impacts of existing and new powerlines on birds on the North Slope. In addition to our wildlife biologists, ABR has several wetlands scientists with significant experience evaluating the unique wetland characteristics found on the North Slope. ABR conducted the first vegetation, wetlands, and water sampling at the pilot project for the Northwest Alaska Arctic Coal site in the 1990s and worked closely with the Arctic Slope Regional Corporation and the Arctic Slope Consulting Group on those projects. ABR has mapped wetlands and vegetation types for a variety of projects on the North Slope, including a proposed road between the Colville River and the Dalton Highway, various proposed oil developments, and at U.S. Air Force radar sites along the coast. ABR has worked effectively with several Native corporations and villages on projects in Arctic Alaska, including long-term studies with the North Slope Borough, fisheries studies in the Teshekpuk Lake and Colville River delta, and developing remediation and rehabilitation procedures and guidelines for local villages. ABR scientists have employed Nuiqsut village residents to assist on fisheries and caribou studies on the Colville delta and in the National Petroleum Reserve —Alaska. ABR also has worked with local schools to present programs on scientific studies being conducted in the region and have used local village youth to assist in our long-term banding programs for Snow Geese near Barrow. Barrow Utilities & Electric Co -Op Serving the Northernmost Community in the United States Barrow Utilities & Electric Coop Inc. (BUECI) is a member -owned cooperative (not -for -profit) organization. It has a nine member board of directors, elected on staggered terms, and an average of 55 full-time permanent employees. Established in 1964, BUECI serves the Inupiat Eskimo village of Barrow, providing electricity, natural gas, water and sewer services to the community of approximately 4,500 people. Duane Miller Associates LLC (907) 644-3200 FAX 644-0507 E-mail duanemiller@alaskageo.com Proposed Staff Duane Miller Associates LLC (DMA) was established in 1982 to provide geotechnical engineering and consultation in the problems unique to Alaska. The Anchorage based firm has evolved to a consultancy of engineers and geologists, all of whom have many years of Alaskan experience. The senior consultants, Principal Engineer, Duane Miller, P.E., and Principal Geologist, Walt Phillips, P.G., and Senior Engineers, Richard Mitchells, P.E., and Jeremiah Drage, P.E., and Senior Geologists Dan Willman and Susan Wilson, have a combined experience on Alaskan projects of more than 140 years. With our office and laboratory located at 5821 Arctic Boulevard near the Anchorage International Airport, DMA's in-house team of 18 includes 12 engineers and engineering geologists. DMA's experience ranges from rural projects to some of the largest oil development efforts in Alaska. DMA has provided geotechnical engineering services for projects across Alaska for over 25 years, and Duane Miller performed his first work in Barrow more than 30 years ago. Duane Miller, P.E. (#3696) will be the Principal Geotechnical Engineer for the project. Duane has been a geotechnical engineer for forty years and has worked on numerous projects in the North Slope Bourough including soil and permafrost exploration and foundation designs in every village. He was the lead geotechnical engineer for the Walakpa gas line foundation design that brings natural gas into Barrow. He has provided geotechnical engineering for most of the pipeline projects in the oil fields of northern Alaska and recently provided the engineering for the electrical intertie between Bethel and Napakiak. References: Jim Vogel, Bristol EEC, (907) 563-0013; David Lockard, AEA, (907) 269- 4541; Greg Magee, ADEC VSW, (907) 269-7613. Resources and Capacity Technology DMA maintains an extensive library of past geotechnical reports that includes data for most of the communities in the state