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HomeMy WebLinkAboutAVTEC Wind REF Grant App AVTEC Renewable Energy Fund Wind Project Grant Application AVTEC Renewable Energy Fund SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Vocational Technical Center (AVTEC) Type of Entity: Governmental Entity (Alaska Department of Labor and Workforce Development) Mailing Address PO Box 889, Seward, Alaska, 99664 Physical Address 809 2nd Avenue, Seward, Alaska 99664 Telephone (907) 224-3322 Fax (907) 224-4400 Email fred.esposito@alaska.gov 1.1 APPLICANT POINT OF CONTACT Name Fred Esposito Title AVTEC Director Mailing Address PO Box 889, Seward, Alaska, 99664 Telephone (907) 224-6150 Fax (907) 224-4401 Email fred.esposito@alaska.gov 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or X A governmental entity (which includes tribal councils and housing authorities); YES  1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) YES 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. YES 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Grant Application Page 1 of 33 11/10/2008 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 2 of 33 11/10/2008 Direct Labor and Benefits $5,000 Travel, Meals, or Per Diem $0 Equipment $351,325 Supplies $0 Contractual Services $107,419 Construction Services $196,224 Other Direct Costs $48,995 TOTAL DIRECT CHARGES $708,963 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 AVTEC Renewable Energy Fund Wind Project is a Final Design/Permitting and Construction project for a wind energy installation in Seward, Alaska. The project has been proposed as a means to support the creation of a world class wind-diesel training program at the AVTEC campus located in Seward and will be further utilized to reduce operating costs at the school’s industrial electricity facility. Most importantly, the project will provide opportunities for rural power plant operators to gain hands on training and education regarding the operation of wind-diesel systems. 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 AVTEC Renewable Energy Fund Wind Project involves the installation of one (1) 100 kW wind turbine on the AVTEC campus located in Seward, Alaska. The completed project will be owned and operated by AVTEC and connected into the electrical distribution system at the school’s industrial electricity facility located on the northern edge of town. The project will offer benefits to AVTEC/State of Alaska through a reduction of operating costs at the state owned facility (electricity) and will be used primarily to support the creation of a world class wind- diesel training program that will provide opportunities for rural power plant operators to gain hands on operational experience with wind energy technology. Essentially, the completed project will support the alternative energy investments the state of Alaska is making through its HB 152 legislation by providing a training center and program for wind-diesel system operators. AVTEC has assembled a project team, headed by STG Incorporated, that is prepared to immediately begin work on an accelerated schedule. The project team includes members from Duane Miller Associates LLC, Hattenburg Dilley & Linnell LLC and BBFM Engineers. All aspects of the Final Design/Permitting and Construction project, detailed in the following pages of this application can be completed by fall of 2009. 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. Project cost estimates are summarized below: AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 3 of 33 11/10/2008 Total project costs of the AVTEC Renewable Energy Fund Wind Project are estimated to be $708,963 inclusive of Phases I to IV. Through the support of project partners, this project has advanced through Phases I and II and is ready for Phases III and IV activities. Project team members have contributed $18,995 in project conceptual design and initial feasibility review. The total grant request for the AVTEC Renewable Energy Fund Wind Project is $634,968 and based upon the following: Total Project Costs $708,963 Less: Phase I and II Contributed Costs ($18,995) Total Phase III and IV Costs $689,968 Less: Additional Investments ($55,000) Total Grant Request $634,968 The additional investment of $55,000 is inclusive of land, equipment, and labor contributed by AVTEC and committed partners for the completion of this project. AVTEC also expects to receive additional financial support from the Denali Commission of $20,000 to support the creation of specific wind-diesel training curriculum through the commission’s training budget. This grant requests that the Alaska Energy Authority (AEA) provides financial support of this project to purchase necessary energy generation equipment and complete the installation. The remaining project costs will be covered through in-kind project matches and other sources. 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. Currently, no wind-diesel training programs exist within the state of Alaska. In the past, rural Alaskan wind-diesel system operators have been sent out of state to receive necessary training. Thus, the greatest value of the completed project will be realized through a reduction of training costs (training Alaskans in state as opposed to sending individuals to out of state). Annually, the completed project is expected to reduce training costs by approximately $97,000. Total net energy production estimates are 100,756 kWh annually which would reduce operating costs at AVTEC by approximately $7,300 based on current electricity rates. Project partners estimate that Renewable Energy Certificates (RECs) could also be sold through the completed project and provide an additional $1,000 of revenue annually. The projected benefit/cost ratio for this project is 3.10, payback is estimated to be 6.15 years and the internal rate of return is estimated to be 13.66%. For an explanation of these calculations, see section 4.4.6. 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 $ 708,936 2.5.2 Grant Funds Requested in this application $ 634,968 2.5.3 Other Funds to be provided (Project match) $ 73,995 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 708,936 2.5.5 Estimated Benefit (Electricity savings) $7,297 – Annual $188,135 – Cumulative 2.5.6 Public Benefit (Training cost savings) $97,000 – Annual $1,940,000 – Cumulative AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 4 of 33 11/10/2008 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. AVTEC will utilize James St. George, President of STG Incorporated (STG), as the project manager for the AVTEC Renewable Energy Fund Wind Project. STG is one of Alaska’s premier construction services and management companies and is the leading installer of utility scale wind systems in the State of Alaska. Dealing mainly in rural Alaska, the company has played a major role in high profile projects such as wind energy installations, communication tower installation and community bulk fuel and diesel generation upgrades. STG specializes in remote project logistics, pile foundation installations, tower erection and construction management. STG has also managed and constructed many of the Alaska Energy Authority’s and the Alaska Village Electric Cooperative’s bulk fuel facility and rural power system upgrade projects. STG’s core competencies include bulk fuel systems, power plant construction, wind farms and pile foundations. Additionally, STG has expanded to become United Utilities’ preferred contractor for its “Delta Net Project” which involves the installation of communication towers and related equipment throughout the Yukon-Kuskokwim Delta. As project manager, James St. George and STG will be responsible to AVTEC for direct project oversight and coordination, project schedules, recommendations for AVTEC approval, equipment procurement and mobilization, review of plans and specifications, on-site inspections, and review/approval of work. References for James St. George and STG include: Krag Johnsen, Chief Operating Officer, Denali Commission 510 L Street, Suite 410, Anchorage, AK 99501 Phone (907) 271-1413, Fax (907) 271-1415 kjohnsen@denali.gov Meera Kohler, President/CEO, Alaska Village Electric Cooperative 4831 Eagle Street, Anchorage, AK 99503 Phone (907) 565-5531, Fax (907) 562-4086 mkohler@avec.org John Lyons, Operations Manager, TDX Corporation 4300 B Street, Suite 402, Anchorage, AK 99503 Phone (907) 762-8450, Fax (907) 562-0387 JLyons@tdxpower.com Resumes for STG are included in Section 7: Additional Documentation and Certification. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 5 of 33 11/10/2008 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.) Below is a project schedule for the AVTEC Renewable Energy Fund Wind Project. Phase I & II tasks are anticipated to be completed prior to the receipt of grant funding. The grant funded portion of the project will begin with Phase III and continue through Phase IV. Thus, work will begin immediately after the announcement of grant awards in early 2009 and continue through delivery and erection of wind turbines during the summer of 2009. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 6 of 33 11/10/2008   Finalize Engineering Designs Foundation Designs Interconnection Diagrams Preliminary Site Layout Bid Key Equipment Turbine  Procurement Tower Procurement Switchgear Procurement Other Procurement Begin Financing Development Define Contract Terms Sign Final Construction Agreement Access Necessary Capital Place Equipment Orders Project Cost Final Project Costing Permits and Environmental Necessary Permits Obtained  Environmental  Issues Resolved Analysis and Recommendations Finalize Operational Plans and Training Curriculum Periodic Reporting as Requested by Grant Requirements Renewable Energy Resource Ongoing Resource Monitoring Proposed System Design Formal Survey Work ‐‐ Final Site Design Take off and Mobilization Finalize Supply Delivery Schedules Finalize Heavy Equipment Delivery Schedules Organize Project Freight / Logistical Requirements Barge Deliveries Team Development Excavators, Operators, Laborers Foundation Excavation Foundation Installation Concrete Pours and Backfill Tower Erection Tower Installation Nacelle Placement Blade Placement System Integration Connection to Power Distribution System Connection to AVTEC Generation System Connection to Metering System SCADA Installation System Calibration Permitting & Environmental Finalize Regulatory Requirements Finalize Permitting Reports Analysis and Recommendations Develop Safety and Maintenance  Schedule As Built Diagrams Relevant to Construction Changes Relevant to Electrical/Distribution Changes Periodic Energy Reporting as Required by Grant STG HDL AVTEC AVTEC AVTEC STG DMA/BBFM/AVTEC STG/Northern Power STG All Partners AVTEC AVTEC AVTEC STG AVTEC STG Northern Power STG BBFM/DMA STG AVTEC SPRING 2009 SUMMER/FALL 2009 AVTEC STG DMA STG STG Barge Transportation STG HDL AVTEC STG/Northern AVTEC AVTEC EPS AVTEC EPS AEA Northern Power Phase III ‐Final Design and Permitting Phase IV ‐Construction, Commissioning, Operation, and Reporting AVTEC Renewable Energy Fund Wind Project Grant Application AVTEC Renewable Energy Fund 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Listed below are the key project milestones by project phase and the anticipated completion dates: Phase I and II Tasks (Reconnaissance, Analysis & Design) 1. Initial Renewable Resource Review Completed 2. Existing Energy System Analysis Completed 3. Proposed System Design Completed 4. Proposed System Costs Estimations Completed 5. Estimated Benefits Completed 6. Permitting Review Completed 7. Analysis of Potential Environmental Issues Completed 8. Preliminary Analysis and Recommendations Completed Phase III Tasks (Final Design and Permitting) 9. Perform Geotechnical Analysis Winter/Spring 2009 10. Finalize Energy Production Analysis Winter/Spring 2009 11. Finalize Foundation Designs Winter/Spring 2009 12. Finalize System Integration Designs Winter/Spring 2009 13. Turbine Procurement Winter/Spring 2009 14. Apply/Obtain Permits Winter/Spring 2009 15. Draft Final Operational Business Plan and Training Curriculum Winter/Spring 2009 Phase IV Tasks (Construction, Commissioning, Operation & Reporting) 16.1 Foundation Material Procurement Summer 2009 16.2 Mobilization and Demobilization Summer 2009 16.3 Site Access and Foundation Development Summer 2009 16.4 Foundation Installation Summer 2009 16.5 Tower/Turbine Erection Summer 2009 16.6 Construction Survey/As-Built Diagrams Summer 2009 16.7 Job Site Clean Up Summer 2009 17. System Integration Fall 2009 18. SCADA/Software Installation Fall 2009 19. System Calibration Fall 2009 20. Curriculum Implemented for Wind-Diesel Training Program Fall 2009 Grant Application Page 7 of 33 11/10/2008 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 8 of 33 11/10/2008 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 AVTEC Renewable Energy Fund Wind Project will be under the overall direction of Fred Esposito, Director of AVTEC, and the project manager will be James St. George, President of STG Incorporated. Personnel: AVTEC’s Director, Fred Esposito, will have ultimate responsibility and authority over project decisions and will ensure that all grant requirements are fulfilled. Mr. Esposito will be assisted by AVTEC Deputy Director, Dick Harrell and AVTEC Business Services Administrator, Mary Sutton, who will oversee grant accounting functions; AVTEC’s Department of Applied Technology Chair, Kent Berklund, will coordinate on-going field operations with the project manager and oversee AVTEC staff/students involved with the project installation/integration; AVTEC’s Industrial Electricity Instructor, Dan Logan will coordinate with the project manager to assist with the integration of the wind system to the existing power generation system at AVTEC. See Section 4.4.5 Business Plan for a more detailed discussion of AVTEC including its institutional structure, management and operations. In addition to the key project partners, AVTEC will also serve as the conduit to other outside project stakeholder who will have various levels of involvement with the project. Specifically, the AEA is currently engaged in the process of redesigning switchgears for AVTEC’s industrial electricity facility. AEA and AVTEC work collaboratively to provide training for Alaska’s rural power plant operators and, as a result, the finalized system designs must incorporate the interests of both the AEA and AVTEC and be able to support both of the organizations’ training objectives. Project partners have discussed their interest in installing a wind system at the AVTEC facility that will be connected into the new system that is currently being designed through the AEA. Project partners have also discussed project plans with the engineering firm that will be completing the newly designed switchgear for the AEA. Both AVTEC and AEA have expressed their interest in working collaboratively during the redesign/installation of AVTEC’s new switchgear and the turbine installation can be incorporated into the final designs. Contractors: James St. George (STG) will be the project manager of the AVTEC Renewable Energy Fund Wind Project and, under AVTEC management oversight, will manage all project labor, consultants, procurement, construction contractors; review plans and specifications and project work; conduct on-site inspections; and provide other management functions assigned by AVTEC to ensure that the project objectives are attained. AVTEC and STG have also established relationships with a strong team of subcontractors and suppliers to assist with this project including Duane Miller Associates LLC, Hattenburg Dilley & Linnell, and BBFM Engineers. Additionally, Northern Power will also take an active role in the proposed project as the turbine supplier. Through collaboration with STG and Alaska Village Electric Cooperative, Northern Power has hosted several wind power training seminars in the past to help rural Alaskans maintain wind-diesel systems in their communities. AVTEC and project partners will utilize this existing training as a basis in drafting a more comprehensive curriculum that will be offered prior to the completed installation. A more detailed explanation of training expectations is included in Section 5. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 9 of 33 11/10/2008 The organizational chart below shows the key project partners and their roles: Duane Miller Associates, LLC (Principal: Duane Miller, P.E.) will provide geotechnical engineering services. DMA engineers are peer reviewed and recognized experts in cold regions geotechnical engineering as well as unfrozen ground geotechnical engineering. DMA geotechnical engineering project experience ranges from small rural projects to large industrial and defense projects. Hattenburg, Dilley & Linnell (Principal: Scott Hattenburg, P.E.) will provide project permitting and environmental services. HDL specializes in civil, geotechnical and transportation engineering as well as providing permitting and environmental services. HDL has extensive experience with rural energy projects and working with rural communities including the recent completion of permitting and environmental review for the Hooper Bay and Chevak wind projects. BBFM Engineers (Principal: Troy Fellers, P.E.) will provide structural engineering services. BBFM has provided structural engineering design services to military and civilian clients throughout Alaska. BBFM has particular expertise in rural Alaska; completing more than 80 building and tower projects in western Alaska. BBFM has designed tower foundations in 12 different villages in soil conditions ranging from marginal permafrost in deep silty soils to mountain-top bedrock. Additionally, BBFM is currently providing engineering services for AVTEC involving several new building that will be constructed as part of the school’s on-going expansion project. Chris Schimschat Sandy St. George VP, Field Operations Accounting Dave Myers Project Manager Brennan Walsh Project Engineer DUANE MILLER Bret Pingree Richard Mitchells, P.E. Scott Hattenburg, P.E. Troy Feller, P.E. VP, Sales Project Engineer Principal Principal Turbine Supplier Geotechnical Project Permitting Integration Partner Engineering Supplier External Project Stakholders Structural Engineering Sub-Contractors Project Manager, General Contractor ALASKA DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT Click Bishop, Commissioner Fred Esposito, Director Project OwnerALASKA ENERGY AUTHORITY Steve Haagenson, Exeuctive Director BCG ENGINEERING Brian Gray, P.E., Principal James St. George, President Project Partners BBFM ENGINEERS ALASKA VOCATIONAL TECHNICAL CENTER (AVTEC) STG INCORPORATED NORTHERN POWER HATTENBURG DILLEY & LINNELL, LLC AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 10 of 33 11/10/2008 Suppliers: The AVTEC Renewable Energy Fund Wind Project will follow competitive purchasing procedures that meet the standards defined in the sample AEA Grant Agreement. Through the conceptual design planning efforts completed during Phase I and II of this project, project members have determined that the Northwind 100 kW wind turbine manufactured by Northern Power would be the most appropriate choice in regards to the specific generator to be installed. This determination has been based on Northern’s market leading position within the state of Alaska, the company’s past experience leading training seminars for rural Alaskan wind- diesel system operators, six month turbine delivery schedule, low cost relative to other utility scale wind energy systems currently available, and the security of working with a turbine manufacturer that has demonstrated a commitment to the Alaska market. Currently, thirteen (13) Northwind 100 turbines are operating across Alaska, seven (7) turbines are currently planned for construction, and the installation of approximately an additional thirty (30) Northwind turbines have been proposed through the previous round of AEA’s Renewable Energy Fund. As a result, project members believe that the installation of this particular turbine model is the most attractive choice of those currently available. Moreover, AVTEC will also be able to ultimately design a training program around this installation that would provide appropriate wind-diesel training for power plant operators regardless of the specific wind generation equipment of generator set configurations within their community. Equipment: All of the major construction equipment required for the AVTEC Renewable Energy Fund Wind Project will be made available by STG and/or AVTEC. AVTEC will provide some equipment for project support, foundation excavation/construction, and necessary trenching. The school maintains a fleet of heavy equipment that would be made available as an in-kind contribution should the need arise including: • Case Back Hoe • Small Dozers (JD 550 or Case 450) • Hitachi 150 Shovel with Extended Boom • Case 8000 lbs Forklift Other construction equipment needed to complete this project will be provided by STG from their fleet of equipment including: • DMAG 150 Ton All Terrain Crane • Caterpillar 312L Excavator • Caterpillar 460H Extend-A-Boom Forklift • 2 4X4 Pick-up Trucks, Crew Cab Resumes and general information for key personnel, contractors and suppliers is included in Section 7: Additional Documentation and Certification. