HomeMy WebLinkAboutVillage of Napaimute Battery Storages With Solar Palans Project App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 18 9/2/2008
Application Forms and Instructions
The following forms and instructions are provided for preparing your application for a
Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.pdf Instructions for completing the above grant budget form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide a plan
and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
Renewable Energy Fund
Grant Application
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Native Village of Napaimute
Type of Entity:
Government Tribal entity, federally recognized
Mailing Address
P.O. Box 1301, Bethel, Alaska 99559-1301
Physical Address
110 Torgensen Square, Bethel
Telephone
543-2887
Fax
543-2892
Email
Napaimute@starband.net
1.1 APPLICANT POINT OF CONTACT
Name
Mark Leary
Title
Director, Development & Operations
Mailing Address
P.O. Box 1301, Bethel, Alaska 99559-1301
Telephone
543-2887
Fax
543-2892
Email
Napaimute@starband.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
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.)
Renewable Energy Fund
Grant Application
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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 Native Village of Napaimute proposes to implement its renewable energy plan by utilizing a
battery storage system coupled with solar panels. This system will allow the battery bank to
store electricity, allowing power to be continuously used at low usage without running a
generator. This captured and stored energy will decrease the amount of gas/diesel fueling the
generator because the generator will not have to be powered up as often. Under this system, no
feasibility study or permitting is required.
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 Native Village of Napaimute, governed by its Traditional Council, is deliberately focused on
the goal of its elders: to resettle the village. Using a combination of local resources, local labor,
unwavering vision and hard work coupled with a think-outside-the-box approach the tribe has
successfully leveraged in-kind, State or Federal funding to create its Community Plan; construct
a village offices and a community building using local material; log and mill local wood to
construct rental cabins and kits for sale; site, clear, survey and construct a pioneer airstrip; and to
build a landfill. Since Napaimute received its land base through unusual means, it was through
Administration for Native American funding that survey of its community lands was completed.
This enabled the tribe to open a Home Site Program; people are resettling, the village growing.
Napaimute Enterprises sells fuel; operates a small package store; rents cabins and the community
center; operates a sawmill; has a coin-op washer and dryer; and offer showers. Commerce and
our economic base are slowly growing, in accordance to our Community Plan. The cost of
providing linked energy to rural Alaskan villages is staggering; individual energy systems must
smartly utilize energy by reducing use of petroleum products. Our village, located on the
Kuskokwim River, about 30 miles from Aniak works to be a model village where refuse is
contained, development is planned and residents demonstrate their care and respect for the
environment by minimizing their dependence on diesel; this is also a demonstration of the harsh
economic environment. Our proposal will serve current and future members of the community
(25 or so residential homes) along with a couple of families that live across the river and the
countless river commuters who come to wash clothes and take a shower. NVN’s Director
Development & Operations Mark Leary and Environmental Coordinator Mitchell Dammeyer
will be directly involved in the management of this project. Both men are highly respected in the
Kuskokwim and Mr. Leary has overseen most of Napaimute’s development, literally from the
brush up.
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.
Funding requested will cover the purchase of equipment to construct a small system that will
incorporate solar capture of energy into a basic system involving a batteries, a charger
(generator), an inverter (Surrette batteries, all needed cables and peripherals). This basic system
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 18 9/3/2008
components with installation by an Anchorage-based firm Without the solar component the best
we could manage would be to have round the clock power
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.
On a normal day (when we have employees staying in the community building which is just
about all the time) the generator runs from 9am to midnight (1 AM at the latest). So 15 – 16
hours. We use 6-7 gallons every day and a half to 2 days. We have fuel logs for the generator
going back a few years. At $6 a gallon that is a minimum of $18 - $20 / day to provide electricity
to our buildings. The 2006 Honda 3000 Inverter generator powers lights, (3) computers, (2)
freezers, refrigerator, water pump, washer/dryer, satellite modem, etc.
We change oil on it once a month and have the maintenance records going back several years.