including Wainwright. The laboratory is equipped to perform most primary soil tests along with secondary strength and consolidation tests of undisturbed soils. A walk-in freezer allows for the efficient storage and testing of frozen soils. DMA has the staff and facilities to provide the needed soils exploration and office engineering in a timely manner. Duane Miller Associates LLC DMA exploration experience ranges from small rural projects to large industrial and defense projects. Experience with remote site work has led to the development of specialized exploration and sampling tools for permafrost investigations. We have worked with every Alaskan based geotechnical drilling firm and know each drilling subcontractor's strengths and weaknesses. We implement the use of local excavators or drills when available for the field exploration. DMA has developed and maintains an in-house software library for cold regions foundation design, ranging from codified US Army TM 5-852-4 (Arctic and Subarctic Design Manual) to salinity based primary and secondary creep analysis for ice poor and ice rich permafrost. We also use Temp/W for finite element thermal analyses. We maintain a comprehensive climate database using daily temperature records from key weather stations across the state. These data are used to forecast warming trends for freezing and thawing indices throughout arctic and subarctic Alaska. Past Performance North Slope Community Facilities Power Plant, Wainwright DMA provided geotechnical engineering services for design and construction of the new power plant. We drilled borings, performed tests, measured ground temperatures and developed conclusions for foundation support of the building and fuel tanks. A pile system was designed that accounted for the vibratory loadings from the generators. Material Exploration, Atqasuk DMA performed village wide exploration of soil and permafrost conditions searching for materials suitable for earthwork construction. Exploration included drilling and sampling borings in the village and in the river regime and testing of soils. Alaska Airline Terminal, Barrow DMA explored the thaw bulb that had developed from an at -grade, heated maintentance building and developed an air-cooling system to refreeze the thaw bulb before the at - grade foundation system was constructed. Cultural Center, Barrow Explored the subsurface conditions and developed recommendations for the foundation system. Compared an at -grade insulated and cooled system and pile foundation and inspected pile installation. YEAR 1992-2008 2007-ongoing Norcon Project History BP Alaska Force Account Work Various mechanical and electrical projects for BP Alaska with current yearly value in excess of $50 million BP Alaska Contact John Muller 564-6111 Fort Greely HEMP Protected Power Plant Install 5 each 1.85MW units in shielded power plant and 12,470 feeder circuits and utilidors Contact Jack Dupier 907-317-9809 2008 138 kV reroute to Fort Greeley Substation Doyon Utilities 2008 Glennalllen to Valdez Line Inspection Inspect and correct deficiencies in transmission line from Glennallen as part of a 5 year maintenance program Copper Valley Electric Association Contact Bill Caynor 907-822-8311 2007 Point Worozof 138 kV Tap relocate Chugach Electric Association Contact Dora Gropp 907-563-7494 2007 Chugach High School and Gruening Middle School Generator Upgrade Install a 1 MW 12,470 standby generator that ties to utility feed system for Chugiak. and a 50OKW 480 volt generator moved to Gruening Middle School, Anchorage School District Contact Bruce Shelley 346-5209 2007 Chuaach High School and Gruening Middle School Generator Upgrade Install a 1 MW 12,470 standby generator that ties to utility feed system for Chugiak. and a 50OKW 480 volt generator moved from Chugiak at Gruening Anchorage School District Contact Bruce Shelley 346-5209 _ 2007 69 kV Fort Wainwriaht Relocate GVEA Contact: Greg Wyman (907) 451-1151 South Anchorage Substation 34.5 kV Tap 2007 Chugach Electric Association Contact Dora Gropp 907-563-7494 Pogo Mine Site Power 2005 Construct substation at Pogo Mine. Provide power to mill and facilities. Contact: Greg Wyman (907) 451-1151 Valdez to $1.6 million $4 million 2006-2008 1 BAX/CATIF Construct electrical and communications aspects of large training facility for DOD at Fort Greeley For Doyon. 