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. As the grantee, AVTEC Director Fred Esposito will be the point of contact between AVTEC and the AEA. As such, Mr. Esposito will be responsible for submitting AEA progress and financial reports, which will summarize the progress made during the reporting period and identify any difficulties in completing tasks, meeting goals/deadlines, etc. AVTEC will utilize the AEA AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 11 of 33 11/10/2008 format for these reports. The project manager, James St. George (STG), will be responsible to monitor the project activities and to coordinate with AVTEC. STG will coordinate daily team meetings to outline objectives and issues and, weekly, will communicate with AVTEC to identify any outstanding issues and suggested resolutions. Additionally, STG will provide AVTEC with information for the required AEA required reporting. STG will focus on variance analysis, comparing actual project results to planned or expected results; summary of tasks completed during the reporting period; summary of tasks scheduled for completion in the next reporting period; and, identification of project challenges and problems. STG will provide the information to AVTEC in the approved AEA format for these reports. Change Process: The information contained within the project plan will likely change as the project progresses. While change is both certain and required, it is important to note that any changes to the project plan will impact at least one of three key success factors: available time, available resources or project quality. The decision by which to make modifications to the project plan will be coordinated using the following process: Step 1: As soon as a change that impacts project scope, schedule, staffing or spending is identified, the project manager will document the issue. Step 2: The project manager will review the change and determine the associated impact to the project and will forward the issue, along with a recommendation to AVTEC and/or AEA for review and decision. Step 3: Upon receipt, AVTEC, the project manager and/or AEA should reach a consensus opinion on whether to approve, reject or modify the project plan based upon the project manager’s recommendation and their own judgment. Step 4: Following an approval or denial, the project manager will modify the project plan and notify all the affected project partners. 3.6 Project Risk Discuss potential problems and how you would address them. The AVTEC Renewable Energy Fund Wind Project would be utilized to support a world class wind-diesel training program. As such, the project planning must incorporate an ongoing analysis of potential problems and strategies to address them. Outlined below are the key issues the project members expect to encounter: Issue #1: Ability to integrate the proposed wind energy system with existing diesel gen-set configuration at the AVTEC facility in a manner that will closely mirror village wind- diesel configurations. Strategy to address: AVTEC and project partners will coordinate closely with the AEA and the City of Seward to ensure that final system designs can be utilized to both mirror village wind-diesel systems and successfully integrate with the City of Seward’s existing distribution system. Energy generated through the wind installation will be used primarily to offset current electricity consumption at AVTEC’s facility. Excess energy AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 12 of 33 11/10/2008 will be fed into the Seward electrical grid (rail-belt grid) and therefore must be supplied in a high quality manner in order to not adversely affect utility services. The AEA (system designers of the current electrical generation facility at AVTEC) and the City of Seward will be engaged immediately to ensure that project partners can successfully address this potential concern. Issue #2: Ability to integrate the proposed wind energy system with the upgraded switchgear that will be installed at the AVTEC facility. Strategy to address: Currently, AEA is in the process of designing new switchgear for AVTEC’s industrial electricity facility. The proposed wind energy system will be tied into this system. AVTEC and project partners have engaged the engineering firm that will be designing this new system, BCG Engineering, and will continue to work collaboratively to ensure that new switchgears are ‘wind ready’ and able to communicate appropriately with the proposed wind installation. The AEA has indicated that they intend to design a new switchgear system that would communicate appropriately with a wind power installation. Issue #3: Constructing a cost-effective tower foundation. Strategy to address: The foundation design will be developed with the turbine supplier, geotechnical engineer, structural engineer and contractor working together as a team to determine appropriate materials and systems for the site. Northern Power, STG, Duane Miller Associates and BBFM Engineers have successfully worked together on other wind tower foundation designs in remote Alaskan locations. Getting contractors input up front at the concept stage of design will allow for an appropriate foundation system to be developed. Final foundation design will likely be based on previously generated designs for Northwind installations in non-permafrost conditions. Issue #4: Obtaining FAA approval for the project due to the proposed installation site’s proximity to the Seward airport. Strategy to address: The proposed installation site lies within one mile of the main runway of the Seward airport, but is also located in a position that is not in the direct flight path of incoming or outgoing aircraft. Coordination with the FAA will begin as soon as the project begins in order to incorporate FAA considerations into final designs. The proposed turbine will be installed with appropriate safety equipment (safety strobes). AVTEC and project partners have already engaged the FAA regarding project plans and it is believed that this issue is not insurmountable and will be able to be resolved through minor alterations of project designs if necessary. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 13 of 33 11/10/2008 SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Historic wind resource wind data recorded within 1 mile of the proposed installation site indicate an annual average wind speed of 4.7 m/s at hub height of the installed turbine. The data utilized for production estimates was supplied by the AEA and recorded at the Seward airport. Due to the proximity of the project site to the airport, partners believe that recorded wind conditions would be comparable to those found at the project site which is less than one mile from the airport’s meteorological tower. Wind speeds documented at the airport were recorded on an 8 meter tower. This data was extrapolated to the proposed hub height (37 meters) in order to obtain energy production estimates. Currently, a 30 meter meteorological tower is installed at the project installation site. This tower was installed in 2006, but due to inaccurate data from this particular tower, wind resource information from this system could not be obtained. AEA and AVTEC are currently working to resolve this issue regarding the installed meteorological tower at the proposed project installation site. Data indicates that the project site is located within a Class 1 wind resource. Partners expect the project to supply approximately 101,000 kWh to the AVTEC industrial electricity facility annually which represents a gross capacity factor of 14%. Between 2006 and 2008, AVTEC used an average of 158,613 kWh of electricity annually at their industrial electricity facility. The completed project is expected to supply 64% of this facility’s annual electrical needs. Due to the fact that the primary motivation partners regarding this project is the establishment of a wind-diesel training program, other alternative energy technologies were not heavily considered during conceptual planning phases. In order to deliver hands on wind-diesel training as proposed in this application, wind technology must be utilized. Nonetheless, project partners believe that the implementation of this project will support both focused wind-diesel training as well as less specific training that could cover the use of various types of alternative generation equipment connected to rural diesel powered electricity grids across Alaska. 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. AVTEC’s facilities are connected to the electricity grid maintained by the City of Seward. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 14 of 33 11/10/2008 Ultimately, the City of Seward is connected to the larger rail-belt power grid and AVTEC purchases their electricity from the city utility. Currently, AVTEC purchases the electricity consumed at their Seward facilities at an average cost of $.071/kWh. Energy generated through the proposed wind installation will offset some of the school’s annual energy needs, but the AVTEC industrial electricity shop (the specific building that the turbine will be tied into) will remain connected to Seward gird. AVTEC also maintains four generator sets, switchgear, dump load systems, and other supporting electrical generation equipment at their industrial electricity facility that is utilized for ongoing training for rural power plant operators. The generator sets currently maintained by AVTEC include: Brand/Model Size (kW) Cummins 265 KW 208V John Deere 200 KW 208V 12.5L 375 HP John Deere 95 KW 208V 6.8 L 166 HP Caterpillar 50 KW 208V AVTEC operates these generator sets regularly as part of on-going training, though the system is not utilized as a primary power source for the facility. When generator sets are in operation, the energy produced from the system is used to supply the industrial electricity shop and one half an additional, adjacent facility. Excess electrical generation is not fed back into the Seward electrical grid and is managed through dump load systems located within AVTEC’s industrial electricity facility. The installed turbine will be integrated into this metered system and designed in a manner that will work with both types of configurations. A more detailed discussion of the proposed system design can be found in Section 4.3. 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. AVTEC purchases electricity from the City of Seward’s utility at an average cost of $.071/kWh. The installed wind turbine will be connected into the school’s industrial electricity shop which is metered as part of a system that encompasses the industrial electricity shop and ½ of the adjacent building which houses AVTEC’s structural welding and diesel technology programs. Over the past few years, AVTEC has consumed the following through this specific metered account: YEAR USAGE (kWh) FY 2006 164,400 FY 2007 153,040 FY 2008 158,400 FY 2009 (to date) 23,040 ANNUAL AVERAGE (FY 2006-2008) 158,613 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 15 of 33 11/10/2008 Based on annual average consumption, the completed project is expected to supply 64% of the facility’s annual electricity needs. Due to the relatively low power production of the project in comparison to the relatively high level of power supplies present on the city utility’s (and especially the rail-belt) electrical distribution system, the project is expected to have no significant impact on the existing electrical distribution system. Project partners intend to connect the installed turbine into the existing electrical distribution system at AVTEC’s industrial electricity shop in a manner that will allow for both accurate simulation of isolated wind-diesel system operation during training sessions and seamless integration with the city’s utility existing electrical distribution system during the remaining periods. It is also expected that there will be times when the output of the proposed wind generator exceeds current electricity demands at the AVTEC facility. Project partners expect to establish a net metering program (or at least permission from the Seward utility to feed power back into their electrical system) in order to fully utilize all energy produced through the installation. Project partners have already engaged the city utility regarding AVTEC’s interest in installing a wind generator at their facility. Initial correspondence regarding these plans has been positive and project partners expect to successfully negotiate an agreement with the city utility regarding an interconnection agreement. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. AVTEC, and the residents of Seward, rely on the city utility for electricity services. Incorporated in 1912, Seward is a home-rule city located within the Kenai Peninsula Borough, has a population of 2,600 within city limits, and approximately another 3,000 living just outside city boundaries. The community sits on the edge of Resurrection Bay in south central Alaska, approximately 125 miles from Anchorage. In addition to electricity services, the city government maintains the following offices through a staff of approximately 90 year round employees: • 24 Hour Police and Fire Departments • Library • Hospital • Public Works • Boat Harbor • Community Development • Engineering and Building • Parks & Recreation • Youth Center • Water/Wastewater Utility Specific to electricity, the City of Seward offers service to both residential and commercial customers through the distribution system that it maintains. Due to the relatively low power production of the project in comparison to the relatively high level of power supplies present on the city utility’s (and especially the rail-belt) electrical distribution system, the project is expected to have no significant impact on the existing electrical distribution system or the city’s existing customer base. AVTEC Renewable Energy Fund Wind Project Grant Application AVTEC Renewable Energy Fund 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 System Overview Wind-diesel power systems are classified based on their penetration levels and categorized as low penetration, medium penetration, high penetration and high penetration diesel off configurations. As the level of penetration increases, the average proportion of wind-generated energy to the total amount of energy supplied to the system, the degree of communication between existing power generation facilities and the installed wind energy systems increases in complexity. The system proposed through this application would be a hybrid design that meshes a gird connected and a stand alone wind-diesel structure. For the majority of the time, the proposed turbine would be supplying energy directly to AVTEC’s industrial electricity facility (grid-connected). During future wind-diesel trainings, the turbine would be incorporated into the diesel generation configuration (stand alone wind-diesel structure whenever AVTEC’s generator sets are in operation) in order to closely mirror the system designs found on rural Alaska wind-diesel grids. During periods when the turbine will be expected to perform as a component of an isolated wind-diesel system, the system would be characterized as a medium penetration system. Final system designs will incorporate these project requirements and are not believed to be insurmountable challenges. Project partners estimate that the turbine will be utilized in a grid tied configuration approximately 90% of any given year and utilized as part of the stand alone wind-diesel system during the remaining 10%. The wind installation proposed in this application is based on the following objectives: • Identify a suitable utility scale wind turbine that would support the creation of a world class wind-diesel training at the AVTEC campus • Ensure high power quality and system stability • Utilize standardized, proven, and scalable commercial components that will provide opportunities for wind-diesel training participants to develop the skills necessary to manage any wind-diesel system regardless of the specific generator sets, wind turbines, or system designs found in rural Alaskan communities • Establish a wind-diesel training program that supports the interests of all wind-diesel stakeholders within the state of Alaska The system architecture proposed in this application consists of: Grant Application Page 16 of 33 11/10/2008 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 17 of 33 11/10/2008 • One (1) 100 kW wind turbine • A grid tied electrical configuration and a switchgear capable of utilizing the installed wind generated power supplies through a isolated wind-diesel configuration • A dump load system to manage excess generation during periods of diesel generation The system design proposed in this application consists of proven technology that will be implemented and supported through contracted services with a team of Alaska’s most experienced wind energy professionals. Similar wind-diesel systems to the one proposed in this application have been deployed successfully not just in Alaska, but in markets across the world. Moreover, this proposed installation will provide significant opportunities to further develop Alaska’s knowledge base regarding wind energy systems through the creation of a wind-diesel training program. In this regard, the project presents an attractive opportunity for the state of Alaska to develop its reputation as a world leader in the utilization, design and management of wind-diesel systems. Project Location Based on the review of documented wind resource data, land availability, and existing electrical distribution infrastructure, various project locations were considered. Project team members have concluded that the most suitable location for the wind installation would be the open lot currently leased by AVTEC which is located just south of the school’s industrial electricity facility. The map below indicates this proposed installation site: AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 18 of 33 11/10/2008 While wind resource data indicates low annual wind speeds at the proposed installation site, it is a project requirement that the turbine be connected into AVTEC’s isolated diesel powered system in order to support future wind-diesel trainings. In this regard, the turbine’s proximity to AVTEC’s industrial electricity facility will simplify system integration procedures and provide easier access to the installed turbine during future wind-diesel training. Project members believe that by installing the turbine adjacent to the industrial electricity facility, system integration becomes much more manageable and project costs are much lower than would be the case if the turbine were installed in a more removed location. The turbine would be installed approximately 250 feet south of AVTEC’s industrial electricity facility. Based on documented wind resource data and the Northwind 100 specifications, the production expectations at the proposed installation site are as follows: Annual Average Wind Speed at Hub Height 4.7 m/s Gross Wind Energy Production (kWh) 119,097 Gross Wind Turbine Capacity Factor 13.6% Estimated