We service the air filter & fuel system on a quarterly basis.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$ 123,494.29
2.5.2 Grant Funds Requested in this application. $ 109,471.29
2.5.3 Other Funds to be provided (Project match) $ 14,023.00
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 123,494.29
2.5.5 Estimated Benefit (Savings) $
2.5.6 Public Benefit (If you can calculate the benefit in terms of
dollars please provide that number here and explain how
you calculated that number in your application.)
$
Renewable Energy Fund
Grant Application
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include a resume and references
for the manager(s). If the applicant does not have a project manager indicate how you intend to
solicit project management Support. If the applicant expects project management assistance
from AEA or another government entity, state that in this section.
The Traditional Council of the Native Village of Napaimute takes ultimate responsibility for the
completion of this project. Our long-term Director, Development & Operations Mark Leary will
manage this project and work closely with the installer. Mr. Leary is widely known in the
Middle Kuskokwim and beyond and he is respected for his dedication to Napaimute, for his
volunteer activities, and his willingness to mentor workers whom accomplish much under his
guidance.
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.)
We offer a six-month project completion schedule:
Month 1: contract executed with AEA; contract and final negotiations with contractor and
installer; payment schedule agreed upon (anticipate ½ down, ¼ at FOB Anchorage and final
payment at delivery and installation). Requisition of fuel tank. Identify and hire two locals to
construct the building
Month 2: Begin construction of building in Napaimute to house the proposed system, known as
the “power building”.
Month 3: Order and receive cable and wire that will be buried from the “power building” to the
solar tracker and main distribution panel located near the Tribal Council building and driving a
pole for the Solar Tracker.
Month 4: Prepare the power building for the inverters, batteries and generator to be installed.
Schedule lading in Anchorage to Bethel and from Bethel to Napaimute.
Month 5 – 6: receive material container, arrange travel for installer, and welcome back installer
to Napaimute for installation.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
We anticipate this project taking less than six months to put into operation. To keep
transportation, construction and installation costs as low as possible, the system we propose
would be nearly fully constructed in Anchorage, loaded into a shipping container and barged
from the Port of Anchorage to Bethel (preferably on the first barge of the season) then up the
Kuskokwim River on one of two local barge lines for delivery to Napaimute. At month one:
Sign contract with AEA; Council meets; enter into a contractual agreement with Susitna Energy
to begin assembling our system in conjunction with installer and negotiate a final price and
delivery timeframe. Make down payment for equipment. Requisition fuel tank. Month two to
three: in-kind construction of a stand-alone building to house the battery bank using locally
harvested and milled wood. Schedule barge delivery. Month four to six: receipt of container;
make travel arrangements for installer to complete installation. Our Director, Development &
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Operations and the PM, will take photos, and be responsible for making narrative and financial
reports to the Council prior to submittal to AEA.
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.
In August 2007, Napaimute under a time and materials basis engaged Susitna Energy to travel to
Napaimute to assess our current energy needs and to develop an alternative energy plan for the
village. Susitna Energy provided updated cost data that is being used for this proposal. It is the
practice of the Native Village of Napaimute to put contracts out for bid through its website
(www.napaimute.org) and via mail; an RFP would be sent to Susitna as well as minority-owned
firms. Selection criteria would include points awarded based on an established relationship; no
commitments have been provided to Susitna. Mark Leary, Napaimute’s Director Development
& Operations will serve as PM with able assistance from Napaimute’s Environmental
Coordinator Mitchell Dammeyer.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The success of Napaimute in obtaining funding from regional, state or federal agencies is due to
a few key components: we do what we say we are going to do; we manage resources effectively
and submit financial and narrative reports on a timely basis; and, we have long-term, committed
employees along with an involved and forward-thinking traditional council. We will submit
narrative and financial reports as requested and welcome on-site visits. As a Council, we meet
telephonically to conduct business of the tribe on a monthly basis and conduct face-to-face
meetings twice a year. Our agenda includes reports from our Director, Development &
Operations and other program areas along with financial reporting. Our financial records are
contracted to Tabularis Bookkeeping, whose owner was formerly employed by a large firm; and
all checks require two signatures; we maintain appropriate checks and balances.
