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HomeMy WebLinkAboutWind-diesel Project for Buckland, Deering, and Noorvik AppNorthwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 1 of 58 Northwest Arctic Borough October 7th 2008 Proposal for Renewable Energy Fund Alaska Energy Authority Grant Wind-Diesel Project for Buckland, Deering, and Noorvik Rural Alaskans in the Northwest Arctic Borough, NWAB, are facing some of the highest costs anywhere in the nation. In order to proactively address the region’s Energy Crisis, declared by the NWAB in September 2008, the NWAB is working to implement long term energy options. While there are a variety of alternative energy options available in NW Alaska, such as wind, solar, geothermal, and biomass; wind energy has a proven track record of success in our communities. Installing and integrating wind turbines in three NW Alaska villages is a big step toward securing the future of rural Alaska. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 2 of 58 Table of Contents 1. Applicant Information ........................................................................................................................... 3 1.1. Applicant Point of Contact.................................................................................................................. 3 1.2. Applicant Minimum Requirement ....................................................................................................... 3 2. Project Summary .................................................................................................................................... 4 2.1. Project Type ............................................................................................................................................ 4 2.2. Project Description................................................................................................................................. 4 2.3. Project Budget Overview...................................................................................................................... 4 Figure 1: Project Cost Estimate................................................................................................................... 6 Figure 2: Project Cost Share........................................................................................................................ 7 Figure 3: Letter of NANA Regional Corporation’s Contributions........................................................... 8 2.4. Project Benefit......................................................................................................................................... 9 2.5. Project Cost & Benefit Summary........................................................................................................10 3. Project Management Plan ..................................................................................................................11 3.1. Project Manager..................................................................................................................................11 3.2. Project Milestones ................................................................................................................................12 3.3. Project Schedule..................................................................................................................................14 Figure 4: Project Schedule and Milestones.............................................................................................14 3.4. Project Resources.................................................................................................................................16 Figure 5: Technical Participants................................................................................................................17 Figure 6: NANA Pacific Letter of Commitment......................................................................................19 3.5. Project Communications....................................................................................................................21 3.6. Project Risk.............................................................................................................................................21 4.1. Proposed Energy Resource.................................................................................................................22 Figure 7: Description and Evidence of Wind Energy in Project Communities...................................22 Figure 8: Wind Resource in Buckland ......................................................................................................23 Figure 9: Wind Resource in Deering.........................................................................................................26 Figure 10: Wind Resource in Noorvik........................................................................................................29 4.2. Existing Energy System.........................................................................................................................30 4.3. Proposed System..................................................................................................................................31 4.4. Proposed System..................................................................................................................................35 Figure 11: Proposed Project Economics...................................................................................................36 Figure 12: Reduction in diesel fuel and annual avoided