Loss Factor (Maintenance, Transmission Loss, etc.) 10% Net Wind Energy Production (kWh) 100,756 System Architecture Wind Turbine During the conceptual design phases of this project, different utility scale turbines were evaluated based on a variety of criteria. These considerations included estimated delivered price of all wind turbine components (generator, blades, tower, controls, etc.), estimated delivery schedule, performance statistics of units currently operating within the Alaska market, and total market share of various machines. Through this analysis, project partners have determined that the Northwind100 turbine manufactured by Northern Power is the most attractive unit currently available to support project objectives and requirements. The Northwind 100 represents a new generation of wind turbines. Its permanent-magnet, direct drive architecture is state of the art and particularly well suited for rural Alaska operation. That architecture overcomes many of the challenges of connecting old-style induction generators to electrical distribution grids. The permanent-magnet generator is connected to a full power converter that converts its variable, low-frequency, alternating-current output to direct current, then back to tightly regulated alternating current during output. The permanent-magnet generator requires no reactive power to energize its magnetic field, removing that influence. The power converter also provides a broad degree of control over the form and quality of the power output. The active controls in the power converter allow reactive power to either be consumed or produced by the Northwind 100 regardless of its real power output, even in the complete absence of wind. Thus, the turbine controls allow power output to be controlled by dynamic grid conditions, including automatic output reduction or complete shutdown,. The combination of advanced controls and integrated disk braking allows gradual ramping of turbine output up or down, reduced flicker and a maximized supply of usable power. This application proposes that one 100 kW Northwind turbine be installed on top of a 37 meter tubular tower at AVTEC’s industrial electricity facility. Summary specifications of the Northwind 100 turbine are included below: Grant Appli AVTEC Renewable Energy Fund cation AVTEC Renewable Energy Fund Grant Application Page 19 of 33 11/10/2008 Integrated Control Network The installed turbine will be integrated in a manner that will make it possible for the turbine to operate while both in a grid tied configuration as well as an active component in a closed wind- diesel system. During normal operation, the turbine will supply power to AVTEC’s industrial electricity facility through the grid tied configuration and excess energy will be fed into the Seward electrical grid. During future wind-diesel trainings, the turbine will supply power as a component in the facility’s existing diesel generation system. Both configurations are project requirements and necessary in order to both ensure that high quality power is supplied from the AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 20 of 33 11/10/2008 turbine during grid connected periods and in order to deliver hands on wind-diesel training during the periods when AVTEC’s generators are in operation. As a result of these project requirements, a unique system will need to be designed and installed that is a hybrid between a typical grid connected wind generator (shown below): And one that is connected into an isolated wind-diesel power grid (shown below): Additionally, it is also a project requirement that the installed wind generator be able to communicate effectively with new switchgear that is currently being designed for AVTEC’s AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 21 of 33 11/10/2008 industrial electricity facility along with existing generator sets. Project members have already engaged the AEA (who is funding the re-design and installation of new switchgear through a separate budget than what is documented in this application) and the engineering firm that is completing this work under contract regarding AVTEC’s interest in the proposed wind installation. AEA has expressed their support of AVTEC’s interest in installing the proposed wind turbine and the system engineer has also been engaged by project partners to ensure that all parties’ interests are met and that the newly designed/installed switchgear will be able to support project requirements. All parties have committed to working collaboratively during the design and system integration processes to ensure that the installation is successfully implemented. Moreover, and while this application documents a unique system design that will require a higher level of component communications than what has been designed for previously implemented wind power installations within Alaska, project stakeholders believe that integration issues can be solved and implemented as proposed. During operation, the installed turbine will be controlled through an SCADA system that can be accessed through a closed communication network or through an online interface. The wind turbines are supplied with this interface and monitoring modules will be added to the system in order to communicate with the turbine. These modules send and receive data, such as the state of the machine (running, stopped, on-line and off-line, power generated, alarms, nacelle position, etc.), current energy production, system performance and system monitoring. Commands can be initiated from the wind turbine controller itself or from a centralized control station and typically include options that will allow system operators to start/stop turbines, control power outputs of the turbines through pitch regulation or power set point control and adjust other blade components. The system will communicate with AVTEC via fiber optic cable that will be run from the installation site into the existing distribution system inside of the industrial electricity facility. 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. AVTEC currently leases the property where the proposed turbine will be installed. In addition to the proposed installation site, this lease also covers the property where AVTEC has constructed their industrial electricity, building technology, heavy equipment, pipe welding, and automotive technology facilities. AVTEC has leased this property since 1975 and their current lease agreement expires in 2020. AVTEC is also in the process of renovating several of the facilities that sit on this property through a comprehensive capital improvement project. As a result, it is expected that AVTEC will maintain site control through the extension of the current lease due to the fact that AVTEC has previously constructed numerous facilities at this location which will be expanded upon through this capital project. On an annual basis, AVTEC incurs a cost of $15,839 for their lease of the proposed project area. Nonetheless, and because AVTEC will incur this cost regardless of whether or not the project is developed due to the structure of their lease agreement, this cost has not been factored into project estimates. There are no known or unresolved land issues involving the project installation site at this time. Moreover, there are no developmental restrictions in the current lease that would prevent AVTEC from completing the project as it has been proposed. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 22 of 33 11/10/2008 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 Through consultation with Hattenburg Dilley & Linnell LLC, the following chart documents the applicable Federal and State permitting activities and their relevance to project components: Permit/Activity Applicability EPA National Pollutant Discharge Elimination System Applicable National Marine Fisheries Service Endangered Species Act Consultation Applicable F&W Coordination Act Consultation, Marine Mammal Act Applicable U.S. Fish & Wildlife ESA Consultant Applicable F&W Coordination Act Consultation Migratory Bird Protection Act Consultation Applicable Federal Aviation Administration Tower/lighting permit Applicable Alaska Department of Natural Resources Alaska Coastal Management Program (ACMP) Consistency Review Applicable Coastal Plan Questionnaire Applicable Cultural Resource Protection Applicable Alaska Department of Environmental Conservation Section 401 Certification Applicable City of Seward Construction Permit Grid Interconnection Agreement Applicable Applicable HDL will lead project permitting efforts and anticipates that the permitting process will be completed within 120 days of the start of the project. This is based upon similar project experience and the following: • A field archaeological survey will not be needed for SHPO concurrence • There is no reason to assume there will be any significant environmental impacts • A Phase I Environmental Site Assessment should not be needed • Field delineation of wetlands should not be needed While there is no reason to believe that the project will encounter any insurmountable barriers, there are two potential challenges that could arise: 1. Coordination with the FAA to determine air hazards will be critical. Strategy to Address: Coordination will begin as soon as the project begins in order to incorporate FAA considerations into final designs. Communication with the FAA AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 23 of 33 11/10/2008 regarding permitting is underway and a 30 meter meteorological tower is already installed at the proposed location. FAA approval was received for this tower installation and, as a result, project partners believe that the additional height of the installed wind turbine (48 meters including tower and blade set) would be within an acceptable range for the FAA. 2. Project partners will need to engage the City of Seward to define zoning regulations and interconnection agreements regarding the project. Strategy to Address: The installed wind energy system would be the first large scale distributed energy system connected into the Seward electrical grid. As a result of the city’s inexperience with the technology and lack of defined zoning code regarding renewable energy projects, project partners expect to work collaboratively with city officials to define new regulations regarding the installation of renewable energy equipment. City officials involved with Seward’s zoning regulations, building codes, and electric utility have all been engaged regarding AVTEC’s interest in installing the proposed system documented in this application. Project partners expect to be able to successfully navigate these permitting activities in a manner that will satisfy both the City of Seward’s and AVTEC’s interests. 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 Environmental analyses will be conducted to evaluate the potential effects of the proposed project. This analysis will not involve field work at this level outside of the site visit. Anticipated environmental issues to be addressed include: • Historical and Cultural Impacts. A search of the Alaska Historical Resource Survey will be conducted. After consulting with the native tribes and corporations, we will seek a State Historical Preservation Office (SHPO) concurrence of “No Historic Properties Affected.” • Wetlands. A review of the U.S. Fish & Wildlife Service’s National Wetlands Inventory will be conducted to identify wetlands in the project area. Where wetlands are encountered, a delineation report will be submitted to the U.S. Army Corps of Engineers for a jurisdictional determination. Wetlands impacts will be minimized to the greatest extent feasible. • Threatened & Endangered Species. An informal U.S. Fish & Wildlife Service (USF&W) Section 7 Consultation is anticipated due to the concern generated from wind towers and transmission lines with regards to migratory birds. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 24 of 33 11/10/2008 • FAA Determination of No Hazard. HDL will apply for a determination from the FAA that the wind towers will not be a hazard to air traffic in the area due to its proximity to the airport. Issues that are not anticipated to be of major concern, but will be addressed, include land development constraints, telecommunications interference and visual impacts. 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 The total project cost of the AVTEC Renewable Energy Fund Wind Project is estimated to be $708,963, inclusive of Phases I to IV. As discussed previously, this project has advanced through Phases I and II and is ready for Phases III and IV activities. Project team members have also contributed $18,995 in project conceptual design and feasibility study regarding this proposed project. The total grant request for the AVTEC Renewable Energy Fund Wind Project is $634,968 and is based upon the following: Total Project Costs $708,963 Less: Phase I and II Contributed Costs ($18,995) Total Phase III and IV Costs $689,968 Less: Additional Investments ($55,000) Total Grant Request $634,968 The additional investment of $55,000 is inclusive of land, equipment, and labor contributed by AVTEC and committed partners for the completion of this project. AVTEC and project partners also expect to receive additional financial support from the Denali Commission to develop specific wind- diesel training curriculum through the commission’s training budget. All project cost estimates have been developed utilizing contractor and vendor cost quotes. The professional, contractual and construction cost estimates are expected to remain valid through the first quarter of 2009. The capital costs for this project are estimated to be $689,968 and development costs are estimated to be $18,995. A summary of all project activities and associated estimated costs is included below: AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 25 of 33 11/10/2008 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. • Total anticipated project cost for this phase • Requested grant funding Estimated annual O&M costs have been generated through a review of historic O&M costs of other Northwind100 turbines installed inside of Alaska and through dialog with the turbine manufacturer. The anticipation of performing certain major repairs on the wind farm during certain periods of its operational life (gear box replacement, blade repair, etc.) has been factored into this estimated annual O&M expense. According to the Alaska Village Electric Cooperative (AVEC), the Northwind turbines that they have installed and currently maintain have required, on average, annual maintenance cost of $.021 per kWh of produced energy. It is expected that the Northwind installation at AVTEC’s facility would achieve lower average costs due to its proximity to Anchorage (lower travel costs for technicians and reduced shipping expenses for needed replacement parts), but for the purpose of our analysis, AVEC’s average variable cost was used in the financial analysis preformed by project partners. Based on the expected production at the proposed installation site, this annual cost is expected to be approximately $2,500. This estimate was also discussed with the turbine supplier and was confirmed as a reasonable BUDGET INFORMATION BUDGET SUMMARY: AVTEC RENEWABLE ENERGY FUND WIND PROJECT Milestone Federal  Funds State Funds Local Match  Funds  (Cash) Local Match  Funds (In‐ Kind) Other Funds TOTALS Phase I and II Tasks (Reconnaissance, Feasibility & Conceptual Design) 1. Initial Renewable Resource Review $2,524 $2,524 2. Existing Energy System Analysis $2,828 $2,828 3. Proposed System Design $3,546 $3,546 4. Proposed System Costs Estimations $3,434 $3,434 5. Proposed Benefits $2,524 $2,524 6. Permitting Review $865 $865 7. Analysis of Potential Environmental Issues $750 $750 8.  Preliminary Analysis and Recommendations $2,524 $2,524 Total Phase I and Phase II Costs $18,995 Phase III Tasks (Final Design and Permitting) 9. Project Management $10,000 $10,000 10. Perform Geotechnical Analysis $22,798 $22,798 11. Finalize Foundation Designs $14,621 $14,621 12. Finalize System Integration Designs $10,000 $10,000 13. Turbine Procurement $351,325 $351,325 14. Apply for/Obtain Permits $20,000 $20,000 15. Draft Final Operational Business Plan and Training Curriculum $10,000 $10,000 Total Phase III Costs $438,744 Phase IV Tasks (Construction, Commissioning, Operation & Reporting) 16. Project Management $10,000 $10,000 17.1 Foundation Material Procurement $74,008 $74,008 17.2 Mobilization and Demobilization Costs $29,900 $29,900 17.3 Site Access and Foundation Development $13,428 $13,428 17.4 Foundation Installation $30,213 $5,000 $35,213 17.5 Tower/Turbine Erecting $20,142 $20,000 $40,142 17.6 Construction Survey/As‐Built Diagrams $5,175 $5,175 17.7 Job Site Clean Up $3,357 $3,357 18. System Integration $20,000 $20,000 19. SCADA/Software Installation $10,000 $10,000 20. Curriculum Finalized and Implemented for Wind Energy Training $10,000 $10,000 Total Phase IV Costs $251,224 Total Project Costs (Phase I, II, III and IV)$20,000 $634,968 $0 $25,000 $28,995 $708,963 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 26 of 33 11/10/2008 estimation for the proposed project. On-going O&M costs of the constructed wind project would be funded by energy savings generated through the project. 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 AVTEC currently purchases electricity from the City of Seward. Energy produced through the proposed project will used to reduced annual electricity costs for the facility and project partners intend to negotiate an agreement with the City of Seward regarding the purchase of any excess energy that would be fed back into the city’s electrical distribution gird. Project partners expect to negotiate an agreement that would be beneficial to both AVTEC and the City of Seward to ensure that all parties’ interests are met. Moreover, all of the energy produced and utilized at AVTEC’s facilities will result in direct public benefits due to the school’s status as a state owned institution. If it becomes necessary for AVTEC and the City of Seward to negotiate a power purchase price agreement for excess energy supplied into the Seward electrical grid, project partners expect that the negotiated rate would be in proximity to the utility’s calculated cost of power. This cost is estimated to be between $.04-$.06/kWh. Based upon the expected cash flows generated through analysis of assumed energy and training cost savings, the proposed internal rate of return for the project is 13.66%. A summary of cash flow projections and financial assumptions is included in Section 4.4.6 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. A completed cost worksheet is included in Section 7: Additional Documentation and Certification. 