HomeMy WebLinkAboutTenakee Springs Hydroelectric Generation Facility Utilizing Indian Riv App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 13 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 13 9/3/2008
SECTION 1 – APPLICANT INFORMATION
CITY OF TENAKEE SPRINGS
LOCAL GOVERNMENT
P. O. BOX 52
TENAKEE SPRINGS, AK 99841
TENAKEE SPRINGS COMMUNITY BUILDING
TENAKEE AVENUE
907 736-2207
907 736-2207
CITYTKE@WORLDNET.ATT.NET
1.1 APPLICANT POINT OF CONTACT
Arthur Bloom
City Councilman, Hydropower Project manager
P.O. Box 42 Tenakee Springs, AK 99841
907 736-2222
907 736-2207 fax
artmbloom@gmail.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)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
X 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 13 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.
Final Design and Permitting; and Construction of a Hydroelectric Generation facility utilizing
Indian River
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 projec t.
Replace diesel generation of electricity for the community of Tenakee Springs with renewable
hydroelectric power. The City of Tenakee Springs proposes to construct a hydroelectric project
on Indian River. This will be a low head, run-of-river plant displacing the use of at least
33,000 gallons of diesel fuel. Design, engineering, and construction will involve the City of
Tenakee Springs, multiple state and federal agencies, private contractors, and the Alaska Energy
Authority.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
The City of Tenakee Springs is applying for a Renewable Energy Grant of $2,400,000 (two
million four hundred thousand dollars). The City has been awarded a grant of $100,000 (one
hundred thousand dollars) by the Denali Commission and AEA for pre-construction work. Other
grant funding may be pursued. The City of Tenakee Springs could also, upon approval of the
registered voters, provide increased matching funds.
PROJECT COST SUMMARY
1. Finalize Current Feasibility and Conceptual Design Study 60,000
2. Environmental Screening 40,000
3. Environmental Data Collection, State and Federal Permitting 250,000
4. Engineering Design 400,000
5 Construction 1,750,000
Estimated Total Cost Through Construction 2,500,000
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 Tenakee Springs Electric Utility generators use approximately 33,000 gallons of diesel fuel
per year. Additional diesel offsets could be gained by replacing heating oil with electric heat.
The proposed project would help retain money within the community by stemming the outflow
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 13 9/3/2008
of money for petroleum products and providing employment during construction and operation.
Additional Public Benefits would be less pollutants discharged into the air, less risk for
environmental liability, lower cost electricity especially for commercial entities which currently
pay very high rates, and potential expansion of economic base (fish processing and washeteria).
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.)
$ 2,500,000
2.5.2 Grant Funds Requested in this application. $ 2,400,000
2.5.3 Other Funds to be provided (existing grant) $ 100,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 2,500,000
2.5.5 Estimated Benefit (Savings- 30 year analysis, present value
of diesel operation and replacement )
$ 67,000 per year
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.)
$ 25,000 per year
(reduced heating fuel use)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 13 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.
Currently, the project manager is Arthur Bloom, an elected member of the city council and
employee of the city (Hydroelectric Project manager). Additional project management support
will be solicited from a private engineering firm, and from AEA. AEA recently completed an
Energy Infrastructure Project in Tenakee Springs consisting of a Bulk Fuel Upgrade of fuel
storage/handling facilities and Rural Power System Upgrade of new power
generation/distribution systems. The Conceptual Design Report (August 23, 2004) included an
analysis of the proposed hydroelectric project.
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.)
Finalize Feasibility Analysis and Conceptual
Design (Funded from existing grant)
Choose Engineering firm by March 1, 2009
Complete initial environmental screening
with state and federal agencies
June 1, 2009
Obtain state and federal permits June 1, 2009 through June 1, 2011
Select Final Design Engineering Firm January 1, 2010
Select Construction Contractor January 1, 2011
Construction June 1, 2011 through completion
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Prepare and Distribute RFP for Pre-
Construction Feasibility Analysis and Design
January 1, 2009
Begin Environmental Screening with state
and federal agencies
January 1, 2009
Complete Initial Permit Applications June 1, 2009
Finalize Design Concept December 1, 2009
Select Permitting Consultant January 1, 2010
Select Design Engineering Firm January 1, 2010
Select Construction Contractor January 1, 2011
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 13 9/3/2008
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.
An RFP will be issued for specific components of the Feasibility Analysis and Conceptual
Design and a consultant selected from the respondents. The City of Tenakee will bring together
the state and federal agencies having oversight to identify potential problem areas. Once these
two components are achieved Project Management will shift to a consultant and/or AEA.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The proposal assumes significant involvement in the entire project by the Authority.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project utilizes proven technology and construction methods. Other potential problems will
be resolved in the permitting process.