3.6 Project Risk
Discuss potential problems and how you would address them.
With fuel costs impacting everyone, especially residents of rural Alaska, we fear further
escalation of our shipping and fuel costs. We would look to our Napaimute Enterprise profits
from sales of fuel, store items, and our sale of wood as a means to pay for this. Once funding
award is received we would lock-in price quotes and negotiate where possible to obtain the best
deal for the village.
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Grant Application
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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.
Napaimute is competing in the Alaska Federation of Natives sponsored Alaska Marketplace
competition for its wood gathering and sales proposal. With the skyrocketing cost of energy in
Rural Alaska, the Native Village of Napaimute’s leadership feels it is the opportune time to
develop a firewood business to create further economic opportunity (additional employment) in
our community and to help provide affordable energy alternatives to Lower River Residents
through the use of new technology. This will be accomplished through the use of project-
dedicated employees, specialized firewood production & packaging equipment, and web-based
advertising.
Various sized firewood packages will be transported each fall on barges (back haul – by far the
cheapest method) for staging in Bethel, the hub for the Kuskokwim Delta. Firewood packages
will range in size from mailable bundles (seen outside most convenience stores in Urban Alaska)
to full cords. Bulk firewood packages will also be offered to Lower River corporation stores.
From there the product will be offered for sale throughout the winter from our Bethel office. This
location will allow for easy access to the huge Lower River market represented by Bethel and the
many outlying Delta villages. Individuals will be able to efficiently transport firewood packages
by truck, snow machine, boat, or even air.
Historically, a great demand for firewood has always existed in the treeless Lower Kuskokwim.
Driftwood coming down from the Middle and Upper Kuskokwim and long trips up the River by
Lower River residents has been the traditional means of meeting some of this demand. Now with
fuel prices at critical levels in Rural Alaska, the demand for wood is at an all-time high. We also
intend to further explore biomass alternative energy use in the village. Our thrust is for this wood
business is economic; a means to get a few people working near their homes and earning decent
wages, doing meaningful work while supplying “energy” to Lower Kuskokwim Delta villages by
way of wood. We also will work toward harnessing available wind energy. This proposal would
be an introduction to alternative energy use for the tribe, a tribe committed to accessing emerging
technology as a means to reduce fossil fuel use and lessen our carbon footprint.
Addressing the pros and cons of our proposal, we understand the hard economics and pressure of
limited resources have on tribes such as ours, yet we continue to move forward deliberately. The
cons are that we are a small emerging community who cares deeply about our culture, subsistence
lifestyle, and the often time harsh aspects or trade-offs of economic development and job
creation. There is a cost to incorporate alternative energy, yet we firmly believe we can make it
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Grant Application
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work and prove to be an admirable demonstration community willing to undertake. Under the
pros, we are a stable, fiscally responsible organization that humbly continues to move forward on
the path of economic self-sufficiency while we resettle and rejuvenate our community founded on
the wisdom and dreams of our late First Traditional Chief, Agnes E. Charles.
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.
Napaimute currently uses a 2006 Honda 3000 inverter generator for all its operations: providing power to
the office building, community center, powering three computers, the washer and dryer, water pump, fuel
pump, two freezers, and satellite system, to name a few. It is a basic system that has been well maintained
with maintenance logs being kept by our Director, Development & Operations (formerly Tribal
Administrator). With the generator in operation for 15-16 hours a day, it is fairly efficient – it’s all we
know. The generator uses 6-7 gallons of fuel every day and a half to two days, so with fuel prices at
$6/gallon, it costs $18 to $20 a day to operate. In the city, you probably don’t even know the intricacies of
a basic configuration on your system because you flip a switch and have lights; few city people have to
worry about changing out propane tanks or calling to have fuel delivered. In the case of rural villages like
Napaimute, fuel order and delivery occur maybe twice a year. Buying fuel in bulk is very different on the
pocketbook than it is buying bulk from a big box store. The configuration of our existing system is very
basic but thoroughly reflective of villages in Western Alaska. Our concern about the environment and
better utilizing available technological advances in alternative energy, drives our proposal.