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 AVTEC Renewable Energy Fund Wind Project will be owned and operated by AVTEC, a well-managed and state-owned educational institution, upon completion of the project. Anticipated operations and maintenance regarding the project, both short and long term, will be incorporated into existing AVTEC operations and management plans. Below are highlights of AVTEC’s management plan. History and Institutional Structure Alaska Vocational Technical Center (AVTEC), established in 1970, is a residential, postsecondary adult vocational technical school nationally accredited by the Council of Occupational Education. AVTEC is a division of the State of Alaska, Department of Labor and AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 27 of 33 11/10/2008 Workforce Development and is governed by the Alaska Workforce Investment Board (AWIB). Training programs are competency based, employer driven, and industry certified. For over thirty years, AVTEC has a tradition of successful partnership with employers to develop occupational training programs to meet industry standards and demands. Graduation (82%) and training-related employment (94%) rates for AVTEC students exceed national and state standards and post- training wages of graduates for the first year after training are the highest in Alaska. Management Team AVTEC has a Director, Fred Esposito, with over 20 years experience teaching and managing vocational training programs at the secondary and postsecondary level, a Deputy Director, Dick Harrell, with 10 years experience administrating AVTEC programs, grants and supervising staff and a Business Services Administrator, Mary Sutton, with 9 years experience that has successfully administered financial aspects of all grants and RSA’s at AVTEC under the state accounting system. She also provides support in accounting, travel, payroll and purchasing. These individuals along with supporting staff will oversee the proposed project. Financial Accounting Procedures AVTEC utilizes The Alaska Statewide Accounting System (AKSAS) for their financial record keeping. AKSAS is a mainframe application established pursuant to authority vested in the Department of Administration by AS.37.05.140 and other statutes. AKSAS is maintained by the Division of Finance and used by authorized individuals to manage and track the state’s financial resources. It is designed to present fairly and with full disclosure the financial position and results of financial operations of the funds and account groups of the state in conformity with generally accepted accounting principles (GAAP). AKSAS provides for online input of transactions or when appropriate it can accept transactions generated by outside systems via a batch interface. Batch interfaces are used to load payroll warrants and charges, welfare warrants, medical assistance payments, and payments for a wide variety of other state entitlement programs. All transactions regardless of the original source are held in a suspense file and then processed overnight as part of the production batch schedule. For detailed functions and policies, please refer to the following link on the state’s website at: http://fin.admin.state.ak.us/dof/accounting_procedures_manual/apm_toc.jsp. Staffing Requirements and Training It is anticipated that key members of AVTEC’s staff will need some level of training themselves in order to effectively manage the new wind energy system and to effectively deliver wind-diesel training to future students. The project’s turbine supplier, Northern Power, raised this issue during a personal visit to AVTEC’s campus earlier this year and expressed their commitment to leading initial training sessions. Northern Power has successfully delivered numerous wind- diesel trainings over the years and will be present during the installation, commissioning, and integration of the proposed project. Moreover, project partners could readily receive this initial training either on site at the AVTEC campus or at Northern Power’s headquarters in Barre, Vermont. Project installation plans have also been developed to incorporate the participation of AVTEC faculty/staff and students. By involving AVTEC in this project, the school will be able to maximize their understanding of project implementation and management procedures. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 28 of 33 11/10/2008 Additionally, students participating or overseeing the project installation will also be able to gain valuable professional skills that would allow them to contribute to Alaska’s growing number of renewable energy projects during future installations. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. As part of the Phase I and II activities of this project, an initial economic analysis and feasibility was conducted. Based upon this analysis, the project benefit/cost ratio is estimated to be 3.10 and the project payback is expected to be 6.15 years. Based on a discount rate of 4%, the project’s projected cost savings have a NPV of $726,823. It is also important to note that projected training cost savings are based on assumptions regarding future wind-diesel programs that do not yet exist. Once the project is completed, AVTEC estimates that they would lead, at the minimum, three training sessions per year for wind-diesel system operators (Beginner, Intermediate and Advanced). Due to the presence of existing wind- diesel systems and their expected growth within Alaska over the coming years through the state’s HB 152 legislation, project members believe that this level of training is both necessary to insure that the state’s investments in alternative energy projects are sustainable/well managed and reasonable considering the number of rural power plant operators that will need new skills to manage these new systems. In calculating expected training savings, project members assumed that three training sessions would be held per year with eight students participating in each session. Historic training costs for similar wind-diesel training held at out of state locations were then compared against projected costs of more comprehensive 12 day training sessions to be held at AVTEC in the future. The difference in these costs (annual savings) was then carried forward throughout the project’s expected operational life. A detailed model of project cash flows can be provided upon request and information about financial assumptions is included on the following page. A summary of this analysis is included below: The next step for the project is to proceed with Phase III activities upon the announcement of grant awards, followed quickly by Phase IV activities. No additional development recommendations have been formulated at this time – additional recommendations will be formulated upon conclusion of Phase III and IV activities. Project Returns NPV Cumulative  Benefit Total Project Costs Discount Rate 3% $875,275 2,197,973$      708,963$        4% $726,823 5% $599,055 Benefit/Cost Ratio Total Grant Request 6% $488,704 3.10 634,968$        7% $393,069 8% $309,914 Payback (Years)Total Match ($) 6.15 73,995$         Project IRR 13.66% Cost/Installed KW 7,090$        Total Match (%) 10% AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 29 of 33 11/10/2008 Assumptions Turbine Estimate ($)351,325$        Permitting Estimate ($)20,000$          Geotechnical Engineering Estimate ($)22,798$          Structural Engineering Estimate ($)14,621$          System Integration Estimate ($)40,000$          Construction Estimate ($)176,224$        Professional Services/Project Management/Other ($)40,000$             Total Contractual Costs 664,968$        In‐Kind (Non‐Cash) Contributions Conceptual Design Contributions (Phase I & II Costs)18,995$          Land Contribution (Estimated Value Leased over Project Life ‐ $316,778)‐$                 Labor/Equipment Contributions 25,000$              Total In‐Kind Constributions 43,995$          Include In‐Kind Land Contribution in Cash Flow Model N Estimated Project Life (Years)20 Estimated Annual O/M Costs ($/kWh)0.021$            Current Energy Price for AVTEC ($/kWh)0.071$            Estimated Energy Price Inflation (%)2.00% Expected Annual Gross Energy Generation (kWh)119,097          Turbine Availability 94% Project Loss Factor (Transmission Loss, Icing, etc. %)10% Estimated Annual Net Generation (kWh)100,756          Estimated Value of REC Sales ($/kWh)0.01$               Estimated Training Sessions Held Per Year (#)3 Estimated Students per Training Session (#)8                       Historic Cost of Out of State Wind‐Diesel Training (Per Student)8,750$            Historic Cost of Out of State Wind‐Diesel Training (All Students‐Per Session)70,000$          Estimated Cost of Providing AVTEC based Wind‐Diesel Training (Per Student)3,450$            Estimated Cost of Transporting Students to AVTEC for Training (Per Student)1,250$            Estimated Cost of Providing AVTEC based Wind‐Diesel Training (Instructor Cost)‐$                 Estimated Training Cost for AVTEC Based Program (All Students ‐ Per Session)37,600$          Estimated Training Cost Savings per Session ($)32,400$          Estimated Annual Training Cost Savings (Total $)97,200$          AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 30 of 33 11/10/2008 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project This project presents an attractive opportunity for the State of Alaska to safeguard the investments that will be made in alternative energy projects across the state over the coming years through the recently certified HB 152 legislation. This project, and more specifically the training programs that will be created through its completion, also presents an opportunity for Alaska to develop a position as a world leader in the utilization, design and management of wind-diesel systems. Currently, no formal training programs for wind-diesel technology exist within the state. This situation represents a growing need that is being left unfulfilled. Due to a lack of formal training programs within the state, wind-diesel stakeholders must currently look elsewhere for this service and, as a result, are incurring costs that could be reduced through the creation of an Alaskan based training program. In this regard, AVTEC exists as one of Alaska’s most capable entities to support a wind-diesel program due to the institution’s mission, facilities, experience leading industrial electricity training, and existing relationships with the state’s rural utilities and the Alaska Energy Authority. In the past, Alaska’s wind-diesel training has been implemented through private industry (members of this project’s group of partners) and federal financial support. While it is expected that some level of federal support can be accessed to support wind-diesel training in the future, project partners also believe that it would be in Alaska’s best interest to support the proposed project due to the projected public benefits including: • reduced training costs for future wind-diesel programs ($97,000 annually), • reduced operating costs for AVTEC’s state owned facilities ($7,300 annually), • revenue from REC sales generated through the project ($1,000 annually), • an ability to support the state’s investments made through the HB 152 legislation (undefined value), • a more skilled network of rural power plant operators (undefined value), • a more capable Alaskan workforce that is prepared for future job requirements The utilization of wind power at AVTEC is also expected to provide benefits that are less quantifiable or non-financial in nature. In this regard, the implementation of this proposed project will not only support current and future wind energy installations within the state, but also help Alaska develop a workforce that is prepared to deal with the energy related challenges and opportunities of the future. Additionally, AVTEC will also be able to support the reduction of greenhouse gasses associated with rail-belt energy generation. While this environmental benefit AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 31 of 33 11/10/2008 can be quantified through emissions calculations and valued through the expected sale of RECs, the project’s complete contribution towards global climate change mitigation efforts is difficult to precisely determine. 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 Project team members have contributed $18,995 in project conceptual design and feasibility study regarding this proposed project. The total grant request for the AVTEC Renewable Energy Fund Wind Project is $634,968 and is based upon the following: Total Project Costs $708,963 Less: Phase I and II Contributed Costs ($18,995) Total Phase III and IV Costs $689,968 Less: Additional Investments ($55,000) Total Grant Request $634,968 The additional investment of $55,000 is inclusive of land, equipment, and labor contributed by AVTEC and committed partners for the completion of this project. AVTEC and project partners also expect to receive additional financial support from the Denali Commission to develop wind- diesel training curriculum through the commission’s training budget. All project cost estimates have been developed utilizing contractor and vendor cost quotes. The professional, contractual and construction cost estimates are also expected to remain valid through the first quarter of 2009. The capital costs for this project are estimated to be $689,968 and development costs are estimated to be $18,995. A completed Grant Budget is attached in included in Section 7: Additional Documentation and Certification. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 32 of 33 11/10/2008 SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 B. Cost Worksheet per application form Section 4.4.4 C. Grant Budget Form per application form Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. F. CERTIFICATION AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application Page 33 of 33 11/10/2008 LIST OF ADDITIONAL DOCUMENTATION AND CERTIFICATION: A. Resumes of Applicant’s Project Manager, Key Staff, Partners and Suppliers 1. AVTEC Management Team Resumes 2. Project Manager – STG Incorporated – Resumes 3. Contractor/Project Partner Resumes i. Duane Miller Associates LLC ii. Hattenburg, Dilley & Linnell LLC iii. BBFM Engineers iv. Northern Power B. Cost Worksheet C. Grant Budget Form D. Electric Version of Application (Attached on CD Rom) E. Governing Body Resolution F. “AVTEC Renewable Energy Fund Wind Project Supporting Documents” 1. Project Match Documentation 2. Alaska Wind-Diesel Applications Center (WiDAC): Draft Concept Brief 3. Northwind 100 Turbine Specifications 4. Northern Power Training Schedule G. Letters of Support 1. Clark Bishop, Commissioner, State of Alaska Department of Labor 2. AVTEC Board of Directors AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Resumes of Applicant’s Project Manager, Key Staff, Partners, Consultants and Suppliers AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 AVTEC Management Team Resumes AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Project Manager Resumes STATEMENT OF QUALIFICATIONS                 11820 S. Gambell Street • Anchorage, Alaska 99515 • Phone: (907) 644‐4664 • Fax: (907) 644‐4666  info.stginc@gci.net • www.stginc.cc  Over the past fifteen years, STG, In remier construction services and management company. Dealing mainly in rural Alaska, the company has played a major role in high profile projects such as wind energy installations, communication tower installations, and community bulk fuel and diesel generation upgrades, to name a few. STG specializes in remote project logistics, pile foundation installations, tower erections, and construction management. STG takes pride in its wealth of experience, gained from years of work throughout “bush” Alaska, and through its ability to deal with the diverse and challenging logistics and conditions which it encounters on nearly every project it undertakes in remote locations.  Company Overview In 1996, St. George Construction was incorporated as STG, Inc. Since incorporation, STG has become the preferred construction management company for both the Alaska Energy Authority (AEA) and the Alaska Village Electric Cooperative (AVEC). Many of the projects executed by these two entities are managed and constructed by STG. STG’s core competencies include bulk fuel systems, power plant construction (both modular and steel-framed), wind farms, and pile foundations (driven piles, post tension rock anchors, helical anchor systems, freeze back, and active refrigerated piles). STG is the prevalent pile foundation contractor for Interior and Western Alaska. Additionally, STG has expanded to become United Utilities’ preferred contractor for its “Delta Net Project”, which involves the installation of communication towers and related equipment throughout the Yukon Kuskokwim Delta. STG has achieved this preferred status by demonstrating competitive rates and the ability to perform in remote locations with extreme logistical challenges. Qualifications The STG team has developed and maintained the capacity to manage projects through a set of key deliverables to ensure appropriate management of jobs across the complete project cycle including: • Provision of a quality project at a fair and reasonable price • Timely delivery within budget • Safe and professional performance on all work • Positive relationships with clients to ensure that project deliverables are met • New modern equipment that results in high productivity • State of Alaska Professional Land Surveyor (Reg. 10192) on staff with modern Topcon GPS Control through Detailed Project Planning STG focuses pre-construction efforts on planning and preparation. A project team is identified which includes management, administrative, and field supervision personnel. The team establishes budgets, c. has grown and developed into a p production targets, a master construction schedule, and detailed work plan for each project. The planning process involves key supervisory personnel as all aspects of the project are analyzed with particular attention to logistics, labor and equipment resource needs, along with specific material requirements. This results in a clear understanding of the goals of the client, the ontractual requirements, scope of work, and entification of potential obstacles that may impact ion of the job. ough to the administrative level , accurate documentation and reporting, and on to the field level where clear goals of roduction and quality are reinforced through the superintendent’s and foremen’s daily huddles and ost Containment anagement decisions. The project manager and field ork together through this reporting y potential problems and direct resources rform “crisis management” while providing clients with TG employees ’s civic responsibility to local c id the successful complet The project-planning phase also establishes key systems which help assure quality throughout the project. This begins at the management level with a commitment to providing a quality project to the client and carries thr with timely p schedule reviews. C STG maintains budgets for all labor, material, and equipment for each project allowing managers to effectively manage project costs. Expense categories are tracked and updated weekly by the project managers and this information is then communicated to the field pervision level for use in making timely, proactive su m superintendent w system to identif as required to address issues before they impact the work. This proactive approach prevents STG from having to pe on-budget, on-time, turnkey deliveries of completed projects built to engineered specifications. STG maintains a philosophy to deliver the highest level of quality within the industry. S also realize the company’s commitment to its clients along with STG communities. The work that STG performs is a reflection of this commitment. Construction Management and Project Supervision Experience STG has built a reputation of professionalism an products within a set schedule and defined budget. construction services and management contracts wit • Alaska Village Electric Cooperative (A • Alaska Energy Authority (AEA) • United Utilities Inc. (Recently acquire STG has built a wealth of knowledge d thoroughness by delivering the highest quality As a result, STG has been awarded and maintains h the following clients: VEC) d by GCI, Inc.) and experience for lanning, execution, and completion of projects across ral Alaska. Over the years, STG has also enjoyed the ay of he company prides itself in its ability to professionally eal with all the different entities that are related to a roject. In this regard, STG maintains a close working relationship with AVEC’s engineering presentatives, a so id relationship with the AVEC management staff, along with strong connections to rs and vendors across the state of Alaska. e-of-the-art dump trucks, loaders, excavators, pile ural construction projects. During the efficiently supported logistically from two cation shop located in Anchorage, AK and its ons, company construction crews are fully needs that may arise during the course of the p ru opportunity to successfully implement a large arr projects specifically for AVEC including bulk fuel upgrades, diesel power, wind generation, and energy distribution systems. STG can also coordinate all project logistics from procurement, to transportation, to the final project demobilization. T d p re l various sub-contracto STG operates a modern fleet of fourteen cranes, stat drivers, and other equipment needed to support full scale r construction phase of STG projects, remote field crews are STG offices: the company’s headquarters and fabri staging yard