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HomeMy WebLinkAboutGirdwood Renewable Application of New Technology App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Green Energy in collaboration with University of Alaska, Anchorage Type of Entity: Alaska Green Energy, LLC is an Independent Power Producer Mailing Address 1150 S. Colony Way, Suite #333 Palmer, AK 99645 Physical Address 1150 S. Colony Way, Suite #333 Palmer, AK 99645 Telephone 907-746-4796 Fax 907-746-4798 Email rgross@akgreenenergy.com 1.1 APPLICANT POINT OF CONTACT Name Robert Gross Title Vice President - Operations Mailing Address 1150 S. Colony Way, Suite #333 Palmer, AK 99645 Telephone 907-746-4796 Fax 907-746-4798 Email rgross@akgreenenergy.com 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 X An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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. Project Title: Girdwood Renewable Application of New Technology (GRANT) Project Type: There are four components to this grant application that Alaska Green Energy (AGE) is seeking AEA grant funds. Other public and private funds will be sought for fifth component: The University of Alaska Anchorage (UAA) Renewable Energy Research and Discovery Center. 1. Component 1. Combined Heat and Power Unit (CHP). Reconnaissance and Feasibility Phases are complete. AEA Grant funds will be requested for Final Design/Permitting and Construction. Base Energy Resource: Natural Gas. Supplemental Renewable Energy Resources; Hydro, Wind and Solar. AGE is certified to operate a CHP facility in Girdwood. FERC # QF08-790-000. 2. Component 2. Thermal Electric Generator (TEG). Reconnaissance and Feasibility Phases completed. AEA funds will be requested for Final Design/Permitting and Construction. 3. Component 3. Micro-Hydro Projects. · California Creek Micro-Hydro. Reconnaissance and Feasibility Phases are complete. AEA Grant funds will be requested for Final Design/Permitting and Construction. Renewable Energy Resource: Hydro. · Virgin Creek Micro-Hydro. Reconnaissance Phase complete. AEA grant funds will be request for Feasibility, Final Design/Permitting and Construction. Renewable Energy Resource: Hydro. 4. Component 4. Wind and Solar Generation. Reconnaissance Phase complete. AEA Grant funds will be requested for Feasibility, Final Design/Permitting and Construction. Renewable Energy Resource: Wind and Solar. 5. Component 5. Research and Discovery Center Construction. No AEA funds will be requested. Other funds will be sought for the Reconnaissance, Feasibility/Permitting, Final Design and Construction Phases of this Component. Project Goals: 1. To demonstrate how micro-hydro, wind and solar projects can be tied into a CHP unit that can to help relieve the high energy costs in rural Alaska communities. 2. To collocate the TEG unit with the CHP to maximize even more efficiencies and energy cost savingsby using the excess heat to convert to electricity. 3. To provide nearby renewable energy demonstration projects that can be used by UAA’s School of Engineering for renewable energy research and educational opportunities for students and staff. 4. To reduce the heat and power costs to the Girdwood Elementary School. 5. To lead to the development of a UAA Renewable Energy Research and Public Discovery Center for the long term study and demonstration of Renewable Energy Resources. 6. To provide back up power to key facilities in Girdwood to serve in emergency situations. (For example, Girdwood became a de facto emergency center during the January/February 2000 avalanche event when a total of 37 avalanches occurred along the Seward and Sterling Highways isolating Girdwood and other communities.) 7. Reduce Girdwood’s carbon footprint. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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. This project is located in Girdwood (See Exhibit A). AGE proposes to install a natural gas powered CHP plant with its efficiency enhanced by the TEG unit that will provide heat and power to Girdwood Elementary and the Girdwood public by feeding power into the local electrical grid. Thermal energy will be provided to Girdwood Elementary for space heating, snow melt, and heated pedestrian walkways as well as the research center itself. Two micro-hydro projects located at California and Virgin Creeks will provide hydro power generation to supplement the CHP/TPG plant during periods of sufficient flow estimated at 8 months per year. Again, many rural communities have micro-hydro potential. Small scale solar and wind energy will be developed at the proposed CHP/TPG site adjacent to Girdwood Elementary near California Creek again to demonstrate how alternative sources can supplement an efficient power plant in rural settings. This Construction Project is based on the following reconnaissance level findings: · CHP and TEG power generation systems are proven technologies that, together, are more than twice as efficient as current power generation systems in Girdwood and will reduce the schools carbon footprint by more than half. · Several steep, rapid-flow streams are located in Girdwood. · Solar and wind levels are adequate for demonstration and research purposes. · Available Geo-thermal and tidal energy will provide future research and educational opportunities for UAA staff and students. Finally, other public and private grant funds will be sought to construct a Renewable Energy Research and Discovery Center for UAA. The center is proposed to be constructed on donated Municipality of Anchorage land adjacent to the Girdwood Elementary School. This center will house and showcase the CHP/TEG, and have a small wind generator and solar panels. The micro-hydro projects will be tied into the CHP/TEG. In the same building will be classroom and research space for UAA researchers and students. The public Renewable Energy Discovery Center will be in the front of this building and will be staffed by UAA students. This center will facilitate the study of other renewable sources of energy such as tidal and fuel cells. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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 Overview Milestone or Task Federal Funds State Funds Local Match Funds (Cash) Local Match Funds (In-Kind)Other Funds TOTALS A. UAA Research/Discovery Center 15,000 sf Building & 5 acres of land $6,000,000 $6,000,000 B. (5) acres of land donated by Municipality of Anchorage $1,000,000 $1,000,000 C. Girdwood CHP Plant $1,757,600 $1,757,600 D. California Creek Micro Hydro Plant $1,236,250 $1,236,250 E. Virgin Creek Micro Hydro Plant $1,288,000 $1,288,000 F. Wind Power Plant $167,400 $167,400 G. Solar Panel Plant $35,000 $35,000 H. Thermal Electric Generator $747,500 $747,500 Totals $0 $5,231,750 $0 $7,000,000 $0 $12,231,750 Component 1: CHP Facility Construction: AGE Funding Request: $1,757,600 Land is being secured through the municipality of Anchorage for the CHP facility directly adjacent to Girdwood Elementary on California Creek. Once constructed, power can immediately be fed directly into the Girdwood Electrical Grid. A supplemental facet of this facility will be a world-class research and discovery center. Component 2. Thermal Electric Generator Installation: AGE Funding Request: $747,500 The TEG will be co-located with and enhance the efficiency of the CHP system. Component 3: Micro-Hydro Plant Construction: AGE Funding Request: $2,524,250 Due to the nature of hydro project permitting, this portion will take the longest to construct. It will provide the second largest energy generating component of the Project, and will demonstrate the usefulness of the technology in Alaskan applications. Component 4: Combined Wind and Solar Elements: AGE Funding Request: $202,400 As a supplement to the CHP facility and as a research tool, both the research scaled elements, solar panel grid and windmill, will be procured, placed, and plumbed into the CHP facility’s distribution system. Component 5: Research and Discovery Center Construction/Land: $7,000,000 Other Private and/or Public Funds or Donations. The Research and Discovery Center will be constructed simultaneously to allow for dynamic integration of public viewing and access to key areas of the facility. The tremendous public buy- in and excitement created by this facility will make its funding a positive reflection on the state’s commitment to renewable energy. 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public. The immediate financial benefit of this project is moderate in the context of heat and power savings to the Girdwood Elementary School. The cost savings are conservatively estimated at approximately $21, 500 per year or $430,000 over the 20 year life of the project. Additional savings to the school district may occur if, for example, the life cycle of the school’s heating/boiler system is extended thus eliminating several hundred of thousands of dollars in replacement costs. Reducing Girdwood Elementary School’s carbon footprint by over 50% and providing hands on educational opportunities to Anchorage School District’s students are Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc additional immediate benefits of this project. Though the cash savings may be moderate to the Girdwood Elementary school, this project model will provide significantly higher savings in rural Alaska where energy cost are 3 to 5 times higher that road system communities. The potential economic benefit in rural Alaska is significant and can not be overlooked. Alaska’s rural communities are in the midst of an energy crisis that has no end in sight. Rural residents and governments are struggling to pay for diesel fuel to heat and power their homes and communities. Rural communities and residents are struggling to maintain their cultural integrity and rural lifestyles. Many rural communities are failing and many rural residents are migrating to more affordable urban centers. The economic and social benefits related to maintaining Alaska’s rural lifestyle are significant. This program will help maintain the integrity of Alaska’s rural communities by allowing rural residents afford to live in the community of their choice. There is no silver bullet. No one solution will reduce energy costs in all rural communities. Not all rural communities will be able to divest themselves from diesel fuel. Some communities will be able to reduce their dependency on diesel by installing more efficient power plants and making use of renewable energy resources. Thirty-eight communities have the potential to use Coal Bed Methane as a replacement fuel to diesel. The remaining 200 plus rural communities will have to use some combination of more efficient power production supplemented