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.
Napaimute’s Environmental Coordinator, whose interest in alternative technology led him to build his own
wind generator in Kalskag. This project provides Mitchell Dammeyer with a personal perspective on the
construction and maintenance needs of wind energy on an intimate level. Napaimute relies on its
Environmental Coordinator to keep the Council updated on all things environmental and as we move
toward greater and greater development, his personal knowledge of alternative wind energy will be
reported to the Council. The Council and its membership have identified being a sub-regional leader on
gaining open pit mining knowledge. The Council has traveled to Fort Knox Mine outside of Fairbanks to
gain first hand perspective on a similar, though smaller, gold mining operation. Our leadership was a
guest of Calista Corporation when it traveled to a large mining operation in Montana. Napaimute’s
Council authored a resolution in support of large-scale mining development so long as it was done in a
culturally and environmentally responsible manner. We understand that mining is a dirty business, but we
believe it can be done with respect to Native people’s reliance on subsistence gathering activities while
providing much needed employment in our economically distressed villages.
Napaimute Enterprises operates a fuel sales business, small package store and offers for lease its
community building and rental cabins that were constructed using locally harvested and milled wood done
by local hires. The community center houses a coin-operated washer and dryer and the pay-for-use
shower; a small library with Internet connectivity is also housed in the community building. This project
will provide energy to operate these businesses, except the rental cabins that are situated at various
locations in the community. (All have river frontage!)
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4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Currently, the village generator (2006 Honda 3000 inverter) runs 15-16 hours a day, roughly 9am to
midnight using 6-7 gallon every day and a half. For a cost of $18-$20 per day at fuel cost of $6/gallon to
operate our lights, three computers, two freezers, water pump, coin-op washer and dryer, satellite modem
and small tools. Napaimute maintains a service record with dates of air filter and fuel system
maintenance. Eventually, when there are more year-round residents, we expect to grow our renewable
energy system and be a clean energy center. We will further explore wind energy that can be incorporated
into this system that we propose. Preliminarily, we believe that wind can be captured, however the
horizontal-axis wind blade machine would be positioned on the hills above the village and be able to tie
into the battery pack described in this proposal.
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Grant Application
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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
Napaimute proposes to implement a solar based renewable energy project that incorporates 12
Evergreen ES-190 190 watt solar panels with a Wattsun dual axis tracker with a 15 amp panel
breaker coupled with a bank of Surrette 6-CS-21PS batteries in ½ totes for ease of transport and
housing and a 9KW generator. This system would be installed in a small insulated stand-alone
building that Napaimute would construct as in-kind contribution; a dedicated 500-gal. fuel tank
for the generator would be needed. The typical lifespan of the batteries is 10-15 years; inverters
will last 15-20 years and the generator will last about 10k hours; the solar panels are under for 25-
years for their power output.
The system will only displace as much electricity as the solar panels will produce. The current
system used in the village does not consume energy at night because the generator is off; this
project system would run 24 / 7, increasing consumption significantly.
To get an idea of what it might displace, the 9KW generator consumes .93 gal/hr @ full load
(9kw) and .51 gal/hr @ half load (4.5kw); batteries hold 23 KWh of electricity with 5 hours of
run time per charge cycle. Mathematically, 4 hrs x .93 gal + 1 hr x .51 gal = 4.23 gal x $6 a
gallon fuel = $25.40 a day for generator. Without solar using less than 23 KWh a day of
electricity, less than a constant 1000w load. $25.40 \ 23 kwh = $1.10 a KWh for that power
system. 14 x 190 watt panels = 2.66 KW; 1.5 sun hrs in Dec x 2.66 KW = 3.99 DWH x $1.10 =
$13.53 dollars saved per day in June. The village is inhabited approximately 10.5 months per
year; during periods of non-use the batteries would be fully charged and the system turned off.