located in Bethel, AK. From these locati supported in the field for parts, groceries, and any other project. STG Projects Selawik Power Plant, Tank Farm, and Wind Turbine Installation Client: AVEC Year Completed: 2004 The Selawik Bulk Fuel Upgrade Project exemplifies STG’s diverse capabilities. STG was highly he tank farm and power plant. The company executed the pile site, erected four 65kW wind turbines, of pipelines. n Kasigluk, STG once again demonstrated its abilities to execute omplex, multi-faceted projects. This project entailed transferring primary power generation from Nunapitchuk to Akula Heights while maintaining power generation to these two villages and also m intaining power to Old Kasigluk. As part of this project, STG constructed a new bulk fuel retail facility for the communities of Akula Heights and Old Kasigluk along with a new bulk fuel storage facility, totaling over 600,000 gallons of storage capacity in all. This project also included the construction of a power distribution system to the three aforem villages, the installation of a new diesel generation plant, the erection of three 100 kW wind turbines, the installation of a heat recovery system, upgrades to the school districts bulk fuel facilities, and the installation of a standby generator in Nunapitchuk. involved with the planning and design of t foundation work, fabricated ten 50,000 gallon storage tanks on- and tied the completed system together with a complex network Nunapitchuk-Kasigluk Bulk Fuel Upgrade, Power Plant, and Wind Turbine Installation Client: AVEC Year Completed: 2006 I c a entioned Toksook Bay Power Plant, Wind Generation, and Interties and Nightmute are located in Western Alaska on Nelson Island, an ideal installation of 23 miles of ower lines. STG orchestrated schedules, equipment, materials, field work and logistics to successfully bring this project to completion. Due to the impassible summer tundra conditions, all the intertie work took place in the winter season during sub-zero temperatures. many different levels of scope. iversity in rural construction and e Alaska Energy Authority the set-up, installation, and ties along the middle g the winter Client: AVEC d: 2008 Year Complete oksook Bay, Tununak,T location for wind generation. STG helped deliver a wind/diesel integrated power project for these communities. With three Northwind 100kW wind turbines and a new power plant complete with switch gear and heat recovery module in Toksook Bay, power can now be produced from either diesel fuel, or the natural powers of the wind. In order to capture the greatest value for all island residents, an intertie etwork was established, which connected the three communities through the n p Additional STG Projects STG has completed numerous projects for AVEC throughout the state on The company would also like to highlight a few other examples of its d management for other clients. STG has managed and constructed over a dozen bulk fuel upgrades for th across the western half of Alaska. The most notable of these projects was commissioning of eight modular power plants in eight unique communi Kuskokwim River. The units were built and prepared in STG’s Anchorage yard durin months, then delivered and installed on each site during the short summer season. The company has also gained valuable experience dealing with tower erection and foundation design. ontract with UUI, STG has built foundations for, and has erected, over thirty hroughout western Alaska. This project, known as the Delta-Net Project, has nked dozens of communities for tele-medicine and broadband communication. Two of the most hich unity of St. Paul. Under its term c communication towers t li notable towers are the 305-foot tower in Eek, and the 60-foot tower on top of Marshall Mountain w also required construction of a five-mile access road from the village of Marshall. STG has grown into one of the most experienced integrators of alternative energy systems within the state of Alaska. In addition to the previously referenced projects, this experience is documented through STG’s work to erect and install two Vestas 225 kW wind turbines for TDX Power on the remote Bering Sea island comm AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Contractor/Supplier Resumes DMA Resume Page 1 of 4 Duane Miller Associates LLC (DMA) 5821 Arctic Boulevard, Suite A Anchorage, AK 99518-1654 (907) 644-3200 Duane Miller Associates LLC (DMA) was established as Duane Miller & Associates in 1982 to provide geotechnical engineering and consultation in the problems unique to Alaska. The firm has evolved to a consultancy of engineers and geologists, all of whom have many years of Alaskan experience. The two senior consultants, Principal Engineer Duane Miller, P.E., and Principal Geologist Walt Phillips, C.P.G., each have more than 30 years experience with Alaskan projects. With a total of 17 Alaskan geotechnical engineers, geologists, laboratory technicians and administrative/IT support staff, DMA can address any geotechnical issue throughout Alaska in a timely basis. Professional staff at DMA consists of four Alaska licensed geotechnical engineers and one Alaska licensed geologist. We have five geologists and four EIT-level engineers. We have a full time geotechnical laboratory manager and one lab technician. Administrative and IT personnel support the professional staff. We are located at 5821 Arctic Blvd. in Anchorage, Alaska with our laboratory facilities, including our walk-in testing freezer, in the same building. DMA project 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. Field work is most often preceded by collection of available data from previous projects and examination of existing aerial photographs. DMA maintains an extensive library of past geotechnical reports prepared by us and other geotechnical service providers. These reports include data from most of the communities in the state. Our laboratory is equipped to perform nearly every primary soil test along with secondary strength and consolidation tests for undisturbed or remolded soil. The laboratory has a walk-in freezer for the storage and testing of frozen soils. DMA’s client base primarily includes major oil companies and other consulting engineers. Typical rural projects include improvements to sanitation systems through contracts administered by Village Safe Water (VSW) and ANTHC, hospital projects through the Indian Health Service (IHS), improvements to bulk fuel, wind farm, and diesel power plant facilities through AVEC and ADC&RA Division of Energy, rural housing through regional and local housing authorities, rural airfields and roads through DOT&PF and BIA, and school projects through regional school districts. DMA Resume Page 2 of 4 We pride ourselves on bringing custom geologic and geotechnical engineering solutions to many of Alaska’s most demanding foundation engineering problems, particularly in arctic and subartic conditions, from remote village projects necessary to improve local well-being to major industrial oil and gas projects important to our nation’s energy and security needs. Every geotechnical project undertaken by DMA has a principal or senior staff geotechnical engineer AND geologist assigned to properly scope our customer’s needs and expectations. As an important first step, our senior staff works closely with each customer to properly balance Scope, Schedule, Quality and Cost prior to finalizing a Notice to Proceed for three key reasons. First, this dialog defines our field, laboratory, and engineering objectives for all parties. A clear and concise definition of a project’s objectives is fundamental to our management philosophy. Second, this dialog provides the basis for project management decision making as field findings and project needs evolve. Third, this dialog establishes our role in the project’s scheme in terms of Chain of Command, site safety, and compliance with environmental documentation/requirements. The planning effort does not stop at the completion of the field effort. Upon completion of each field phase, field logs, geotechnical samples, field notes, geotechnical instrumentation data (ground temperatures, CPT data, piezometer, etc), photographs and GPS/GIS data are summarized. Laboratory effort is prioritized and managed through our Laboratory Manager with weekly updates on laboratory status to the Project Team. This permits refinement on laboratory schedules and scheduling engineering team effort to coincide with laboratory effort. Geology and engineering efforts are developed in tandem at the project level. We strongly believe that our success is based on treating geology and engineering as equally important elements of a project deliverable. This is the key reason a senior or principal level geologist and engineer are assigned at the very earliest stages of a project scoping effort. DMA maintains an extensive in-house library of both DMA and third-party geotechnical studies from nearly every area of Alaska. In-house studies are DMA efforts that start with the initial work effort by Duane Miller when he started DMA. This system spans over 1,000 separate reports retrieved by Lat/Long, site, work type, region, permafrost conditions and other search terms. This in-house database permits immediate retrieval of boring log and laboratory data, Alaskan ground temperature data dating back to the late 1970s, and geologic interpretation and engineering recommendations. Our system provides a notification of proprietary data that cannot be used without the customer’s DMA Resume Page 3 of 4 authorization. This database was developed internally and is unique is its ability to capture and retrieve key project information as part of the scope refinement process. In additional to our internal database system, we maintain a hardcopy file of many obscure and hard to locate third-party geotechnical reports. These reports often provide site specific geotechnical and ground temperature data from the late 1960s through today. These data are very useful in establishing a site history as part of a new scoping process. We maintain these hard copy reports by village location or by North Slope oil and gas project area. We also maintain a large collection of US, Canadian, and Russia (Federation and Soviet era) geotechnical research papers, some the founding work efforts in permafrost engineering. While most recent permafrost research efforts are available digitally through the Internet, many of our internal research papers are not commercially digitized and are very valuable in constructing design analysis spreadsheets or understanding the technical basis – and limitations – developed as part of the original research. DMA has seven experienced engineers/geologists able to supervise large, complex geotechnical field investigation projects. Two, Duane Miller and Walt Phillips bring a combined 75+ years of Alaskan experience to schedule, budget and resource assignment to any geotechnical effort regardless of size, locations or logistical complexity. Duane and Walt have successfully conducted concurrent large, complex geotechnical investigations for major oil and gas projects on the North Slope where remote camps, fuel logistics and Rolligon/helicopter support elements were necessary in areas of extreme environmental sensitivity. In additional to Duane and Walt, four senior personnel at DMA: Richard Mitchells, Susan Wilson, Jeremiah Drage, and Daniel Willman bring strong field geotechnical supervision capabilities. All four have experience with helicopter sling drilling operations, coring projects, remote camp and Alaskan ‘Bush’ experience. DMA field geologists/engineers including Nathan Luzney, Jeff Kenzie and Heather Brooks each bring field experience managing day-to-day drilling operations and logistical support for field projects. DMA maintains a complete in-house field sampling program for nearly any geotechnical investigation need. Unique to cold regions field investigations, we have developed a continuous sampling system that eliminates the need for refrigerated coring. Of particular importance for arctic and subarctic geotechnical field efforts is the need to collect reliable ground temperatures. We have adopted digital temperature measurement systems to accurately capture ground temperature data. DMA Resume Page 4 of 4 DMA engineers are peer recognized experts in cold regions geotechnical engineering as well as unfrozen ground geotechnical engineering. We have four geotechnical engineers licensed in Alaska and one Alaska licensed geologist. In unfrozen soil conditions, we adhere to geotechnical engineering designs using NAVFAC DM-7 and USACE EM-1110-1 and EM-1001-2 series design manuals. In addition, we rely on computer aided engineering support for many projects using Apile, Lpile, GRL-WEAP, PYWall, Reame, and a variety of other limit equilibrium slope analysis software tools. Our engineering staff also has expertise in seismic analysis capabilities, augmented with ProShake and Newmark displacement analysis software analysis tools. We are able to conduct liquefaction analysis using methodologies developed by Youd, et. al. as part of the NCEER Workshop Evaluation on Liquefaction. Since virtually no commercial engineering design software has been developed for cold region foundation engineering, DMA has developed and maintains an in-house library for cold regions foundation design, ranging form codified US Air Force/Army TM 5-852-4 (Arctic and Subarctic Design Manual) to salinity based primary and secondary creep in ice poor and ice rich permafrost as developed by Nixon, Sego and Bigger, CRREL, and Sayles. We also use Temp/W for finite element thermal analyses on our cold regions projects. We maintain a comprehensive internal climate database using six key climate centers (Barrow, Bethel, Nome, Kotzebue, Fairbanks and Gulkana) of daily climatic and temperature records from at least 1940 through present. In addition, we maintain a comprehensive temperature database for Prudhoe Bay with daily temperatures from the mid 1960’s. These data are used to forecast warming trends for air temperature and freezing or thawing indices throughout arctic and subarctic Alaska. DMA conducts groundwater analysis as part of our routine geotechnical assessments for foundation design and embankment seepage analysis. We rely on specialized third-party providers for more detailed groundwater analysis, if necessary. 3333 Arctic Boulevard, Suite 100 Anchorage, Alaska 99503 Phone: (907) 564-2120 Fax: (907) 564-2122 Our Firm. Hattenburg Dilley & Linnell LLC (HDL), is an engineering firm specializing in “client-focused” planning, civil engineering, transportation engineering, project management, earth science, geotechnical services, construction administration, and material testing. Scott Hattenburg and Lorie Dilley started Hattenburg & Dilley in July 2000. Dennis Linnell joined the firm in March of 2002, creating HDL. Our principals are actively involved with projects and are hands-on managers. We have structured our firm to produce a quality-centered, client focused atmosphere to provide you with superior services. Our main office and U.S. Corps of Engineer and AASHTO certified soils laboratory is located in Anchorage and we maintain a branch office in Palmer. HDL maintains a seasoned full-time staff of thirty-six (36), including seven licensed professional engineers, one professional surveyor, two geologists, three construction inspectors, two roadway designers, five engineers-in-training, three civil designers, four engineering technicians, one environmental specialist, and four administrative support personnel. We use state-of-the-art, field-to-finish civil software and computer hardware. Our workstations are equipped with a variety of the latest software including AutoCAD Release 2008, Land Development Desktop and Civil Design Software, Rockware Rockworks and Logger, Microsoft Office, MS Project, Adobe Photoshop and Illustrator, geotechnical software, and Topo Maps 3D. Our computer design personnel are high production graphic oriented technicians experienced with generating presentation graphics, drawings, engineering plans, and 3-dimensional graphic products. COMPANY OVERVIEW 2 Principal Engineer Area of Practice Scott L. Hattenburg, P.E. Civil Engineering Airports, Bulk Fuel, Utilities Mr. Hattenburg has over 25 years of planning, design and construction administration experience in Alaska. Mr. Hattenburg has been in responsible charge of managing over 500 civil engineering projects with single project budgets exceeding $18 million. His areas of expertise are multidisciplinary project management, cold regions engineering, airport planning and design, capital projects planning and programming, and estimating. Lorie M. Dilley, P.E., C.P.G. Geotechnical Engineering and Geology Ms. Dilley has over 20 years of experience and is a geotechnical engineer with a broad background in the geological sciences. Her areas of expertise are geotechnical engineering, material evaluation, geology, thermal analysis and geothermal exploration. She has conducted over 400 geological and geotechnical projects throughout Alaska, including numerous shallow and deep foundations in rural Alaska and unique projects such as preliminary foundations for wind turbine towers and developing a new method, for geothermal reservoir assesments. Dennis Linnell, P.E. Transportation/Civil Engineering Mr. Linnell is a life-long Alaskan with over 20 years of civil engineering experience, with expert knowledge of highways and municipal street projects. He has been involved with the planning, design, or construction management of over 60 road projects through Alaska. He has served as the Project Manger and Project Engineer, developing design study reports for some of the larger highway and roadway projects undertaken in Alaska over the last ten years. Dennis is active in the local engineering community and was selected as the 2000 Engineer of the Year by the Institute of Transportation Engineers, Alaska Section. 