costs...........................................................36 5. Project Benefit .......................................................................................................................................44 6. Grant Budget.........................................................................................................................................45 Figure 13: Budget Breakdown-Noorvik....................................................................................................46 Figure 14: Budget Breakdown-Deering...................................................................................................47 Figure 15: Budget Breakdown - Buckland ..............................................................................................48 7. Additional Documentation and Certification ..................................................................................50 Figure 16: Northwest Arctic Borough Resolution....................................................................................52 Figure 17: Ipnatchiaq Electric Company Resolution ............................................................................54 Figure 18: City of Buckland Resolution ....................................................................................................56 Figure 19: AVEC Letter of Commitment..................................................................................................57 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 3 of 58 1. Applicant Information Northwest Arctic Borough Po Box 110 Kotzebue, Alaska 99752 Phone: (907) 442-2500 Fax: (907) 442-2930 1.1. Applicant Point of Contact Katherine Keith Kotzebue Electric Association Po Box 44 Kotzebue, Alaska 99752 k_keith@kea.coop Work: (907) 442-3491 Cell: (651) 332-0584 Fax: (907) 442-2482 1.2. Applicant Minimum Requirement 1.2.1. As an Applicant, we are a government entity. 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 participants governing authority is necessary. 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. 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.) Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 4 of 58 2. Project Summary 2.1. Project Type This is a construction project which will generate electricity using the locally available wind resource. 2.2. Project Description Rural Alaskans in the Northwest Arctic Borough, NWAB, are facing some of the highest costs anywhere in the nation. In order to proactively address the region’s Energy Crisis, declared by the NWAB in September 2008, the NWAB is working to implement long term energy options. While there are a variety of alternative energy options available in NW Alaska, such as wind, solar, geothermal, and biomass; wind energy has a proven track record of success in our communities. Installing and integrating wind turbines in three villages is a big step toward securing the future of rural Alaska. The goals of the proposed project are: • To develop the wind energy potential in the communities of Buckland, Deering, and Noorvik, • To develop appropriate wind generation engineering plans and designs, and • To construct the necessary wind generation facilities (fully integrated with diesel power systems). This is a two year project. Year one involves performing both pre-construction and construction tasks in Deering and Noorvik as well as pre-construction tasks in Buckland. Year two involves construction tasks in Buckland. 2.3. Project Budget Overview As detailed in Figure 1 and Figure 2 below, the total project cost is $9,792,710. Currently, agencies within the Northwest Arctic Borough (NWAB) have contributed match funds in the amount of $162,800. The match funding was obtained from the NANA Regional Corporation, NRC, who fully endorses this project. NRC is donating gravel for foundation work and three acres of land at each wind site. NRC is also contributing $150,000 for pre- construction work which was obtained through a Department of Energy grant for wind resource development. The project costs include the material and shipping costs of seven Northwind 100 Nacelle Turbines and the standard 37 foot tower; the foundation costs, transmissions lines, and associated administration, engineering, construction management, and contracting fees. The NWAB will continue to seek funding on behalf of the villages. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 5 of 58 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 6 of 58 Deering $620,000 $193,600 $813,600 Buckland $930,000 $290,400 $1,220,400 Noorvik $930,000 $290,400 $1,220,400 SUBTOTAL $2,480,000 $774,400 $3,254,400 Deering $622,000 $0 $622,000 Buckland $933,000 $0 $933,000 Noorvik $933,000 $0 $933,000 SUBTOTAL $2,488,000 $0 $2,488,000 Deering $5,500 $0 $5,500 Buckland $8,250 $0 $8,250 Noorvik $8,250 $0 $8,250 SUBTOTAL $22,000 $0 $22,000 Deering $2,400 $0 $2,400 Buckland $3,600 $0 $3,600 Noorvik $3,600 $0 $3,600 SUBTOTAL $9,600 $0 $9,600 Erected cost of 13.8 Kva transmission lines (wood poles) roadway Deering $525,000 $0 $525,000 Buckland $1,750,000 $0 $1,750,000 Noorvik $0 $0 $0 SUBTOTAL $2,275,000 $0 $2,275,000 Preliminary Construction Deering $54,200 $0 $54,200 Buckland $54,200 $0 $54,200 Noorvik $54,200 $0 $54,200 SUBTOTAL $162,600 $0 $162,600 Direct Costs Subtotals Deering $1,829,100 $193,600 $2,022,700 Buckland $3,679,050 $290,400 $3,969,450 Noorvik $1,929,050 $290,400 $2,219,450 Direct Cost Total $8,211,600 Engineering & Administration @ 15%$1,231,740 Construction Management @ 8%$656,928 Contractor Overhead and Fee @10%$821,160 TOTAL COST WITH OVERHEAD AND ENGINEERING $10,921,428 Spare Parts Set Northwind 100 Nacelle Turbines and 30 meter tower Foundation Costs (Freezeback pilings;fabricated base; shipping) Cost TotalFreight Functional Checkout and Commissioning Northwest Arctic Borough                                                                               Wind Development in Buckland, Deering, and Noorvik                                                      Cost Estimate       10/2/08                                                                              Item Figure 1: Project Cost Estimate Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 7 of 58 NANA Regional Corporation NANA Regional Corporation will provide  gravel as a portion of its cost share match.   