with micro- hydro, wind, solar or other renewable resources found locally such as geothermal to help relieve their dependence on diesel fuel oil. AGE, in collaboration with UAA, proposes to take advantage of the wide range of renewable resources available in the Girdwood Valley to demonstrate sustainable alternative means of generating heat and power that will have direct application to rural Alaska. Girdwood’s close proximity to the UAA campus affords an unique opportunity for year round outdoor classroom research and education experiences for professors and students. Development of a UAA Renewable Research Center and Discovery Center will help focus renewable energy research and development activities that solve rural Alaska Energy needs. UAA and AGE’s collaboration provides an exceptional opportunity to go beyond the research stage to construction, to go beyond the classroom to the field, to go beyond the theoretical to the implementation of real solutions for the energy crises facing rural Alaska. The economic, research and educational benefits of facilitating the development of a Renewable Energy Emphasis Track in UAA’s School of Engineering are substantial given the need to lessen Alaska’s and the nation from our dependence on oil. The economic benefit of building a cadre of young engineers to meet the needs of the growing Renewable Energy field in Alaska and the nation is immeasurable. 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.) $12,231,750 2.5.2 Grant Funds Requested in this application. $5,231,750 2.5.3 Other Funds to be provided (Project match) $7,000,000 * 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $5,231,750 2.5.5 Estimated Benefit (Savings) $21, 500 annually 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.) Refer to Section’s 2.4 Project Benefits Narrative Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc *The property for the facility is anticipated to be donated by the Municipality of Anchorage to UAA at a estimated value of $1,000,000. We have verbal commitments to this effect as well as a pending LOI.Other private and public funding sources will be sought for the $6,000,000 to construct the UAA’s Research Discovery Center. 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. Project Manager: Bob Gross, AGE’s Vice President of Operations, will manage this project. Bob has extensive experience as a project manager for large oil field; major public and defense infrastructure; and, commercial master planning and development projects. Bob will be responsible all aspects of the project management including being the point of contact with AEA. Bob’s resume and references are attached. 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.) Estimated project duration 2 years. See Exhibit B for details. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. See Exhibit B. 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. AGE’s highly talented management team will be sub-contracting with NANA Pacific and collaborating with equally talented UAA staff and students for engineering, hydrological, environmental and socio-economic services to make the PROJECT happen timely to the benefit of Girdwood and ultimately, rural Alaska. The following is a brief narrative explaining these relationships as well as equipment and services that will be used to make the project happen. Component 1: CHP Facility Construction AGE will provide both management and engineering services for the CHP design. Van Boerum and Frank Associates, with their 25 years experience in design, constructing and providing operation support of CHP systems will do the detail design and support the manufacturing of the CHP Plant. Existing Cook Inlet natural gas will serve as a fuel source for the CHP. The construction of the CHP portion will be bid competitively with solicitations going to GE Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc Jenbacher, Cummins, CAT, Waukesha and others. Component 2. Thermal Electric Generator AGE will provide both project management and engineering services for the 100-250 kwTEG. AGE’s sub-consultant Deluge, Inc. will perform the final design and integration of this system with the CHP. Component 3: Micro-Hydro Systems Construction: AGE will provide both project management and engineering services for the design and construction of the micro-hydro systems. UAA and Brian Yanity of NANA Pacific will assist in hydrological and engineering the projects. Canyon Hydro is the proposed hydro system provider. Component 4: Combined Wind and Solar Elements AGE will collaborate with Alaska Renewable Resources (ARR) for the purchase and installation of all Renewable Energy Technology (except the CHP equipment) which will be used in the research facility. Proposals will be sought from various system providers. Component 5: Research and Discovery Center Construction (LEED) AGE will work with UAA to secure other private and public funding for this project component for the construction of this LEED facility. AGE will provide both management and engineering services for the construction and design of the Center. The construction will be competitively bid following appropriate procurement procedures. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Bob Gross will be AGE’s prime point of contact for AEA and will be available by cell phone and e-mail at presented in Section 1.1 of this grant application. Monthly status reports and quarterly financial reports will be provided per the requirements identified in the Sample Grant Agreement. AGE will meet or exceed all project and financial reporting requirements for this grant. Additionally, Alaska Green Energy will utilize a web-based project management system to track and communicate with large groups of people on our specific projects. This system is state-of- the-art and ensures that everyone involved in the project has clear guidelines on task completion and responsibility. Effectively, this will allow AGE and AEA staffs to collaborate and share data, irrespective of their geographic location. This system will also dynamically create GANTT charts for each project and have discussion forums associated with various milestone requirements dictated for each project when it is undertaken. As it is web-based, loss of data and security are both assured by our webmaster. We will issue a username and password to our AEA designated point-of-contact who will then be able to monitor and make communications about the project, information, files, forums etc. Please visit our website at www.akgreenenergy.com to view this system. 3.6 Project Risk Discuss potential problems and how you would address them. AGE will be responsible for the maintenance and operations of all of the project components and will serve as the Independent Power Producer. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc Component 1: CHP Facility Risk The risk of a CHP process is negligible. The source of fuel is readily available and CHP technology has a proven track record. Its efficiencies are documented as are its byproducts and exhaust and every facet of its design and operation will be over 80% efficient and over 50% improved from currently operated local generation technology. Furthermore, the technology and interties exist to connect in with the local electrical grid. Component 2. Thermal Electric Generator Risk The risk related to the TEG is minimal. TEG is a tested and simple technology that will improve the efficiency of the CHPby converting its heat output to additional electricity. Component 3: Micro-Hydro Installation and Operation Risk A small degree of risk exists any time a construction project interferes or interrupts a waterway. All proper permitting and due diligence will be conducted prior to implementation of the Micro- Hydro technology on California and Virgin Creeks. Construction will follow guidelines provided by the ADF&G Habitat Division. Mitigating and monitoring stream flows and icing issues will be important considerations in the long term maintenance and operations. Component 4: Solar and Wind Facilities Risk These technologies are passive and generate little to no risk for the public or environment. There is a small hazard to birds posed by the windmill, but sound based bird-warning technology mitigates this risk substantially. Component 5: Renewable Energy Research and Discovery Center Risk There is no financial risk to AEA related to the design and construction of the Renewable Energy Research and Discovery Center. All permits will be obtained prior to construction and design will incorporate all relative work place safety requirements. An operational protocol will be established prior to opening to ensure the safety of research staff, students and the public meeting all federal and state work place safety requirements. 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. Natural gas will be the base fuel for the CHP. The TEG will capture heat from the CHP to enhance the system’s efficiency. It is anticipate an 18 MMBtu per day heat source will be available for the TEG. Water Power Head (Hydro)-Various streams run in the vicinity of the Girdwood Elementary School. For example, California Creek contains 7-15 cfs available flow with 300 ft. of available Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc head. Wind-Turnagain Arm winds in this area are consistently in the range of Class 3-4 zones. Study – Tidal, Fuel Cell Technology, Geothermal, and Solar. 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. Chugach Electric Association’s energy production runs at 30% efficiency. This means for the CEA’s natural gas turbines, for every 10 units of energy in, 7 are wasted and exhausted into the atmosphere, providing a large carbon footprint. The CHP plant we propose to construct is over 80% efficient, equating that, for every 10 units of energy in, less than 2 units are wasted. This equates to a carbon footprint that is half the size of conventional power generation. The TEG will enhance this efficiency even further. AGE is working with the Anchorage School District to inventory and verify the existing heating and power system at the Girdwood Elementary School. This specific information will be provided as a supplement to the grant submittal. 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. Girdwood Elementary currently purchases gas from ENSTAR and electricity from Chugach Electric Association. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The impact of AGE’s project will provide stability and energy cost reduction to the Girdwood Elementary School and public in Girdwood. Girdwood is literally at the end of the Chugach Electric line and is often dropped and experiences a brownout. This is a regular occurrence in Girdwood, and causes frustration and damage to private and business equipment in the form of power surges and voltage spikes. Improving the quality and stability of electric distribution in Girdwood is a side benefit of this project. Natural Gas has increased over 70% over the last five years in the ENSTAR service area. Additional increases are proposed. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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 AGE is proposing to design/select the most appropriate gas-fired engine for a combined heat and power station suitable for Girdwood Elementary School. Preliminary system designs have been prepared by GE/Jenbacher and Cummings to assess project feasibility. CAT and Waukesha systems will be also be included in the detailed feasibility study design. The optimum design capacity of the CHP system for the Girdwood School is approximately 350 KW . Peak electrical demands may occasionally exceed the CHP systems capacity and would be satisfied with grid power provided by Chugach Electric Association. Engines being evaluated are continuous duty, resulting in nearly 100% capacity factor minus normal maintenance. The existing electric distribution and hot water heat systems would remain functionally intact to provide backup heat and power when necessary. Annual power production CHP system will be approximately 3.07 Million KW-Hrs and 10,500 MMBtu’s of heat potential. The CHP system’s integration with the Girdwood Elementary School’s existing electrical and heat systems will be achieved by direct connects to the existing systems at a minimal cost. In addition to the proposed Co-Generation System, AGE plans to install a hydraulically driven, electrical generator, to utilize the CHP’s auxiliary heat (approximately 25MMBtu/day) to produce an additional 100kW to 250.kW of electricity, per day. Given the availability of more than adequate Hydro-sustaining creeks in the area, we plan to install two Pelton Turbine or similar systems in the California Creek and Virgin Creek, providing for an additional 360kW of potential electrical generation, per day. The last addition to the renewable energy source for this project will include a 50kW wind system and solar panels to provide even more electrical generation. This will also serve to demonstrate the benefits of these renewable systems at the Girdwood Discovery Center. Our integrated system will provide a substantial supplement to the local energy needs. By ensuring that the local elementary is heated and lighted, regardless of the generation by Chugach Electric, and by using cleaner more efficient natural gas supplemented with other renewable resources, AGE is also providing Girdwood residents a safe place to go in the event of a natural disaster. This security, coupled with power savings, will greatly benefit the local population. 4.3.2 Land Ownership Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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. Land for the project is being donated to UAA by the Municipality of Anchorage. There are no forseen difficulties acquiring access to our Project’s proposed location adjacent to Girdwood Elementary. 4.3.3 Permits Provide the following informationas 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 Anticipated Permits Issuer Issue Date Description Alaska State Fire Marshall Spring 2009 Fire Code Compliance Alaska Department of Environmental Conservation Spring 2009 Title V Air Quality Construction and Final Permit Alaska Department of Environmental Conservation Spring 2009 Wastewater Discharge – UIC, Plan approval Municipality of Anchorage Spring 2009 Girdwood Land Use Permit USCOE Spring 2009 Section 10 and Section 404 Alaska Department of Environmental Conservation Spring 2009 Contingency Plan Alaska Department of Environmental Conservation Spring 2009 NPDES Stormwater Permit - Construction Alaska Department of Environmental Conservation Spring 2009 Oil Discharge & Contingency plan determination ADF&G Habitat Spring 2009 Fish Habitat Permit Alaska DOT Spring 2009 Right of Way Alaska Department of Natural Resources Spring 2009 Alaska Coastal Management Program Alaska Department of Natural Resources Spring 2009 Div of Mining, Land, & Water: Water Rights Alaska Department of Natural Resources Division of Parks SHPO Spring 2009 Determination of Cultural, Historical or Archaeological Impact Determination Alaska Department of Environmental Conservation Spring 2009 Section 401 Discharge Permit FERC Spring 2010 Water Power Development Permit AGE sees no barriers to obtaining these permits by the identified dates.. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc · Archaeological and historical resources · Land development constraints · Telecommunications interference · Aviation considerations · Visual, aesthetics impacts · Identify and discuss other potential barriers Threatened or Endangered species, habitat issues, wetlands and other protected areas, and archaeological and historical resources are addressed in the State permitting process listed above. Bald eagles are known to inhabit the Girdwood area and will be addressed during the permitting stage. Land development constraints will be further identified through the Girdwood Land Use permitting process. Telecommunications interference will not be an issue. Aviation considerations will be determined due to the proximity of the Girdwood Airport. Proper approvals will be obtained from the FAA and NOTAMs will be issued if needed. Visual aesthetics impacts from this work will be mitigated as required by Girdwood Land Use permit and other permitting and approval processes. 