3 ; Site Development ; Water and Sewer System Design ; Community and Regional Planning ; Project Programming ; Airport Planning and Design ; Bulk Fuel, POL and Pipelines ; Geotechnical Engineering ; Geothermal Resources ; Wind Power ; Geochemistry ; Soil, Aggregate, Concrete Testing ; Construction Administration ; Environmental Services and Permitting ; Surveying ; Road and Transportation Engineering CIVIL ENGINEERING HDL provides civil engineering services to a wide variety of clients throughout Alaska. These projects include civil site design, grading plans, and designs for utility improvements. AIRPORT PLANNING, DESIGN HDL offers airport master planning services as well as design of taxiways, runways, access roads, and related facilities. We also have conducted wind studies using our instrumentation expertise. Scott Hattenburg, our principal airport engineer has completed over 35 airport-related projects and has a 16 year working history with the FAA. We specialize in rural and city-owned airports. ƒ City of Wasilla Airport Master Plan ƒ Palmer Southwest Utility Extension to the Matanuska Valley Medical Center ƒ Valley Pathway School Site Design ƒ Alaska Zoo Entrance Site Design ƒ Chugach Alaska Office Building Site Design ƒ City of Palmer Sherrod Building ƒ ACS Parking Lot Design ƒ Palmer Airport Forestry Parking Lot ƒ Southcentral Foundation Primary Care Facility, Iliamna ƒ Wasilla Sewer Master Plan ƒ City of Palmer Headworks Building ƒ Chugach Street Water Replacement ƒ Helen Drive Utility Improvements ƒ South Anchorage Substation ƒ Nome Power Plant ƒ Elmendorf Fuel CEU Maintenance Hangar OUR SERVICES 4 ƒ Red Dog Mine Airport Planning ƒ Kaktovik Airport Master Plan ƒ Seldovia Airport Master Plan ƒ Merrill Field Access Road Reconstruct ƒ City of Palmer Airport Improvements ƒ City of Wasilla Airport Apron Improvements ƒ Nondalton Wind Study ƒ Rural Airport Embankment Evaluation: Chevak, Chefornak, Tuntutuliak & Kipnuk RURAL ENERGY We manage all phases of rural energy projects from the concept phase through final completion of construction. We provide in-house civil, geotechnical, and environmental phase services for these projects. HDL currently has two term agreements for design of rural energy projects: one with Alaska Energy Authority and the other with Alaska Village Electric Cooperative. In addition to the rural energy projects we have two certified tank inspectors on staff and have produced a number of Spill Prevention Control and Countermeasure (SPCC) Plans for the State and private companies throughout Alaska. ƒ Middle Kuskokwim Regional Energy Project (Sleetmute, Stony River, Crooked Creek, Chuathbaluk, Red Devil, Aniak & Takotna) Concept Design, Design, and CA ƒ White Mountain Bulk Fuel CA ƒ Koyukuk Power Plant and Bulk Fuel Facility Design and CA ƒ Chevak Power Plant & Bulk Fuel Facility Concept Design ƒ Noatak Bulk Fuel Concept Design ƒ Hooper Bay Bulk Fuel Concept Design ƒ Mountain Village Bulk Fuel Concept Design ƒ Koyuk Bulk Fuel Facility Concept Design, Design and CA ƒ Nunapitchuk/Kasigluk Amalgamated Energy Concept Design and Design ƒ Golovin Bulk Fuel Facility Construction 5 GEOTECHNICAL ENGINEERING HDL’s geotechnical division provides foundation design recommendations for a wide variety of structures including power plants, transmission lines, bulk fuel facilities, substations, roads, bridges, and buildings. We have developed pile recommendations for warm permafrost, cold permafrost, and organic rich soils. We have specialties in thermal analysis, instrumentation, and geochemical assessments. Given the nature of soils in Alaska we offer creative solutions to the more common foundation problems. ƒ Nome Power Plant Foundation – Dynamic Compaction of Loose Soils ƒ Merrill Field Access Road – Dynamic Compaction of Landfill ƒ Unalaska Power Plant Foundation and Site Selection ƒ Chugach Electric Transmission Line for South Anchorage ƒ Nunapitchuk/Kasigluk Helical Pier Foundation for Wind Towers ƒ Helical Anchor Design for Multiple Subdivisions ƒ Thermal Analysis of Four Rural Airport Embankments ƒ Parks Highway Geotechnical Study MP 72-83 ƒ Foundation Design for F-22 Fuel Maintenance Hangar ƒ Quarry Source Assessment for Village of Elim GEOTHERMAL RESOURCES HDL’s geotechnical group has been actively involved in the development of geothermal resources. We offer a wide range of geological and geochemical services for the exploration and development of geothermal power in Alaska. We are developing a new method, Fluid Inclusion Stratigraphy (FIS), based on measuring the gas concentrations trapped within minerals for evaluating the hydrological regime in geothermal reservoirs. This low cost, rapid, logging method can be used as the well is being drilled to determine if hot reservoir fluids have been encountered and if permeable zones exist in the well. We are also working under a grant from the US Department of Energy on using this technique for determining fracture locations in Enhanced Geothermal Systems. We work closely in collaboration with the Department of Earth Sciences of New Mexico Tech and the Energy and Geoscience Institute at the University of Utah. ƒ Preliminary Feasibility Study – Pilgrim Hot Springs – Alaska Energy Authority ƒ Preliminary Geological Evaluation – Naknek Geothermal Sources ƒ Fluid Inclusion Stratigraphy – New Tool for Geothermal Reservoir Assessment: Coso Geothermal Field, California – California Energy Commission ƒ Identifying Fractures using FIS in Enhanced Geothermal Systems – Department of Energy ƒ 2D and 3D Fluid Model of Coso Geothermal Field, California – US Navy Geothermal Program Office 6 WIND POWER HDL provides civil engineering solutions for the development of wind power in Alaska. We have provided foundation design recommendations, permitting and civil engineering services. AVEC has been instrumental in developing wind power in rural Alaska and the firm has worked closely with AVEC on these technically challenging projects. We have teamed with an Alaskan construction company and a wind turbine manufacturer to create the Alaska Wind Resource Group (AWRG). ƒ Prototype Designs for the AOC Wind Turbine Foundations, Various Villages - AVEC ƒ Nunapitchuck/Kasigluk geotechnical and civil design for Northwood 100 turbines - AVEC ƒ Hooper Bay geotechnical and permitting for three Northwind 100 turbines - AVEC ƒ Chevak geotechnical, permitting and civil design for four Northwind 100 turbines - AVEC ƒ Nome/Bering Straits Native Corp wind turbines permitting for 18 Entegrity 60kW turbines CONSTRUCTION ADMINISTRATION AND MATERIAL TESTING Our construction quality control programs typically include our strong daily presence on the jobsite. Our field technicians maintain contact with project managers and the client representative through daily reports and weekly status reports. We are typically responsible for certifying compliance with shop drawings; measuring quantities of pay items; auditing survey data (line, grade, and quantities); computing quantities; monitoring yields and overseeing field adjustments; performing and managing materials inspection; inspecting workmanship; preparing directives, change orders, and supplemental agreements; preparing periodic/final payment estimates and reports; confirming materials/equipment tests; coordinating off-site inspection services by others; analyzing construction contractor claims if any, and maintaining photo record of construction. Our laboratory technicians provide testing in accordance with ASTM, AASHTO, ATM, and WQTEC testing standards for soil and concrete. Our laboratory is certified by US Army Corps of Engineers, AASHTO, and concrete to conduct a wide variety of soil, concrete, aggregate, and grout testing. We can provide both ACI certified concrete and NRC certified nuclear equipment field technicians. The laboratory maintains nuclear densometers, concrete field sampling equipment and laboratory concrete strength testing equipment. In addition, we maintain triaxial strength testing equipment, permeability testing equipment, and consolidation testing equipment for non-routine soil testing. 7 ƒ Glenn-Bragaw Interchange, DOT, Anchorage ƒ Taxiway Alpha Construction, Palmer ƒ Division of Forestry Fire Retardant Loading Facility, Palmer ƒ Highland Subdivision Road Reconstruction, Palmer ƒ Nome Power Plant Pad Construction, Nome ƒ Fuel Maintenance Hangar and Taxiway, Elmendorf AFB ƒ Eagle-Gulkana Street, Palmer ƒ Wasilla Airport Apron Construction, Wasilla ƒ Nome Power Plant Concrete Testing, Nome ƒ Wasilla Airport Apron Construction, Wasilla ENVIRONMENTAL AND PERMITTING Our environmental and permitting team provides all phases of environmental documents and permitting for a wide range of engineering projects. We are skilled in the NEPA process having completed many Environmental Reviews, Environmental Checklists, and Environmental Assessments. Our services include Phase 1’s; Wetland Delineation; Wetland Functional Assessment; Hydrology Assessments; Section 7 Consultation; and Government to Government Consultation. We have permitted airports, roads, bulk fuel facilities, power plants, water and sewer improvements, site layouts, and wind generators. ƒ Palmer Airport Apron Categorical Exclusion ƒ Barter Island Airport Phase I Environmental Site Assessment ƒ Palmer Airport Phase I Environmental Site Assessment ƒ Nunapitchuk/Kasigluk Amalgamated Energy Improvements ƒ Middle Kuskokwim Regional Energy Project ƒ Chugach Electric South Anchorage Substation Storm Water Pollution Prevention Plan ƒ Hatcher Pass Scenic Outlook Storm Water Pollution Prevention Plan ƒ Seldovia Airport Master Plan Permits ƒ Hooper Bay Wind Turbine Environmental Assessment ƒ Savoonga Wind Turbine FAA Permits ƒ Chevak Energy Upgrades Permitting ƒ Government to Government Consultation with Native Village of Kaktovik ƒ City of Palmer Water and Sewer Extension Permits ƒ Kipnuk New Airport Stream Gauging SURVEYING At HDL we understand that land surveying is often the starting point for the design of a project. As such, we realize how important precise, quality field data can be in starting your project in the right direction. Our field crews and office technicians are equipped with the latest survey equipment and software. We have recently acquired a new conventional and GPS survey equipment system that easily integrates traditional survey techniques with Static and Real-Time Kinematic GPS surveying. This new system utilizes GPS and Russian Glonass Satellites enabling us to gather data in areas previously unsuitable for GPS surveying. As part of this system we have developed an innovative data collection process which uses comprehensive field coding and data reduction software to quickly 8 transfer field data into final processed information ready for design. This new way of thinking towards surveying providing our clients with precise, quality controlled data for even the most aggressive schedules and budgets. Our experienced survey staff has provided survey services across Alaska for a variety of projects and clients. This experience along with HDL’s commitment to a client focused atmosphere provides our clients with the best possible survey and mapping products. ƒ ALTA/ACSM Land Title & Boundary Surveys ƒ Engineering Design Surveys ƒ Right of Way and Boundary Surveys ƒ Platting for Commercial and Residential Subdivisions ƒ Control for Photogrammetric and LIDAR Mapping ƒ Construction Surveying ROAD AND TRANSPORTATION ENGINEERING Our road and highway design team provides planning, preliminary and final engineering, and peer/quality control review for a wide range of road and highway projects. We manage the right-of-way acquisitions, traffic studies, public meetings and all aspects of providing a complete road design package. ƒ Palmer Dogwood Avenue Extension & Signalization ƒ Anchorage 3rd Avenue Rehabilitation ƒ Seldon Road—Matanuska-Susitna Borough ƒ Parks Highway MP 72-83 Rehabilitation ƒ Palmer Evergreen & Gulkana Street ƒ Wasilla Church Road Analysis ƒ Parks Highway MP 44-52.3 Upgrade ƒ Wasilla Crusey Street Improvements ƒ Wasilla Lucas Road Improvements ƒ Palmer Chugach Street ƒ Wasilla Transportation Plan Update BBFM Engineers, Inc. 510 L Street, Ste 200 Anchorage, AK 99501 Phone: 907-274-2236 Fax: 907-274-2520 Company Overview Alaska Business License 218579 MBE status – N/A BBFM Engineers Inc. is an Alaskan company specializing in structural engineering design. The principals of BBFM Engineers are: Dennis L. Berry PE, Forrest T. Braun PE, Troy J. Feller PE and Colin Maynard PE. All four principals were either raised or born in Alaska. The company was established in 1996; however, the principals have been working together for over 18 years (in fact, two have been working together for over 30 years). The ten structural engineers and four drafters make BBFM Engineers one of the larger structural engineering staffs in the state. BBFM Engineers has been fortunate to average over 150 projects per year, on a variety of different project types using several different delivery systems. Over 80% of our work comes from repeat clients. Over the years, BBFM Engineers has received numerous awards for a variety of facilities—for public and private clients. The engineers have worked with all of the various structural materials in designs for structures in over 150 different communities around the state: from Ketchikan to Shemya, from Kodiak to Barrow. BBFM Engineers prides itself on working within the constraints set by nature, and the owner, and finding a solution that is not only structurally sound, but also cost effective and, when exposed, aesthetically pleasing. BBFM Engineers has a proven record of successful work on small, large and medium projects. This experience has been gained over the last 11 years (up to 34 years for the principals) on projects all over Alaska for military and civilian clients. We are aware of the level of production effort and coordination that is necessary for the development of high quality construction documents. In addition, we understand the level of management required to ensure that a quality product is produced. Our firm has a depth and breadth of experience with Alaskan Arctic projects to its credit and we are skilled in providing cost-effective, creative design solutions to meet the needs of our clients. Our engineers are experienced team players who are flexible and responsive to client needs. Project Experience BBFM Engineers has completed more than 80 building and tower projects in the Yukon Kuskokwim Delta and Northwest Alaska. We have experience designing tower foundations in many of the different geotechnical conditions that exist throughout Northwest Alaska. We have designed tower foundations in 12 different villages in soil conditions ranging from marginal permafrost in deep silty soils, to mountain top bedrock. Page 2 of 4 Resources BBFM Engineers has a staff of ten structural engineers (nine licensed), four CAD drafters, an office manager and an administrative assistant. This makes us one of the largest structural engineering staffs in the state of Alaska and, as such, we have the ability to work on projects with aggressive schedules. The engineers work as a team to complete established work schedules and we are able to re-assign staff as needed to meet accelerated schedules. Our staff meets weekly to review the workload and upcoming deadlines. We are capable of adding new design projects soon and having them blend readily into our workload. BBFM Engineers is committed to providing timely services and meeting all project schedules; we know we can bring the Wind Turbine projects to a successful completion. Equipment: BBFM Engineers uses a variety of automated systems to produce quality designs and quality construction documents. For contract documents, the latest version of AutoCAD is used. For specifications, the staff has used a variety of programs including MasterSpec. The office has its own computer network for sharing of databases, communication programs, the Internet, direct modem connections and, of course, complete backup records. In addition, the staff at BBFM Engineers is proficient in the use of computers for structural analysis and design, and uses the following analysis software: • ETABS – Static and Dynamic wind and seismic lateral load analysis software for multi-story buildings • STAAD III – General 3D Finite Element Analysis for both large and small projects including vertical, and wind and seismic lateral loadings. • ENERCALC – Miscellaneous element design for individual beam column wall and footing design in concrete, masonry, steel, and wood and well as general seismic and wind design. • PCAMats – Concrete Mat Analysis Program used for the design of large mat foundations supporting multiple columns. • WoodWorks – A software package for the design of various wood components including plywood sheathed shear walls. • ADAPT – A post-tensioned concrete software package used to assist in the design of post-tensioned concrete slabs. • RAM Structural Systems – A computer program that analyzes and designs concrete and steel buildings, considering dead, live, snow, snow drift, wind, and seismic loads. RAM also converts the output into Autocad drawings, creates a list of all structural steel members in the building, and totals the structural steel weights. • SAFE – This program assists with the design of flat slabs, foundation mats, spread and combined footings based upon the finite element method and also includes 3D modeling. These programs allow us to work very efficiently and coordinate the design with the drafting effort. EXECUTIVE SUMMARY Northern Power Systems – The company behind the Northwind 100 Northern Power (a subsidiary of Distributed Energy Systems) has extensive experience installing and commissioning successful wind turbine and wind-diesel integration projects all over the world. The company has integrated wind turbines of various sizes in remote and grid connected locations for over 30 years, and it’s personnel, technical expertise, and product technologies are unparallelled. The NorthWind®100 Wind Turbine The Northwind 100 combines best-in-class technologies to deliver high performance and long- term reliability in a 100kW turbine that is at once leading edge and proven. The turbine’s performance and reliability can be attributed to three main technology advances: • A gearless design that dramatically reduces part counts and offers a package that is simple and rugged at the same time. • A permanent magnet power generator which is highly efficient, dependable, and completely eliminates the need for messy power hydraulics. It provides high energy capture - so you can get the most from the wind you have. • An advanced power electronics system which was designed by the Northern team and optimized specifically for wind turbine operation. The system is inverter coupled and can perform AC-DC-AC conversion with a perfect sinewave output Together, these advances equate to excellent power production and low lifetime O&M costs, and thus lower life cycle costs. The Northwind 100 wind turbine was designed in partnership with NASA, NREL and NSF to provide reliable and efficient power in remote and extreme weather environments. The evolution of the product has made it cost effective for grid-connected sites as well as remote sites. Over time, Northern’s focus on continuous improvement has resulted in efficiency gains and a reduction in the effort required for turbine installation and service. Every turbine comes standard with one concurrent user license (CUL) of Northern’s proprietary and web-based SmartView software. Smartview gives turbine owners a view of their turbine’s real-time and historical performance – as well as supervisory controls - from a desktop anywhere in the world. Also standard is a 2-year parts only warranty. (extended warranties available) Installed Base Northern Power has various turbines, which it has designed and manufactured, operating all over the globe from the Arctic to the Antarctic to the equatorial regions and many sites in between. Sites such as Black Island, Antarctica; Kasigluk, Alaska; and Pulau Perhentian, Malaysia are operational and continually proving the efficiency and dependability of our wind turbines and our system integration capabilities. The Northwind 100 is currently reaching a critical mass in the YK delta region of Alaska. With multiple turbines installed at two Eskimo villages (3 @ Toksook and 3 @ Kasigluk) and an additional four villages (4 @ Chevak, 3 @ Gambell, 2@ Savoonga, and 3 @ Hooper Bay) scheduled for multiple turbine installations this summer (2008) in the same region, the fuel savings and energy dependability for the region is unparalleled. Recently, the installed base of Northwind 100 turbines in Alaska logged over 2 million kilowatt-hours of production to date. AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Cost Worksheet Renewable Energy Fund RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1 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. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 4.7 m/s Average Wind Speed 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 Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for 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] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] 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 RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 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 100 kW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 100,756 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 $689,968 b) Development cost $18,995 c) Annual O&M cost of new system $2,501 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 100,756 kWh ii. Heat 0 iii. Transportation 0 b) Price of displaced fuel $7,297 Annually c) Other economic benefits $1,008 Annual REC Sales d) Amount of Alaska public benefits $97,200 Annual Wind-Diesel Training Savings 6. Power Purchase/Sales Price a) Price for power purchase/sale $.05 est. Renewable Energy Fund RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 3.10 Payback 6.15 Years AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Grant Budget Form AVTEC RENEWABLE ENERGY FUND WIND PROJECT GRANT BUDGET FORM BUDGET INFORMATION BUDGET SUMMARY: AVTEC RENEWABLE ENERGY FUND WIND PROJECT Milestone Federal Funds State Funds Local Match Funds (Cash) Local Match Funds (In- Kind)Other Funds TOTALS Phase I and II Tasks (Reconnaissance, Feasibility & Conceptual Design) 1. Initial Renewable Resource Review $2,524 $2,524 2. Existing Energy System Analysis $2,828 $2,828 3. Proposed System Design $3,546 $3,546 4. Proposed System Costs Estimations $3,434 $3,434 5. Proposed Benefits $2,524 $2,524 6. Permitting Review $865 $865 7. Analysis of Potential Environmental Issues $750 $750 8. Preliminary Analysis and Recommendations $2,524 $2,524 Total Phase I and Phase II Costs $18,995 Phase III Tasks (Final Design and Permitting) 9. Project Management $10,000 $10,000 10. Perform Geotechnical Analysis $22,798 $22,798 11. Finalize Foundation Designs $14,621 $14,621 12. Finalize System Integration Designs $10,000 $10,000 13. Turbine Procurement $351,325 $351,325 14. Apply for/Obtain Permits $20,000 $20,000 15. Draft Final Operational Business Plan and Training Curriculum $10,000 $10,000 Total Phase III Costs $438,744 Phase IV Tasks (Construction, Commissioning, Operation & Reporting) 16. Project Management $10,000 $10,000 17.1 Foundation Material Procurement $74,008 $74,008 17.2 Mobilization and Demobilization Costs $29,900 $29,900 17.3 Site Access and Foundation Development $13,428 $13,428 17.4 Foundation Installation $30,213 $5,000 $35,213 17.5 Tower/Turbine Erecting $20,142 $20,000 $40,142 17.6 Construction Survey/As-Built Diagrams $5,175 $5,175 17.7 Job Site Clean Up $3,357 $3,357 18. System Integration $20,000 $20,000 19. SCADA/Software Installation $10,000 $10,000 20. Curriculum Finalized and Implemented for Wind Energy Training $10,000 $10,000 Total Phase IV Costs $251,224 Total Project Costs (Phase I, II, III and IV)$20,000 $634,968 $0 $25,000 $28,995 $708,963 Milestone # BUDGET CATAGORIES:1 2 3 4 5 6 7 Direct Labor and Benefits Travel, Meals, or Per Diem Equipment Supplies Contractual Services Construction Services Other Direct Costs $2,524 $2,828 $3,546 $3,434 $2,524 $865 $750 TOTAL DIRECT CHARGES $2,524 $2,828 $3,546 $3,434 $2,524 $865 $750 Milestone # BUDGET CATAGORIES: 8 9 10 11 12 13 14 Direct Labor and Benefits Travel, Meals, or Per Diem Equipment $351,325 Supplies Contractual Services $10,000 $22,798 $14,621 $10,000 $20,000 Construction Services Other Direct Costs $2,524 TOTAL DIRECT CHARGES $2,524 $10,000 $22,798 $14,621 $10,000 $351,325 $20,000 Milestone # BUDGET CATAGORIES: 15 16 17.1 17.2 17.3 17.4 17.5 Direct Labor and Benefits $5,000 Travel, Meals, or Per Diem Equipment Supplies Contractual Services $10,000 Construction Services $10,000 $74,008 $29,900 $13,428 $30,213 $20,142 Other Direct Costs $20,000 TOTAL DIRECT CHARGES $10,000 $10,000 $74,008 $29,900 $13,428 $35,213 $40,142 Milestone # BUDGET CATAGORIES: 17.6 17.7 18.0 19.0 20.0 TOTALS Direct Labor and Benefits $5,000 Travel, Meals, or Per Diem $0 Equipment $351,325 Supplies $0 Contractual Services $20,000 $10,000 $117,419 Construction Services $5,175 $3,357 $186,224 Other Direct Costs $10,000 $48,995 TOTAL DIRECT CHARGES $5,175 $3,357 $20,000 $10,000 $10,000 $708,963 AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Electronic Version of Application (See attached CD Rom) AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 AVTEC Board Resolution AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 AVTEC Renewable Energy Fund Wind Project Supporting Documents 11820 S. Gambell Street • Anchorage, Alaska 99515 • Phone: (907) 644 -4664 • Fax: (907) 644-4666 info.stginc@gci.net • www.stgincorporated.com November 10, 2008 To Whom It May Concern: As the Project Manger of the AVTEC Renewable Energy Fund Wind Project, this letter is to serve as documentation of the contributions made by project partners during the conceptual design phases of this project. To date, the following firms have either offered their services as in-kind contributions that are not reimbursable under the grant accounting procedures. The amounts below are included to document the investments of time and resources that have been invested by project partners to date. Firm Total Contribution STG Incorporated $10,645 Duane Miller Associates $660 BBFM Engineers $775 Northern Power $800 HDL Engineers $115 AVTEC $6,000 Total: $18,995 More detailed cost accounting for this work is available upon request. Signed, James St. George President, STG Incorporated Alaska Wind-Diesel Applications Center (WiDAC): Concept Brief The Concept The Alaska Center for Energy and Power (ACEP), together with its partners the Alaska Energy Authority and the National Renewable Energy Laboratory, proposes to develop a center of excellence in wind-diesel technology that analyses technology options, tests state of the art hardware and control software, educates engineers, trains operators, and provides technical assistance to wind–diesel stakeholders both within and outside the State of Alaska. The purpose of the center, named the Alaska Wind-Diesel Applications Center (WiDAC), will be to support the broader deployment of cost-effective wind-diesel technologies to reduce and/or stabilize the cost of energy in Alaska’s rural communities. To meet this challenge, WiDAC will be organized around the following three focus areas: Independent Analysis and Testing: Provide the State of Alaska with an independent organization that can supply technical and analytical assessments of different energy options. Technical Support: Provide rural Alaskan communities with the information needed to evaluate, implement, and operate appropriate, optimized, and sustainable wind-diesel energy systems and develop the related human capacity. Workforce Development: Provide the State of Alaska and other international organizations with a workforce development program based at a technical university to train engineers and project developers in the implementation of wind and other renewable technologies. Background Most Alaskan villages are dependent on diesel fuel to power electric generators and heat their homes. The price for liquid fuels has increased dramatically in the last five years and future projections do not suggest that this strain on village economies will reduce. While U.S. diesel prices rose consistently with inflation from 1994 to 2004, they have skyrocketed from $1.50 in January of 2004 to $4.65 in June of 20081. Given the expected continued rise in fuel costs, especially in rural Alaska where costs can be twice the national average, the impact of continued reliance on diesel fuel for producing electricity is clear. The cost of energy to village life and economy is approaching the breaking point, and Alaska is now starting to experience the developing world phenomenon of migration from rural to the urban areas, driven by the rising cost of energy. This trend is both threatening to village culture and problematic to urban society since the social cost of supporting rural transplants in urban environments is many times that of supporting them in their rural communities. 1 Bureau of Labor and Statistics, 2009; U.S. Energy Information Administration, 2008 2 Energy resource assessments in Alaska have demonstrated excellent wind resources in over 100 villages that currently rely on diesel generation. An assessment of the wind energy resource map of Alaska and community energy needs indicates that there are at least 116 communities in Alaska that are suitable candidates for economic wind development (Dabo, 20072). Wind, unlike fossil fuels, is a locally available resource, almost free after recouping the initial investment and accounting for O&M, infinitely renewable, requires no transportation or bulk storage, and is clean. The technology for converting wind energy to electricity (and heat) has evolved significantly since the 1970’s when wind first became a commercially available source of electricity. The reliability and cost of wind turbines and their associated balance of systems have improved dramatically during the last 4 decades. This cost reduction, improvement in reliability, and the interest in renewable, homegrown, carbon-free electricity has driven the installation of wind power to exceed 100,000 MW in total capacity worldwide, with projections of double digit annual growth rates for the next decade. With this kind of market and industry growth comes increased competition, capital infusion, and market segmentation. The U.S. is experiencing this market segmentation, as the concept of community wind has emerged, and with it the demand for appropriate technology, ownership structures, and policies. Most Alaskan villages, where power plants are either owned by member coops or municipalities, are a form of community wind and, thus, may well benefit from the technical, financial, and policy products developed in the emerging community wind market segment in the lower 48. The integration of the relatively mature diesel genset technology and the maturing wind turbine technology for remote electricity mini-grids has been an area of research for some 20+ years (Hunter and Elliot, 19943). While large European islands and remote Australian towns have operated multi-10’s of MW wind-diesel systems, only in the last 5 years have wind-diesel systems become a serious option for Alaskan’s rural communities (Baring-Gould, 20034; Baring-Gould, 20075). The drivers for this change were the rising cost of diesel fuel and the improvement in integration control systems. Alaskan Stakeholders in Wind-Diesel Technology Alaska is unique because it has developed a certain level of homegrown wind-diesel expertise and has also taken advantage of existing programs at the National Renewable Energy Laboratory, the Alaska Energy Authority, and the University of Alaska. 2 Dabo, M., Jensen, J., Smith, J.; “Regional Economic Wind Development in Rural Alaska – Part I Technical Potential”; Arctic Energy Summit, Anchorage, Alaska, October 15 -18, 2007. 3 Hunter, R., & Elliot, G. (1994)., “Wind Diesel Systems”, Cambridge University Press, Cambridge, UK.,1994. 4 Baring-Gould, E.I.; Flowers, L., Lundsager, P., Mott, L., Shirazi, M., Zimmermann, J.; World Status of Wind Diesel Applications Proceedings of the 2003 AWEA Conference, Austin TX. June, 2003. 5 Baring-Gould, E.I.; Corbus, D.; “Status of Wind/Diesel Applications in Artic Climates”; ; Arctic Energy Summit, Anchorage, Alaska, October 15-18, 2007. 3 This has resulted in numerous projects as well as a number of organizations actively engaged in the field of wind-diesel hybrid technologies in Alaska. These include: Kotzebue Electric Association (KEA): A driving force in the development of wind energy in the state of Alaska and the owner-operator of the Kotzebue Wind Farm, a 915 kW wind farm comprising of 17 wind turbines including the Entegrity EW15, Northwind 100/19 A, and remanufactured Vestas V-17. KEA has strong expertise in wind turbine maintenance in arctic climates and currently is looking at opportunities to couple storage technologies with their existing generation. Alaska Village Electric Cooperative (AVEC): AVEC owns and operates utilities in 51 Alaskan villages, including three wind-diesel systems with 4 additional systems coming on line in 2008. AVEC has extensive experience in diesel plant design, waste heat utilization, operator training, resource assessment, and wind integration at lower penetration levels. AVEC also has a history of community engagement in its member villages. TDX Power: TDX is the owner-operator of the St. Paul high penetration wind- diesel system and has also installed other wind-diesel projects, primarily in Alaska. TDX has strong open market project development experience utilizing both renewable and non-renewable technologies. STG Construction: STG focuses on major construction projects in rural communities, and has a great deal of rural construction and wind turbine installation experience. Alaska Vocational Technical Center (AVTEC): AVTEC is operated by the Alaska Department of Labor and Workforce Development division and is located in Seward, Alaska. AVTEC already has a power plant operator training and accreditation program, and is beginning to incorporate training opportunities in renewable energy technologies in its program. Delta Wind Site: The home of the first Northwind B turbine, the Delta site is the most recent Alaskan wind turbine installation, and the first large commercial turbine to be connected to the Railbelt grid. Wales: The community of Wales is the location of a joint NREL/AWEA/AVEC project including an experimental high penetration wind-diesel system designed to serve as the basis for an energy self-sufficient and sustainable community. The Alaska Energy Authority (AEA): One of AEA’s primary objectives is providing safe, reliable power to rural communities. AEA’s staff has extensive experience in diesel plant design, waste heat recovery, and diesel plant operator training. In addition, AEA provides technical assistance on the implementation of renewable technologies. Denali Commission (DC): The DC is a federally funded organization that has provided infrastructure support to Alaskan rural communities and has a good understanding of the needs of rural Alaska. In the power sector, they have focused on diesel power plant upgrades and bulk fuel tank replacements. Recently, they have expanded their focus to include renewable energy technologies. The Alaska Center for Energy and Power (ACEP): ACEP is a University of Alaska program centered on applied energy research, including a significant focus 4 on community energy solutions. ACEP is based in Fairbanks and operates a diesel engine testbed and conducts evaluations of energy storage technologies. Both programs will be incorporated into the planned wind-diesel test center. Department of Energy Arctic Energy Office (AEO): The AEO is a DOE- sponsored satellite office located in Fairbanks mandated to address energy related issues in the Arctic. In the past, AEO has focused primarily on fossil energy technologies, but views rural energy as core to its mission and anticipates a greater focus on renewables in the future. Alaska Renewable Energy Fund: A state-based development fund designed to support implementation of renewable and alternative energy projects throughout Alaska. The fund was started in 2008 with initial funding totaling $100M and additional funding anticipated at a rate of $50M per year for the next 4 years. The fund provides a strong market for renewable technology deployment in rural Alaska. The NREL Experience In addition to the expertise located in Alaska, NREL has been involved in wind-diesel technologies for the past 2 decades. Through their Village Power Program, NREL has sponsored activities in more than 20 countries to support the use of renewable technologies to meet the energy needs of rural communities through resource assessment, comparative analysis and modeling, performance monitoring and analysis, pilot project development, internet-based project data, and communications training. NREL has also led the way in h ybrid system modeling, including development and testing to allow different conventional or non-conventional energy generation devices to be combined to supply consistent, low cost power to rural populations. NREL's Distributed Energy Resources Test Facility has served as a working laboratory for interconnection and systems integration testing. This state-of-the-art facility includes generation, storage, and interconnection technologies as well as electric power system equipment capable of simulating a real-world electric system. Overview: The Alaska Wind-Diesel Applications Center (WiDAC) Despite the strides that have been made, there exists a number of remaining challenges to broader implementation of wind-diesel hybrid technologies. These include gaps in the technology, lack of equipment availability, unmet human capacity, and technology acceptance. These gaps are outlined in greater detail in the last two pages of this paper. WiDAC will seek to address these challenges through development of an integrated program including the follow components: research, testing and monitoring; analysis; education; training; and technical assistance. WiDAC - Research, Testing, and Monitoring: WiDAC would develop a wind-diesel hybrid center, somewhat fashioned after the one developed at NREL’s National Wind Technology Center (NWTC) located just south of Boulder, Colorado. This facility would be located at the University of Alaska Fairbanks and would focus on applied energy research to address technology gaps in wind-diesel applications while allowing the development of Alaska-specific solutions to rural energy issues. The facility would attract international experts and would act as an incubator for technology development 5 spinoff opportunities. Additionally, utilities could use the facility to test new control software or components without the risk which comes with using new technologies in remote areas, and to train system operators on their customized wind-diesel system. WiDAC – Analysis: WiDAC would develop and exercise the capacity to comparatively analyze the performance and economics of various system configurations, utilizing and improving upon the Hybrid2 and HOMER software packages. WiDAC would also assist the Alaska Energy Authority and other state organizations with the assessment of projects or the technical assessment of development proposals. The Alaska Center for Energy and Power has already conducted basic analysis of different energy options, including a study of transportation fuel options from excess wind power on St. Paul Island, and WiDAC would build on this expertise. WiDAC - Education: WiDAC will provide engineering students with an education in wind technology and wind-diesel systems, based on both actual and experimental results. The goal will be to equip students with the capacity to evaluate various performance parameters as well as the economics of a wide range of configurations, dispatch strategies, and penetration levels in comparison to conventional diesel gensets, under the various conditions of wind regimes, load profiles, and fuel prices. Students would be trained in the use of existing wind-hybrid modeling tools (e.g., Hybrid 2, HOMER) on real, proposed and theoretical systems. In addition, there will be research opportunities such as developing and/or improving modeling tools to better respond to changing system and user demands, and investigating the concept of expanded wind-diesel systems to utilize excess wind energy to meet demands in the heating and transportation sector. Through WiDAC, leading experts from around the world will be invited to the University of Alaska as visiting researchers, and the program will draw graduate students from around the world. WiDAC would also take a leadership role in and host the International Wind-diesel Conference. WiDAC would engage existing faculty from electrical, mechanical and civil engineering departments and link to existing courses including construction, controls, arctic engineering, diesel systems, and project management. Additional new courses in (1) wind energy technology and application (2) wind in remote communities would also be developed. WiDAC would coordinate its curriculum with other campuses and existing programs throughout the University of Alaska system. WiDAC - Training: WiDAC would provide a wind-diesel system operator training course, developed in collaboration with equipment suppliers and utility owners. The course would include both classroom and field work, with the goal of developing a certification program for operators. The training program would make use of the central facility at UAF, but also provide training opportunities at hub city systems (e/g/, Kotzebue, Nome) and possibly at satellite campuses. The goal would be to develop an UA system-wide strategy to build upon existing program modules and implement a range of programs on different certification levels, ranging from vocational to academic/engineering focus. Initial activities would include assessment of current curricula and job training needs and then in collaboration with regional schools, develop 6 a state wind training program. This collaboration could eventually be expanded to include national and international universities, experts, system developers and operators in order to share experience and human capital. WiDAC - Technical assistance: Once established, WiDAC can provide a broad range of technical assistance to the various wind-diesel stakeholders. Because of the objectivity and broad experience in both fossil and renewable energy systems, including their economics and performance, WiDAC can help village