Deering/Noorvik in year 1 and Buckland  year 2.Material $7,500 NANA Regional Corporation 9 acre of NRC land for construction of wind  turbines. The value of this is currently  unconfirmed at this point. Land $0 City of Buckland The City of Buckland will be requested to  contribute $5,000 in uncollected  professional staff time.In Kind $0 AVEC AVEC will be asked to contribute up to  $15,000 as part of its contribution to  oversight on Noorvik.In Kind $0 Ipnatchiaq Electric Company The Ipnatchiaq Electric Utility is  contributing $5000 in uncollected  professional staff time for the proposed  effort. In Kind $5,000 COST SHARE TOTAL $162,500 Total Project Cost:  $10,921,428 Cost Share Total:  $162,500 Percentage Cost Share:   1.5% Northwest Arctic Borough                                                                               Wind Development in Buckland, Deering, and Noorvik                                                      Cost Share       10/2/08                                                                              Organization Cost Share Item Type Amount NANA Regional Corporation NRC was awarded $150,000 from DOE for  prelimary feasibility studies and renewable  energy assessments.   Cash $150,000 Figure 2: Project Cost Share A letter indicating the above cost share funding is provided below. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 8 of 58 Figure 3: Letter of NANA Regional Corporation’s Contributions Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 9 of 58 2.4. Project Benefit As in other parts of the country, energy costs in Alaska continue to rise at an alarming rate. In our remote corner of the state, electricity can exceed $.60/kWh and fuel costs are often upwards of $9.00/gallon. Many of the borough’s disadvantaged residents are forced to choose between heating their homes and buying groceries. The high cost of energy negatively impacts community members, local government, and agencies providing services to the area. The Northwest Arctic Borough (NWAB) is working to address this energy crisis in Northwest Alaska. The proposed wind generation infrastructure will help stabilize energy costs, providing long- term socio-economic benefits to villages. The NWAB is confronted by the reality that plagues much of rural Alaska: extremely limited economic opportunity combined with an almost astronomical cost of living. Faced with the challenges of high costs, limited local employment options and the need to support their families, rural Alaskans are forced with the choice of leaving village life behind in order to relocate to larger cities in search of employment and affordable living. In such small communities, each household is important to the well-being of the entire community. With more affordable energy available in the villages, more of our region’s households will be able to afford to stay in their communities, promoting community stability and wellness and helping to stem the tide of rural migration. NW Alaska suffers greatly from the high cost of electricity. 2008 residential power rates in the region varied from $.48/kWh in Kotzebue (up from $.39/kWh in 2007) to $.71/kWh in Noatak. The anticipated benefits of this project are many; primary among these is reducing the negative impact of the cost of energy in these communities by providing a renewable energy alternative. This alternative could help stabilize energy costs and provide long-term socio-economic benefits to village households. Locally produced affordable energy will empower our community residents and will help avert rural to urban migration. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 10 of 58 2.5. Project Cost & Benefit Summary 2.5.1. Total Project Cost: $10,921,428 2.5.2. Grant Funds Requested in this Application: $10,758,928 2.5.3. Other Funds To Be Provided: $162,500 2.5.4. Total Grant Costs (Sum of 2.5.2 and 2.5.3): $10,921,428 2.5.5. Estimated Benefit (Savings): 2.5.5.1. $650,166/yr (Based on 2008 fuel prices) Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 11 of 58 3. Project Management Plan 3.1. Project Manager The Northwest Arctic Borough will have executive oversight of this project and will provide the administrative and financial management systems which comply with the standards set forth in the grant applications. The major participants in this project include the NWAB, the tribal villages of Buckland, Deering, and Noorvik, and the entities responsible for operating the electric utilities in each of these communities (Kotzebue Electric Association, Ipnatchiaq Electric Company, Alaska Village Electric Corporation). Each of these entities has actively participated in the development of this proposal, and each is fully committed to the project’s success. Contact Title Add- ress City/State E-mail Phone Fax City of Buckland Darlene Hadley City Administrator PO Box 49 Buckland, AK 99727 city_of_bucklan d@yahoo.com 907- 494- 2121 907- 494- 2138 Ipnatchiaq Electric