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 $12,231,750 · Requested grant funding $5,231,750 · Applicant matching funds – loans, capital contributions, in-kind $7,000,000 · Identification of other funding sources Private and Public · Projected capital cost of proposed renewable energy system $4,046,375 · Projected development cost of proposed renewable energy system $1,185,375 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 · Total anticipated project cost for this phase O&M cost .03 cents/kWh · AGE will not be requesting AEA grant funds for O&M. 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 Anchorage School District will be the primary buyer of heat and power with excess power being sold back to Chugach Electric Association. The price will range from $0.07 to $0.11 cents/kWh. Depending on the final design and installation the rate of return is projected to be between 0.8 and 1.2. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Costs and benefits are based on information provided industry standards, actual manufacturer’s project specifications and costs, and UAA studies. 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. AGE’s role will be as the independent power producer for the system and running the CHP/TEG Plant, the Hydroelectric units and other renewable energy components. UAA’s role will be to assist in the design and engineering and the operation the Renewable Energy Research and Discovery Center. AGE would retain ownership of the power producing equipment, research area and public area and building, and the UAA staff and students would have access to an invaluable research facility and also be providing gainful employment to students in need of work. The CHP/TEG facility would provide heat and electric to Girdwood Elementary School at a rate that would provide a substantial savings over their current rates. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. Transitioning Alaska to renewable energy resources and solving Alaska’s rural energy crisis requires efforts at several levels. The energy solutions resulting from the development and demonstration of realistic, functional alternative and sustainable energy systems will significantly reduce rural Alaskan residents and communities dependence on expensive diesel fuel. This project serves that purpose. Developing and educating a cadre of engineering specialists in the field of renewable and alternative energy development and applications is critical to ensure that existing technologies are refined and improved and new technologies are continually being discovered. This project serves that purpose. Educating the general public to the benefits of energy conservation and using renewable energy to reduce the impact of carbon emissions is critical to health and economy of Alaska and the nation. This project serves that purpose. The benefits of fostering the University of Alaska Anchorage Renewable Energy Curriculum will provide Alaska a leadership role in this expanding field of study. This project achieves this goal. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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 · Potential Annual Fuel displacement savings for the Girdwood Elementary School $21,500 annually or $430,000 over the 20 year life of the project. · Anticipated annual revenue is $434,000. Annual expenses of $404,000 including Maintenance and Operations at $74,000; Sustainability at $30,000; Overhead at $10,000, and Gas purchase $280,000 annually. Profit $30,000. · Potential additional annual incentives (i.e. tax credits). Not Applicable. · Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available). Not Applicable. · Discuss the non-economic public benefits to Alaskans over the lifetime of the project This project provides economic, social, and educational benefits to all Alaskans. It serves as a critical step in the process to transition away from fossil fuels to clean renewable energy. It provides a platform for Alaska to become a leader in the research and development of renewable energy resources and systems especially as they apply to rural Alaska conditions. It helps solve the energy crises in rural Alaska thus serving to maintain the cultural integrity of our rural Native communities and help provide for the financial viability of rural communities. 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 Less than 50% of the funding for this PROJECT is requested from the AEA Renewable Energy Fund Grant Program. The Municipality of Anchorage has indicated that they will donate up to 5 acres of property adjacent to the Girdwood Elementary School valued at $1,000,000. The balance of funding for the UAA Renewable Energy Research and Discovery Center will be sought from private foundations and other public sources. Please refer to Tab 7C Grant Budget for details. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 16 08-Oct-2008 Z:\AEA Grant 2008\Girdwood Valley CHP\GV AEA Grant Application-Final.doc 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 Robert Gross Signature Title Vice President, Operations Date 10-08-2008