leaders, utilities, policy makers, state agencies, technology developers, and others in their evaluation of options and risks. WiDAC could also house the Wind in the Schools program and the Alaskan anemometer loan program, which are related activities that would bring additional resource assessment capacity and database development opportunities to WiDAC, and would facilitate coordination with other regional campuses. Facilities Needs Wind-Diesel Control and System Test Center: WiDAC would be built around a wind- diesel control and system test center modeled after the NWTC Hybrid Power Test Bed and located in conjunction with the Alaska Center for Energy and Power on the University of Alaska Fairbanks campus. The center would serve as the hub of WiDAC and include both operational and simulation equipment to allow assessment of new technology options and control systems. Wind turbine test site: A test facility that would allow the testing of wind turbines and controls for Alaskan environments. The test site should be located within driving distance from UAF with telemetry to the wind-diesel control and system test center. Remote monitoring of operational wind-diesel systems: In collaboration with rural communities and power suppliers, selected operating wind-diesel or other renewable energy power systems will be instrumented and data will be used to assess of different system configurations and components, providing high quality long term data for analysis and research. Laboratory Community: A community that agrees to host a living wind-diesel test bed would be selected to coordinate with WiDAC. The test bed would allow incorporation of new renewable energy and storage technology as a bridge between the laboratory and commercial implementation, and permit testing of different control strategies and operations paradigms in real life settings. The community should have a good wind resource and be reasonably accessible from Fairbanks. Public Education Center: WiDAC would propose a partnership with one or more renewable energy education centers planned around the state to offers the general public an overview of wind-diesel systems. Program Oversight In order to ensure WiDAC continues to meet the needs of stakeholders within the wind- diesel community, an advisory board will be established. Members of the advisory board 7 will include representation from: AEA, Denali Commission, AVEC, KEA, TDX Power, NREL, the international wind-diesel community, the UAF chancellor’s office, and other key stakeholder groups. The advisory board will help define the future priorities for WiDAC, promote the program, and aid in funding. Summary of Needs To support the implementation of the Wind-Diesel Applications Center at the University of Alaska Fairbanks, the following program requirements would be required within the first 5 years of operation. Staffing: 1-2 research faculty 1 engineering technician 1 energy economist (1/2 time) Regional training coordinator (1/2 to 3/4 time) 1-2 1/4 time visiting faculty positions 2 funded PhD students (ME and EE) 3 funded MS students (ME or CE and EE) Summer interns and upper level undergraduate students Funding (total request $1.6M/year): $100k for wind and wind-diesel curricula development $50k/yr funding for Wind-Diesel Conference and other outreach activities* $1M/yr research and data analysis budget (includes personnel and equipment budget) $200k for 3 years in initial software development funding, likely to be reduced after the first few years $200k initial costs for anemometer loan program followed by $50k/yr for anemometer loan program support (including travel)* $50k/yr travel funds to support project assistance, assessment and general support; regional training and curricula development, and general program support in Anchorage, Juneau and rural communities.* It should be noted that some of these budgeted items take over responsibilities currently carried out and funded through the Alaska Energy Authority. These items identified with an asterisk. Facilities Budget: Wind-diesel control and system test center: $3 million over 2 years Wind turbine test site: $1M for initial development of site Remote monitoring of operational wind-diesel systems: $250k per site for monitoring equipment and installation Laboratory Community: $8 million (depending on size) for new diesel power plant, special switch gear and multiuse foundation pads, wind turbines and communications. To be funded in future years. 8 Challenges to be Addressed Through WiDAC Technology Gaps: Integration controls, plug and play controller logic Control and dispatch strategies for medium and high penetration systems Smart grid control and dispatching Rime ice location indicator tool for wind site selection Storage options Development of decentralized load controllers (thermal and transport) Independent testing capabilities for new technology options Development and testing of remote health and performance monitoring equipment Development of expanded remote operational control of remote power systems De- and anti-icing technologies for wind systems Electric based transport solutions Electric based thermal solutions Foundation and tower designs Equipment Availability: Tested modular wind-diesel power system controllers Mid-sized turbines for arctic environments Low cost energy storage o Flywheels o Standard batteries (Lead Acid, NiCad) o Capacitor banks (have not been tested – low cost and high cycle life) o Advanced batteries (Assessment of new battery technologies) o Compressed air Low cost seasonal storage o Hydrogen, ammonia and other fuels o Compressed air o Flow batteries Low cost ice detectors Low cost basic remote power system monitoring equipment and packages Developing Alaskan human capacity: system design engineers utility generation system engineers research scientists test engineers system operators consulting engineers technical support experts Technology Acceptance: Collection, assessment and publication of performance data from power systems 9 Gathering of wind resource and load data from communities (anemometer loan program) Standardized methodology to assess economic benefits of wind-diesel systems WiDAC will serve as an independent Alaska-based organization to provide information and technical support in the assessment and development of wind- diesel projects that is free from business or governmental influence. WTG002.01-A01-011 Rev1 NW100 General Description.doc Northwind® 100 General Description WTG002.01-A01-011 Rev 1 8 October 2008 Northern Power Systems 29 Pitman Road Barre,VT 05641 USA Tel: 802.461.2955 Fax: 802.496.2998 www.northernpower.com WTG002.01-A01-011 Rev1 NW100 General Description.doc 1 Specifications in the document are subject to change with out notice. Purpose The purpose of this document is to provide a general description for the Northwind® 100 wind turbine that is intended for public use. Turbine Architecture The Northwind 100 wind turbine incorporates technology that is often only found on much larger turbines. The Northwind 100 wind turbine has the following components: • Three bladed, stall controlled, upwind rotor with rigid hub • Direct drive permanent magnet synchronous generator • IGBT-based full power converter allowing variable speed generator operation and compliance with the UL 1741 utility interconnection standard • Redundant rotor braking: dual mechanical brakes plus an electrodynamic brake • System controller and power converter located in nacelle • Active yaw drive system with friction damping • Steel tube monopole tower An exploded view of the Northwind 100 wind turbine is shown in Figure 1. Figure 1 Key Northwind 100 Turbine Components Blade Rotor Hub Generator Power Converter & System Controller Nacelle Cover Mainframe Tower Mechanical Brake (behind generator) Optional Obstruction Light Yaw Assembly (below Mainframe) Service Platform Meteorological Instruments (“Met Mast”) WTG002.01-A01-011 Rev1 NW100 General Description.doc 2 Specifications in the document are subject to change with out notice. Major System Functions The ROTOR converts the aerodynamic energy in the wind to mechanical shaft torque. It also provides a lightning path from the blade tips to the main shaft. The GENERATOR converts the mechanical shaft power to electrical power at variable frequency, and provides the reaction torque to the rotor. The POWER CONVERTER converts the variable frequency generator output to constant frequency for feeding into the grid. The SYSTEM CONTROLLER manages the normal operation of the wind turbine. The system controller is integrated into the power converter cabinet. The SAFETY CHAIN is activated when the machine exceeds its normal operating limits, and takes the machine to a safe state. The NACELLE performs several functions: • The mainframe subsystem carries the mechanical rotor loads to the yaw system • The yaw subsystem orients the machine into the wind and transfers mechanical loads to the tower. • The nacelle cover protects the interior components (brake system, converter, yaw drive, etc) • The met mast collects wind data for turbine control and monitoring The TOWER holds the machine up high in the windstream and brings the mechanical loads to the foundation The TRANSFORMER converts the converter output voltage to grid voltage. The FOUNDATION transmits the tower base loads to the earth, and provides a path (conduit) for the electrical service, and contains features to accomplish system grounding. Blades and rotor The fixed-pitch fiberglass reinforced polyester (FRP) blades capture the wind and turn the rotor shaft. The blade has an advanced root design, which is suitable for low temperature operation, and integral lightning protection is provided. The rotor hub is a Y-shaped design with an integral shaft mounting flange. Power limiting and control is achieved using an advanced stall control technology. In a stall controlled turbine, the captured power is a complex function of the blade design, wind speed and rotor speed. The Northwind 100 regulates the generator speed through use of the power converter which results in the control of the rotor speed and thus the output power to the grid. Generator The generator is an advanced permanent magnet generator with passive air-cooling via the exposed generator housing. The generator housing contains the bearing mounts for the generator mainshaft, which serves as the rotor mainshaft in this integrated design configuration. The generator includes an automatic bearing greasing system which allows for extended service intervals. When the greasing system requires service, it is readily performed from within the nacelle. Main Shaft Brake Assembly The Northwind 100 uses a main shaft braking system consisting of two caliper brakes which can be motor applied for normal braking and are fail safe in emergency conditions. The braking system is readily serviced from within the nacelle. In addition WTG002.01-A01-011 Rev1 NW100 General Description.doc 3 Specifications in the document are subject to change with out notice. to the two mechanical brakes, the turbine includes an electrodynamic brake that is incorporated into the power converter. The turbine may be stopped under any circumstance by using any two of the three brakes. Mainframe and Nacelle The Northwind 100 mainframe is the main structural element of the tower top assembly, transmitting the rotor loads from the main shaft and bearings to the tower. The mainframe includes external service platforms for access to the rotor hub and blades. The nacelle housing is fabricated from fiberglass reinforced polyester (FRP). The nacelle is sized so that it can be shipped virtually assembled in a standard ISO container. The design includes an integral skylight window and a removable side hatch for access to the external service platforms. Mounted off of the side of the nacelle is the “met mast” which contains the meteorological instruments that measure the wind speed and yaw error. An optional obstruction light (FAA Light) is also mounted on the nacelle’s top. Yaw Assembly The Northwind 100 uses an active yaw drive system to orient the turbine into the wind. A gear motor mounted to the turbine bedplate drives against the integral bull gear and slew ring which is attached to the tower in order to yaw the turbine. A yaw error sensor mounted on the met mast provides the input to the yaw control system. A proprietary friction system provides constant yaw friction to minimize low amplitude vibration of the nacelle. Power Converter and Controls Assembly The power converter assembly is located in the nacelle and includes the Northwind 100 system controller, the power converter and the electrodynamic brake system. The system controller autonomously controls the turbine and has an Ethernet-based Modbus-TCP interface for remote monitoring and supervisory control. The power converter interfaces the generator with the grid and consists of an active rectifier and inverter. The electrodynamic brake system uses the generator, power converter and an air-cooled, resistive load bank. Control switches are present both on the power converter in the nacelle and on the electrical junction box at the tower base. These controls allow the turbine to be placed in a safe service state and include an emergency stop. The nacelle control switches also include manual yaw and brake controls. The Northwind 100 power converter uses an advanced IGBT-based technology to convert the varying output of the generator to the constant frequency and voltage required by the grid. This conversion is performed in two steps. The first conversion changes the generator’s varying output to a dc voltage. The second conversion produces the constant frequency and amplitude for delivery to the grid. The turbine’s grid output meets the IEEE 519 harmonic standard so no additional filtering is required. Because of this double conversion process, adding a Northwind 100 turbine to the grid is different than adding a traditional wind turbine in this power class because the power converter isolates the generator from the grid. Traditionally, wind turbines are directly- connected induction generators which require utility coordination due to their reactive current needs and large fault current characteristics. To the grid, the Northwind 100 appears as an inverter, with no reactive current requirements and a very small fault current characteristic. The Northwind 100 is designed to meet the UL 1741 grid interconnection standard and presently is in the process of certification to this standard. WTG002.01-A01-011 Rev1 NW100 General Description.doc 4 Specifications in the document are subject to change with out notice. The UL1741 certification is expected in the first quarter of 2009. Therefore, the Northwind 100 does not present the traditional interconnection issues of other wind turbines. Because of its power converter interface, the Northwind 100 can be configured to supply reactive power to the grid, even at times when it is not generating real power. Tower The standard Northwind 100 tower is a multi-section, tapered tubular steel tower. Access is gained through a door located at the tower base. An electrical junction box that contains the power and control connection points; a fused, lockable power disconnect and a basic control interface to secure the turbine for service is installed in the tower base. Access to the nacelle is provided by an internal ladder equipped with a fall restraint system. Foundation The foundation for the Northwind 100 typically falls into two broad categories: concrete pad or pile type. The foundation design is site specific because of soil conditions and other factors. The customer must provide a foundation design based on loads and key dimensions provided by Northern. Transformer One transformer per Northwind 100 is required for connecting the turbine with the utility system. The transformer is not supplied or installed by Northern. This transformer is used to match the NW100 output voltage to the local utility voltage and to manage the safety and power quality of the electrical interface. 20.9 ROTOR DIAMETER 36.7 HUB TO FOUNDATION 100kW WIND TURBINEHUB HEIGHT: 37mROTOR DIAMETER: 21m SCALE 1:50WHEN PRINTED ON ISO A0 ALL DIMENSIONS IN METERS COPYRIGHT 2008 DISTRIBUTED ENERGY SYSTEMS This drawing and specifications contained hereon is proprietary to Distributed Energy Systems and is loaned to facilitate bidding, construction, fabrication and/or execution of requirements stated and is to be surrendered upon request or completion of services.It may not be reproduced or transfered to other documents or discussed to otherswithout written permission by Distributed Energy Systems. 29 Pitman RoadBarre, VT 05641 USAwww.distributed-energy.com Typical Northwind 100 Factory Training Schedule Monday Tuesday Wednesday Thursday Friday 8:30 Breakfast / Introductions Breakfast Breakfast Breakfast Breakfast 9:00 Safety Briefing and Plant Tour Turbine Installation (Classroom and Shop Floor) O & M : Health & Safety Scheduled O & M Procedures Summary & Q&A Blitz 9:30 Wind Power Overview Foundation, Tower & Cranes First Aid & Fire Prevention Bolts/Fasteners & Mech. Assy. Docs Review 10:00 History of NPS & the NW100 Electrical (Power & Controls) Lock/Tag-Out,Brake, Safety chain Lubrication Points Q&A and Photo Review 10:30 Wind 101 - Parts of the NW100 Rotor & Hub Assembly Man. SHTDN, Rotor lock, Yaw functions Wear Items/Consumables 11:00 PM Generator & Power Converter Nacelle Lift & Set Weather, max Wind, Thunder, etc. Rotor Inspection/Removal Classroom Test 11:30 Yaw Drive/Brake & Rotor Brakes MET Sensors & Instrumentation Climbing, Fall Arrest, Crew Tasks Controller, Grounding, etc Passout Training Certs. & Dismiss 12:00 – 1:00 Lunch Lunch Lunch Lunch Lunch 1:00 O&M Manual Intro (Sections 1) Production Floor Tour Field Trip to Local Demo Machine Optional : 1/2 day workshops 1:30 Turbine Safety (Section 2) Smartview SCADA Demo Safety Meeting @ Site UnScheduled O & M Discussion DSP Control 101 2:00 Controller Access & Software Climb Tower/Turbine IGBT's are our Friends 2:30 Turbine Overview (Sections 3 - 4.4) Control Functions & Capabilites Hands on Inspection(s) Spares: Min. Recommended., 2 year, Fleet The Digital Gearbox 3:00 Flags, Trends & Events Bolt Tourques & Wear Items Airfoils & The Rotor 101 3:30 Turbine Control (Section 4.5 - 5) Data Archiving, etc Brake Systems & Tower Wiring Options: Cold Weather, SEL Relay,50Hz, Revenue Meter, FAA Lights, Auto-Descent Site Assesments 4:00 Q&A Session Q&A Session Q&A @ Site Q&A Session 4:30 Daily Wrap-up Daily Wrap-up Return to Shop Daily Wrap-up Q&A Session AVTEC Renewable Energy Fund Grant Application AVTEC Renewable Energy Fund Grant Application 11/10/2008 Project Correspondence & Letters of Support PO. BOX 1 ? 1149 Department of Labor and Workforce Development JUNEAL~ ALASKA 9981 1-1 149 PHONE: OFFICE OF THE COMM/SSIONER (907) 465-2700 FAX: (907) 465-2784 November 10,2008 Dear Review Committee: This letter is written in support of an AIaska VocationaI Technical Center (AVTEC) wind-diesel training program. Currently, no formal wind -diesel training exists within the state of Alaska. If wind-diesel training is to be established, a wind energy installation will be needed to support hands on training. The state and other wincl-diesel stakeholders, such as the Denali Commission, arc incurring costs that could be reduced through the creation of an Alaska based wind-diesel training program. AVTEC is one of the most capable entities to support a wind-diesel program due to the school's mission, facilities, experience in leading industrial electricitv training, and existing reIationships with the state's utilities and the Alaska Energy Authority. The need for wind-diesel training will continue to grow as the state and private industry contii~ue to invest large amounts of capital into renewable energy projects. Alaska has an opportunity to become a world leader in the wind-diesel training through the co~npletion of this project and implementation of this training. We support the goal that AVTEC has for this project. InstaIlation of a wind turbine along with a comprehensive training program at AVTEC will resuI t in a more prepared and skilled workforce capable of addressing Alaska's alternative energy opportunities. Sincerely, Clark Bishop Commissioner