2004 —2005 Modified Mout & Range Facility Upgrade Provide primary and secondary power to range ops and targets on Ft. Wainwright and at the Yukon Training Area. Provide fiber optic and Cat 6 cable to facilities and to range targets. HC, Twin Peak JV Contact: Dana Hodgson (907) 460-2714 2005 2005 2005 Alyeska Pump 9 138 KV Transmission Line Alyeska Pipeline Services North Tonaas Power Line Upgrade Ketchikan Public Utilities Northern Intertie Healy to Fairbanks 138 KV Transmission Line (Healy portion) Golden Valley Electric Association Contact: Greg Wyman (907) 451-1151 2004 —2005 Infrastructure Support to Modularity — FWW Construct 3-phase underground and overhead power line to modularity site. Install power, communication and fiber. Concrete duct bank to serve barracks and other faculties, install power, communication fiber, terminate, splice and energize. D/A JV Contact: Howard McIntyre 907 479-5754 2004 Pogo Tap Substation Construct 138 Kv switching yard to feed Pogo Mine, including control house, SF6 breakers, 138 Kv ring bus, supports, air break switches, and potential transformers. Golden Valley Electric Association Contact: Doug Ritter 907 452-1151 2003 —2005 Platoon Battle Course — FWW Construct 2 miles 12.5 Kv overhead power line to feed battle course. Provide power and fiber optic to facilties and target emplacements. D/A JV Contact: Tony Musana (907) 479-667 $14.8 million $2.6 million $837,000 $6 million $3 million $2.4 million $5 million 2005 Service High School Generator Upgrade Install a 1 MW 12,470 standby generator that ties to utility feed system. Anchorage School District Contact Bruce Shelley 346-5209 2004 North Pole Industrial Substation $2.6 million Construct 138 Kv and 69 Kv switching and substation for new North Pole power plant and Carney 138 Kv Transmission Line. Golden Valley Electric Association Contact: Dan Bishop 907 451-6910 2003 North Pole Transmission Line Relocate 69 KV and 138 KV Golden Valley Electric Association Contact: Steve 907 451-5656 Wilson Substation 2002 $3 million Construct 138 Kv substation and switching yard to tie in Healy and Fairbanks intertie and the BESS Battery Field facility. Golden Valley Electric Association Contact: Steve 907 451-5656 2001 Jarvis Creek to Missile Defenses 138 KV Transmission Line 2001 Phillips Field Road 69 KV Double Trac, :::]Reconductor Golden Valle Electric Association 2000 —2001 1999 Cooper Landing - Upgrade Hydroelectric plant including turbines and switchgear Combined Cycle Wire Installation New construction 4 miles of 69kV wood pole line with ADSS fiber optic cable, 2 miles with 12.5kV distribution under build, also 397 ACSR conductor. Kodiak Electric Association Contact: Vern Bigsby (907) 486-7700 Conductor: 397 ACSR, 12 Fiber ADSS Schedule: Completed on schedule Musk Ox 69kV Imarovement Project New construction of triple circuit wood pole line to facilitate expansion and new switching arrangement at Gold Hill Substation. Project involved extensive "hot -stick" work on energized 69 kV conductors and switches. GVEA Contact: Greg Wyamn (907) 451-1151 Schedule: Completed on schedule $2.2 million $435,000 $130,000 1998 Mapco Substation $1.2 million Golden Valley Electric Association Contact: Greg Wyman (907) 451-1151 1998 Briggs Tap 115 kV Reroute Project $105,000 New construction of 11 structure steel pole line to facilitate expansion of Anchorage landfill. Project involved re -framing two existing structures and removing old X-towers and conductor. Matanuska Electric Association Contact: Eric Sanford (907) 762-3231 Schedule: Completed on schedule 1998 Swan Lake 115 kV Structure 3176 bypass $246,000 rp