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.
Previous studies (US Army COE, 1984; Polarconsult, 1983) have indicated the proposed project
could have could have a design flow of 40-50 cfs and static head of 115 feet. With a plant capacity of
approximately 270kW the average power generation could be approximately 1,700,000kWh per
year. The community currently uses approximately 350,000kWh per year, but could use more if
electric heat replaced the use of fuel oil, or reasonably priced electric power was available for
commercial enterprises.
A hydroelectric project could displace approximately 33,000 gallons of diesel fuel currently used by
the Tenakee Electric Utility. At $5.00 per gallon this would result in a fuel savings of $165,000
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 13 9/3/2008
annually. Additionally, 20,000 gallons of #1 diesel for heating are used annually which could also be
displaced resulting in a further savings of $100,000 annually. Other environmental and health
benefits of utilizing a clean, renewable energy source are well documented.
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.
Basic configuration of existing system is 3 generators; 2- 98kW peak and 1-66kW peak capacity
installed in 2007 by AEA Rural Power System Upgrade with new switchgear.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The project would have no impact on existing energy infrastructure but would displace the use of
diesel fuel resulting in less air pollution and reducing potential hazards of hydrocarbon storage and
transport.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Electrical power is used in residential homes, commercial businesses, city buildings, streetlights, and
docks, and the REAA school building. The project could have a profound impact by making cheaper
energy available and make the use of electrical energy for heating feasible.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 13 9/3/2008
4.3 Proposed System
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
Run of the river hydroelectric project using penstock and cross flow turbine
Optimum installed capacity 270kW
Capacity factor 80%
Annual generation 1,700,000 kWh
Anticipated barriers: fishery resource
Above ground line to tie into existing delivery infrastructure
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.
Utilizing the full potential of Indian river would involve the City of Tenakee Springs, Forest
Service USDA and State of Alaska. We expect the full cooperation of these entities based on
previous discussions.
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
FERC permit for small hydropower project, SOA Coastal Zone Management
Consistency Review Compliance, DNR water rights, easements, DCOM permits,
ADF&G permits, DEC review, Forest Service permits
Minimum of 3 years
Minimum flow requirements for fishery resource could be a potential barrier.
Information supplied by USFS study determined minimum flow requirement of 10
cfs during salmon spawning. Not anticipated to be a problem as there are sufficient
flows in the fall when coho salmon return to Indian River.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 13 9/3/2008
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
None of the above
4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
$2,500,000 total project cost, request is for complete project
$2,400,000 requested grant funding
Matching funds - $100,000 Denali Commission Grant which includes community match.
Additional matching funds could be available if the community voted to sell some land. In-
kind matching funds could be available from Project Management and use of city equipment
during construction.
No other funding sources currently identified
Projected capital cost $1,800,000
Projected development cost $700,000
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
Total anticipated project cost for this phase
Requested grant funding
O&M of completed project $30,000 to be paid for by electric rates
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
City of Tenakee, private residential customers, commercial business customers, Chatham
School District
$0.15-0.20 per kwh
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 13 9/3/2008
Rate of return unknown
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Sources of data: City of Tenakee Electric Utility records, Polarconsult report, Corps of Engineers
report, AEA Conceptual Design report.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 13 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.
Project will be operated by the Tenakee Springs Electric Utility, a department of the city
government with an Electric Manager. The business structure will be the same as currently
used for the utility, which has been operating for over 20 years.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
Economic analysis is for a 30 year project life and calculates the cost savings of reducing the
costs of diesel generation, lubrication, maintenance, rebuilds, and replacement. This project
has been studied sufficiently to clearly show the economic and environmental benefits and
should proceed to design, permitting and construction.
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
33,000 gallons for direct diesel generation @ $5/gal = $165,000 per year
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
Total project cost is estimated to be $2,500,000. The City of Tenakee Springs has invested
$10,000 to date for a reconnaissance study completed by Polarconsult in 1993. With recent
increases in fuel costs the economic benefits of the project have become outstanding. The city
has also obtained a grant of $100,000 for the Denali Commission and AEA for pre-construction
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 13 9/3/2008
work.
The community of Tenakee Springs has been supportive of this project since the Polarconsult
study in 1993 showed its’ economic viability. Several city council resolutions have been passed
over the years affirming the city’s desire to see the project move towards construction. Given the
short time frame for making this application, it has not been possible to poll the residents for
additional support, but the opportunity exists for the city to put up for sale city owned land to
provide matching funds. The city previously did this to provide financial support of the Fuel
Department.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 13 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