Napaimute leadership annually discusses its goals for the coming years and one objective is to
decrease the growing dependence on fossil fuel; establishing and using alternative energy is one
of cost. Cost is our major barrier. Over the past eight years Napaimute has managed and smartly
leveraged personnel resources, applied for and received funding from the Bureau of Indian
Affairs under Small Tribes funding and Indian Reservation Roads and the federal government
through the EPA IGAP program and Administration of Native Americans to obtain a land base
(long on diplomacy, patience and razor focus on the part of the Council and its administrator) and
build infrastructure, including a pioneer airstrip completed in 2007 and increase environmental
capacity. We do not let cost be an obstacle; when leadership met with both the State DOT and
FAA we were told there was limited opportunity for us to apply for, let alone receive any funding
for a airstrip, planning money. With our proximity to Crooked Creek where a large-scale open pit
mine might proceed to feasibility, leadership was forward thinking, planning for future growth.
We forged along, eventually constructing a 75’ x 2600’ at a cost of $257,000. The DOT and
FAA said if they constructed a similar strip it would budgeted at $6 million! Our unique
approach to obtaining a land base is now viewed as a template for other villages; now we seek to
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have our renewable energy plan become a model for other similarly situated communities.
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.
The Native Village of Napaimute is the landowner and since there will be no surface estate
disturbance, the subsurface landowner (Calista Corporation) does not need formal consultation,
but we would continue to dialog with them. Napaimute leadership and its Director, Development
& Operations maintain regular communication with its village and regional corporate offices; the
2008 Annual Meeting of Kuskokwim Corporation shareholders was convened in Napaimute!
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
This project involves the requisition, purchase and installation of a storage power system
involving inverters, batteries and generator connected to solar panels with tracking. This system
does not require permitting.
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
Napaimute has no environmental or land issues that will affect this project. In 2007, Napaimute obtained
its land base through direct transfer of 650-acres from its village corporation, The Kuskokwim Corporation
in conjunction with a minimal 14(c)(3) conveyance with the State of Alaska. Under the Environmental
Protection Agency Indian General Assistance Program Napaimute employs an Environmental Coordinator
who was among the first to initiate a water quality assessments in the Middle Kuskokwim. With the
increasing likelihood of a large-scale open pit mine in nearby Crooked Creek becoming operational,
Napaimute Council felt strongly that baseline environmental assessments were needed. The tribe
welcomed Steven Street, AVCP Archeologist, to the village several years ago; no new significant sites
were found. Two houses with historical significance in the old village will not be affected with the
completion of this project.
Napaimute installed a remote sensing weather station in 2001 that has been recording solar and wind data
24/7 for the past seven years and completed an Alternative Energy System Plan with the assistance of
Susitna Energy in 2007.
4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues)
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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 equipment cost is estimated at $52,182.29 (includes cables, sensors, filters, tubes, fittings,
etc.); installation cost ranging from $18,000 to $25,000 depending on how much assembly is
completed in Anchorage prior to shipping. If the system were mostly built in Anchorage
(preferable because of the cost savings on actual installation) it would be containerized and
shipped by barge to Bethel before heading up the Kuskokwim 129 miles to Napaimute. Purchase
of a 500-gallon fuel tank is estimated at $3,100; shipping of the equipment weight of
approximately 6,000 pounds is estimated at $4,678 by barge from Anchorage. In-kind
contribution for construction of a “power building” would be $4,500 and the proposal would
include hiring two laborers to construct this power building at a cost of $4,480 (2 workers x
$20/hr. x 8 hrs/day x 14 days). The tribe would provide In-kind room and board of $2,100 (14
days x $75/day x 2 workers). Our Director, D&O as Project Manager at a cost of $2,000/month x
6 months = $12,000 and fringe calculated at 17.5% of $2,100. Three round-trip boat trips to
Aniak for this project is requested to pick-up freight and the installer who would fly into Aniak
from Anchorage is calculated at $130 RT x 3 = $390. In-kind contribution of three round-trips to
Aniak over the course of the project $390 and office space $200/mo x 6 months = $1200 includes
communications. Postage and miscellaneous expenses of $100. In-kind contribution for the two-
hour weekly maintenance of the generator at a cost equivalent of one month salary of our
Director, D&O of $5,833 over one year’s time. A contingency of 5% of the project funding
request is calculated at $5,441.