oject Add new 105 ft. class H3 wood pole and convert existing 2-pole tangent deadend structure to 3 pole angle deadend structure. Installed new 920' span using Hughes 500D helicopter. Alaska Energy Authority Contact: Stan Sieczkowski (907) 269-3024 Schedule: Completed on schedule 1998 —1999 1997 Alaska Seafood International Facilit New construction of the 201,000 square foot facility located on Raspberry Road in Anchorage. Construction of all electrical, communication, fire and security systems for the facility. CH2M Hill Contact: Tom Ossowski, (541) 758-0235 x 3294 Polar Satellite Converaence Proiect New construction of 2 miles of 5kV and 2 miles of 600V underground cables, 5 transformers to supply power to 4 new 45kW satellite sites and 2 miles of communications duct. Fluor Daniel Alaska, Inc. Contact: Bud Alto (907) 562-1399 $6.7 million $958,000 1997 Eielson AFB Central Substation $886,000 Golden Valley Electric Association Contact: Greg Wyman (907) 451-1151 1997 Eielson AFB Carney Substation $670,000 New construction 20 MVA 138 kV: 12.5 kV Golden Valley Electric Association Contact: Greg Wyman (907) 451-1151 1996 - 1997 1996 —1997 1995 —1996 Swan Lake 115 kV Insulator Changeout $702,000 Insulator changeout on 145 wood pole and meyers steel structures, 25 miles of a 30-mile line. Resag 37/9 conductor, 3000' span Carrol Inlet crossing. Most structures were Hughes 500D access for men and equipment. Ketchikan Public Utilities Contact: Tom Waggoner (907) 225-5505 Schedule: Completed on schedule Tazimina Hydroelectric Project $1 million New construction of 2x800 kW Hydroelectric Power plant new Iliamna. Electrical construction of switchyard, Powerhouse, Control Building, Intake Structure and Underground Transmission I; ne and telephone line. All controls and telecommunications wiring. Design -build fire detection system. INNEC, Inc/HDR Engineering, Inc. INNEC (907) 571-1259 Brent Petrie ex-INNEC, (907) 561-1818 Duane Hippe or Bob Butera, HDR (907) 274-2000 Fort Knox Gold Mine New construction of 4 x 1500 kW Diesel Power plant, 80 MVA Substation with 10 x 13.8 kV Feeders, 6 miles of 138 kV overhead transmission and mine site 13.8 kV distribution and unit substations per MHSA specification. All controls and telecommunications wiring. Fairbanks Gold Mining, Inc. Kenneth Hach (907) 488-4653 Fort Knox Gold Mine 138 kV Transmission Line Construction New construction of 6 miles of wood pole transmission line, terminating in the 80MVA substation which Norcon also constructed. Us Sikorsky S-61 to set four 90 ft. poles on the sic a steep hill. Golden Valley Electric Association Contact: Greg Wyman (907) 452-1151 Scheduled: Project completed 2 weeks behinc schedule. No impact to GVEA. $3.2 million 1994 Beaver Falls 34.5 kV Transmission Line $1.2 million Construction New construction of 4.7 miles of 55 ft. to 75 ft. wood poles along the road Herring Cove to Beaver Fallas and rebuild 1.3 miles of 55 ft. to 85 ft. wood poles Beaver Falls to Silvis. Deadend insulators were 69 kV rated 30,000 lbs. and all clearances were 69 kV. 22 poles, including hauling D1 gravel were set using a Boeing Vertol 107-II. Sock line to Silvis was installed using a Hughes 500D. Ketchikan Public Utilities Contact: Tom Waggoner (907) 225-5505 Schedule: Completed on schedule northe Northern Economics, Inc. KV;`c onomics inc. Northern Economics, founded in Anchorage in 1982, is Alaska's premiere economics consulting firm with extensive experience in energy and utility economics. Throughout its 21-year history, Northern Economics has concentrated on helping governments and private businesses to develop Alaska's economy for present and future generations. Our consultants have developed a long-term, in-depth understanding of theAlaska energy industry and have provided resource evaluation and feasibility analyses, environmental impact assessments, benefit -cost analyses, economic and socioeconomic evaluations of proposed development, and other tools to facilitate industry growth. No