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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 AEA 09-004 Grant Application Page 2 of 18 9/3/2008 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 AEA 09-004 Grant Application Page 3 of 18 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. 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 AEA 09-004 Grant Application Page 5 of 18 9/3/2008 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The 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 & Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 18 9/3/2008 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 18 9/3/2008 SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 18 9/3/2008 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!) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 18 9/3/2008 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 18 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 18 9/3/2008 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) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 18 9/3/2008 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. Print Name Signature Title Date