Requested grant funding: $109,471.29
Napaimute in-kind funding: $14,023.00
Total anticipated project cost: $123,494.29
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
Once installation is completed, the tribe accepts all operations and maintenance costs. Because this new
alternative system supports the village office that houses its Tribal Operations and Environmental
Program, those programs will be debited prorata cost of operating the system that will reflect an eventual
cost savings.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 18 9/3/2008
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
The Native Village of Napaimute does not have any buyers of this potential power at the present time, nor
does it anticipate buyers with the installation of this basic alternative energy system. Rather, it seeks to
demonstrate a lesser dependence and use of fossil fuel by utilizing solar energy harnessed in battery packs
that reduces the amount of time the inverter generator operates and uses fuel. As the community numbers
increase and the demand for power increasese, the community will seek to include greater applications of
alternative energy such as biomass and/or wind generation to supplement the established battery storage of
solar energy.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Attached.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 18 9/3/2008
4.4.5 Business Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a
minimum proposed business structure(s) and concepts that may be considered.
The greatest obstacle for the village is one of funding; once we have succeeded in getting a
project funded, the tribe has been able to leverage that funding to the betterment of the village.
We leveraged BIA Indian Reservation Roads funding to plan and develop our pioneer airstrip that
was based on obtaining a land base through direct transfer of land from our village corporation.
Obtaining a land base permitted us to apply for and obtain funding from the Administration for
Native Americans to get our community lands surveyed by a Native-owned land survey firm.
Having a land base and surveyed community lots paved the way for establishing a Home Site
Program so that people could settle in the village in a planned manner, much like in the ciy and
the survey allowed the tribe to obtain funding to prepare land adjacent to the pioneer airstrip for
future business attraction once the land was cleared, gravel pads created with water and gravity-
fed septic systems installed culminating in at least one commercial land lease (planned for goal).
Consulting our Community Plan is the basis for this application
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
Power is a commodity that people in cities take for granted; energy to heat homes comes in the
form of natural gas or electric heat. In rural Alaskan villages, power comes from diesel it is
constantly thought about, especially since fuel prices are increasing with each fuel barge delivery.
Installing an energy system that eventually will reduce the amount of diesel used because power
will come from stored energy instead of turning on a generator will help Napaimute
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or avoided cost of ownership)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The system will only displace as much electricity as the solar panels will produce. The current
system used in the village does not consume energy at night because the generator is off; this
project system would run 24 / 7, increasing consumption significantly.
To get an idea of what it might displace, the 9KW generator consumes .93 gal/hr @ full load
(9kw) and .51 gal/hr @ half load (4.5kw); batteries hold 23 KWh of electricity with 5 hours of
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 15 of 18 9/3/2008
run time per charge cycle. Mathematically, 4 hrs x .93 gal + 1 hr x .51 gal = 4.23 gal x $6 a
gallon fuel = $25.40 a day for generator. Without solar using less than 23 KWh a day of
electricity, less than a constant 1000w load. $25.40 \ 23 kwh = $1.10 a KWh for that power
system. 14 x 190 watt panels = 2.66 KW; 1.5 sun hrs in Dec x 2.66 KW = 3.99 DWH x $1.10 =
$13.53 dollars saved per day in June. The village is inhabited approximately 10.5 months per
year; during periods of non-use the batteries would be fully charged and the system turned off.
Our village government views this project as a demonstration project and one that also is an
extension of what is written in our Community Plan, a living document approved by the
membership in 2004, that guides our development. We will not qualify for any economic
incentives and we do not expect to receive any revenue from this project, rather we will lessen
our use of fossil fuels and
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
Requested grant funding: $109,471.29
Napaimute in-kind funding: $14,023.00
Total anticipated project cost: $123,494.29
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 16 of 18 9/3/2008
SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant’s
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all federal state, and local, laws
including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
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