one knows Alaska economic issues better. Our energy clients have included the Chugach Electric Association, the Alaska Industrial Development and Export Authority (AIDEA), the Alaska Power Authority, the U.S. Army Corps of Engineers, McGrath Light and Power, the Golden Valley Electric Association, Alaska Division of Energy, and Boroughs and individual communities throughout Alaska. Petrotechnical Resources of Alaska, LLC Oil and Gas Consultants Statement of Qualifications PRA 3601 C Street Suite 822 Anchorage, AK 99503 907-272-1232 min www.petroak.com info@petroak.com INTRODUCTION Petrotechnical Resources of Alaska, LLC (PRA) provides professional personnel to the oil and gas industry. Our multidisciplinary staff of qualified and experienced professionals possess a diverse array of technical capabilities to provide our clients with a full spectrum of geoscience and engineering consulting services. Founded by five petrotechnical consultants who have worked in various capacities within international oil and gas companies over the past twenty years, we have now grown into Alaska's premier oil and gas professional consulting group. We offer petrotechnical services in geophysics, geology, engineering and management. Our staff has a wide range of technical experience in Alaska. Professionals on our staff can be contracted out as individuals for specific, well-defined jobs, or as members of a team tailored to manage larger projects. MISSION STATEMENT Petrotechnical Resources of Alaska ("PRA") is committed to providing high quality, professional geological, geophysical and engineering consultants to the Alaskan oil and gas community. Our employees have extensive Alaskan experience on the North Slope, the interior basins and Cook Inlet. We provide our clients with experienced individuals to fill specific needs or with integrated teams to manage exploration and development projects. PROFILE OF SERVICES REPRESENTATIVE SERVICES WE OFFER OUR CLIENTS INCLUDE: GEOSCIENCE ♦ TECTONIC/STRUCTURE ♦ STRATIGRAPHYI SEDIMENTATION ♦ RESERVOIR MODELING ♦ WELL SITE GEOLOGY ♦ PROSPECT/FIELD EVALUATION G OOPHYS[CS ♦ 2D AND 3D SEISMIC INTERPRETATION ♦ SEISMIC ACQUISITION PLANNING ♦ SEISMIC PROCESSING OVERSIGHT ♦ SEISMIC CORRELATION AND ATTRIBUTE ANALYSIS ♦ SEQUENCE SEISMIC STRATIGRAPHY GEOLOGY ♦ WELL PLANNING ♦ OPERATIONS ♦ WELL LOG CORRELATIONS ♦ PETROPHYSICS ♦ PROSPECT AND FIELD ECONOMICS ♦ CORE DESCRIPTIONS ♦ RiSK ANALYSIS ENGINEERING ♦ DRILLING PROGRAMS ♦ SURVEILLANCE AND WELLWORK ♦ DEVELOPMENT PLANNING ♦ RESERVES AND ECONOMIC EVALUATIONS OTHER ♦ EXPERT WITNESS ♦ REMOTE SENSING PRA CLIENT LIST ♦ ALASKA DIVISION OF GEOLOGICAL AND GEOPHYSICAL SURVEYS ♦ ALASKA DIVISION OF OIL AND GAS ♦ ALASKA VENTURE CAPITAL GROUP, LLC (AVCG) ♦ AURORA GAS, LLC. ♦ BP EXPLORATION ALASKA, INC. ♦ CAITHNESS ENERGY ♦ CONOCOPHILLIPS ALASKA ♦ DOYON, LIMITED ♦ ENCANA CORPORATION ♦ MARATHON OIL COMPANY ♦ PELICAN HILL OIL AND GAS, INC. ♦ PIONEER NATURAL RESOURCES ♦ TRUST LAND OFFICE/ STATE OF ALASKA ♦ UNOCAL ♦ US GEOLOGICAL SURVEY ♦ WINSTAR l:'HEREAS, the continuing inc.•eases in the cost of electricity for home and commercial use have been .l major expense burden to the resident': s� o;: Atkasook, and; ..i0\-AS, the increasing prices of diesel: fuel, need,2d to o, (.•r.-,Ljj the electric generators, will assuredly cause an even greater iacreasa in these cost to consumers, and; WHEREAS, the Utilities Department and other private a;cncies, through research and development, have determined that an elecLric line could be made available to run from Barrow to the Community o% Atkasookc on the Plead River at a great savin;s to the consumers in Atkasook, and; NHEREAS, the residents of Atkasook would benefit directly fron the utilization of this electric line in that; increased reliability, decr,,ased 1 inconvenience, due to power surges affecting appliances, fe%:er powo r outages and less required maintenance, and; i1HEREe1S, the residents of Atkasook would benefit due to a contiLant sourse of power for the school and new homes which will be protected from freeze -ups; i NOW, THEREFORE, BE IT RESOLVED, by the Village Council o At!,aso,);(, that: it does endorse and encourage the North Slope Borough UL'ii'_t•ie.,; Department, to seek and obtain a p;�rmit, from the Bureau of Lana Mz:.nag-1- meat for the construction of said power line. PASSED AND APPROVED this 7 day of 19 c' / SA.": HOPSO:, MYOR - : [ry y+ VILLAGE O1 ATKASOOK VL) - i VILLAGE COUNCIL /&�ALASKA ® ENERGY AUTHORITY Renewable Energy v Fund North Slope Borough — ATQ Transmission Line Attachment G: Application Cost Worksheet 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. F1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 5 b) Rated capacity of generators/boilers/other 450 kW, 450 kW, 650 kW, 910 kW, 910 kW iii. Generator/boilers/other type Diesel reciprocating gen sets iv. Age of generators/boilers/other 1994, 1994, 2002, 2002, 2002 respectively v. Efficiency of generators/boilers/other 14.17 kWh per gal Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $1,023,579 for combined labor and non -labor ii. Annual O&M cost for non -labor 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] 3,394,851 SE ii. Fuel usage Diesel [gal] 239,593 Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends 14.17 kWh per gal Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 69,434 gal ii. Electricity [kWh] iii. Propane [gal or MMBtu] _ iv. Coal [tons or MMBtu] 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. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 /400FALASKARenewable EnergyFund ID) � ENERGY AUTHORITY v. Wood [cords, green tons, dry tons] vi. Other 3. Proposed System Design a) Installed capacity 23,870 kW (Barrow 20,500 kW & Atkasuk 3,370 kW backup) 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. Natural gas 79,700 MCF to produce 3.4 million kWh for Atqasuk electricity 4. Project Cost a) Total capital cost of new system $14.35 million b) Development cost c) Annual O&M cost of new system $240,000 d) Annual fuel cost $674,484 5. Project Benefits a) Amount of fuel displaced for b) c) d) i. Electricity ii. Heat 239,593 gal per year iii. Transportation Price of displaced fuel 69,494 gal per year Other economic benefits Amount of Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale $1,365,234 $1,023,579 (non -fuel o&m cost) 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 2.05 based on annual savings and 20 year facility life Payback 9.73 years (simple: ratio of annual savings over capital cost) RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2 3 O pO 0 0 C S > > rs c < m v D m v, C rr a c7 fD n* GI r ro 3 m a m ! c o� CD a A m n o rr O D n Ln m 3 D a _ O c rD 'Am rn per (A m On ' 3 0 t N rn o rn o N O N O N 0 O O O O (D O 0 0 O O O O O O to ih iA y 7,, O o O O N O Q O O O b O O O o O O iIF 44 N Ow O w Ln r O O O O O OO 00 0 0 A N W w O L rLnj OO O O 0 6 0 O O O t4 t4 Ln A A^ O W O 0)0 V O N V1 O [J I O Ln O O O O O O O O O O O O W V O NO [In 0 LnO OLn O O O O O 4j)- t4 Lc,),O N ih U'i O O Ln O O O O O O O O O O O F� F� N O N Ln O Ln 00 O O O O O O O O O i/F i/► O 00 O D N n O O ih 0 Vl� 1^ 0 0 H PPOPOOPP O co:, CO,CODO O O 181 O O O O O O O 00 — CD -_a 0, CDo ( 0�� 0 w N �- K d CD0 a tTi , a 5 7o CD "' tri t� b m O O 0CD 0 CA cr 'C 0 G N fDCD CD O O CD ~. 0 0 o Cep O �. CD ... CD 0 P. O CD w .,. CD OQ 0 -n T7 c n d LA N V► i/� 4-4 i/). 4/I. 4A i/� 4_4 K CD O O In Ut O In O O lJ7 T a OOOOOOOOO O O O O O O O O O O O O O O O O O O T r C O 7 n iR Q F, i^ -LA- V). -V� v., O N V). t4 I -A tJ: F" F-A N m O N M 00 O 00 N O `- rt O 0 O O 61 � S O U'i Ln 0 Ln O O O O O O o o O 0 0 0 0 0 0 0 0 0 " � o n n S S m -n C 7 Q N —I 0 O O F N W N 4�:- W Ln O A W m N Ln O O CT Ln O Ln N V O v Ln O N O O O O O O O O O O O O O O O O O b O O O O O O O O O IN ■In im v Ln o� m O M 00 D c 0 fD O M of zs fU m ro -n C 7 Q North Slope Borough Renewable Energy Fund Atqasuk Transmission Line ATTACHMENT I Grant Application NORTH SLOPE BOROUGH RESOLUTION SERIAL NO. DRAFT A RESOLUTION AUTHORIZING THE NORTH SLOPE BOROUGH TO PARTICIPATE IN THE RENEWABLE ENERGY GRANT RECOMMENDATION PROGRAM FOR FY 2010 WHEREAS, the State of Alaska, pursuant to Chapter 31 Session Laws of Alaska 2008, has established the Renewable Energy Grant Recommendation Program in new Alaska Statute AS 42.45.045; and WHEREAS, the Alaska Energy Authority is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature for FYI 0; and WHEREAS, the North Slope Borough is a home rule municipal corporation, duly organized and existing under the Constitution and laws of the State of Alaska, and is therefore a local government and "eligible applicant" as defined by AS 42.45.045(1)(1); and WHEREAS the North Slope Borough is in compliance with all federal state, and local, laws including existing credit and federal tax obligations; and WHEREAS, K.C. Miller, Grants Administrator II is authorized as the point of contact to represent the North Slope Borough for the purposes of this application; and WHEREAS, the North Slope Borough wishes to apply for funds to provide for and administer the following project under this program: Project Title Grant Amount Atqasuk Transmission Line Feasibility Analysis/Conceptual Design $400,000.00 WHEREAS, pursuant to AS 42.45.045(d)(1), the Alaska Energy Authority has been directed to evaluate the benefit and feasibility of projects, and prioritize projects that may receive assistance, with "significant weight" being given to the amount of matching funds an applicant is able to provide, and therefore the North Slope Borough proposes to provide a 25% match in the amount of $100,000, NOW, THEREFORE, BE IT RESOLVED: That the Mayor of the North Slope Borough is hereby authorized to submit an application for the grant project listed above, to negotiate and execute any and all documents required for granting and managing grant funds, and to execute any subsequent amendments to said grant agreement to provide for adjustments to the project within the scope of services or tasks, and based upon the needs of the project. North Slope Borough Atgasuk Transmission Line Draft Resolution Page 2 of 2 11►00:191111Ii]gt63 ADOPTED: ATTEST: Sheila H. Burke, Borough Clerk Date: C. Eugene Brower, President Date: Edward S. Itta, NSB Mayor Date: North Slope Borough OFFIC-F OF THE: MAYOR P.O. l3(r, 69 13 :kk(m. AI .1'sh v 997'3 Q07 tii?-2101 1 ext. 'UII Fax: 907 852-0137 Edward S. ltta, Mayor From: Edward S. Itta, Mayor To: Directors Date: July 8, 2007 Subj: Contracting process Since I have been Mayor I have not had to deny any requests for signature on contracts. So I want to thank you and your support staff for a job well done. Due to this success I am delegating to the CAO all administrative authority to manage and to execute contracts. This delegation includes designating the CAO as the purchasing agent and contracting officer under NSBMC 2.36 (Purchasing). It also includes all mayoral authority under NSBMC 2.38 (Real Property Acquisition, Management and Disposal). This authority extends to all pre -contract processes: to all contracts, purchase orders. grants, MOA, leases, conveyances, and other agreements where the North Slope Borough is a named party; and to all post contract processes. The CAO will report to me the names of contractors, the amount and scope of contracts. and whether the contractor was selected by bid or was selected through negotiation. This will allow me to continue to monitor contracts and if I have concerns to take appropriate action. I am confident that you will continue to use your delegated authority to negotiate and administer contracts in the best interest of the Borough. Please work with the CAO to carry out this delegation. You should note that this delegation does not modify any other delegations that have been authorized by me, but does expand the delegation to the CAO. Its purpose is to make the contracting process more efficient. while continuing to protect the best interest of the Borough. Quyanaqpak!