Company Ruth Moto- Hingsbergen Electric Utility Manager PO Box 36021 Deering, AK 99736 ipnatchiaqec@ msn.com 907- 363- 2157 907- 363- 2307 Alaska Village Electric Cooperative Brent Petrie Manager, Community Dev. & Key Accounts 4831 Eagle Street Anchorage AK 99503 bpetrie@avec. org 907- 561- 1818 907- 561- 2388 Northwest Arctic Borough Annabelle Alvite Grants & Community Development Administrator Po Box 1110 Kotzebue, AK 99752 aalvite@nwabo r.org 907- 442- 2500 907- 442- 2930 Kotzebue Electric Association Brad Reeve General Manager Po Box 44 Kotzebue, AK 99752 b_reeve@kea.c oop 907- 442- 3491 907- 442- 2482 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 12 of 58 3.2. Project Milestones 3.2.1. Pre-Construction Program Activities Project Start-Up and Additional Data Analysis: Following a Notice to Proceed (NTP), the project team will meet to establish project guidelines, assign responsibilities, develop an appropriate communication plan, and identify information gaps. The group will confirm which site or combination of sites are most favorable and conduct any required additional inspection, evaluation, and analysis for the pre-construction activities. Redeployment of the Met Tower and Wind Resource Assessment Program: A 30 meter tower has been deployed at the Deering site, and an existing met tower in Buckland will be re-deployed to a new site. The re-deployment is an in-kind contribution to this proposed project by NRC. Preliminary Site Planning: NANA Pacific, NP, shall prepare a Preliminary Site Plan (PSP) utilizing aerial photos of the target area. It will show proposed locations of wind turbine(s), access roads, temporary material lay down sites, existing transmission and distribution power lines, and other details. Observations will be noted about suitable foundation and construction conditions, including topography, soil types, flooding and erosion potential, sensitive habitats, and existing man-made structures. Geotechnical Review: The NWAB will sub-contract with a qualified geotechnical engineering company for preliminary geotechnical review of the sites, site characterization, and review of aggregate supply. Environmental, Antiquities Analysis (EAA) & Permit Review: The project team shall coordinate an EAA assessment for the project, identifying any potential environmental and cultural impacts as well as prevention or mitigation strategies for these impacts. Design and Planning: The project team and project stakeholders will present the results from the previous steps during a Project and Design Development meeting. Wind-diesel Integration Study & Design: The project team will coordinate a wind-diesel integration study; including assessments of dynamic load control, balance of system electrical interconnect assessment, SCADA systems, heat recovery analysis, and conceptual system design. Civil/Structural Engineering on Wind Turbine Tower Foundation: The project team will evaluate the geotechnical report and recommend, design, and engineer a foundation appropriate to each individual site. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 13 of 58 Electrical Interconnect Design: Design will include conceptual electrical one-line diagram, conceptual distribution routing, and conceptual load study. Existing and additional arctic grounding requirements will be evaluated to meet State of Alaska requirements. The wind turbine – diesel generation facility control integration is outside the scope of this project and will be done by others. Heat recovery and distributive heating systems: The project team will evaluate feasibility of heat recovery systems in the village and provide drawings drawing of feasible distributive heating system. Control of these systems is to be done by the wind turbine–diesel integration contractor. Business and Operations Plan: The project team will assess and clarify issues related to ensuring efficiency in the ongoing operations of the utility such as technician training, ongoing O&M integration, and impacts on rate payers. Final Design, Construction/Installation Plan, O&M Plan, and Business Plan submittal: This final step will ensure efficient execution of the proposed plan and assure that roles and responsibilities are executed during the operation’s phase. 3.2.2. Construction Program Activities Equipment Procurement: Procure wind turbines and equipment for power system control and energy utilization, diesel automation and modification, towers and foundation, and communications. Installation: Upgrade diesel gen-set controls and install wind tower foundations and towers, wind turbines, power line from wind turbines to power plant, system controllers, power converter and battery storage, resistance heaters in power plant and school, and a communications network linking all system nodes. Commissioning: Write O&M manuals, make system modifications, monitor and report on system performance, and provide local operator training, system maintenance, and technical support services Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 14 of 58 3.3. Project Schedule The installation of wind diesel hybrid power systems in Deering, Noorvik, and Buckland will occur over a 24-month period, starting October 1, 2008. The project period is divided into eight quarters, in both Year 1 (Q1-Q4) and Year 2 (Q5-Q8). The wind turbine installations in Deering and Noorvik (D/N) are planned for Year 1, and the wind turbine installation in Buckland (B) is planned for Year 2. However, if all technical, design, and financing issues are resolved during the summer 2009, then Buckland could mobilize concurrently with Noorvik and Deering. The project schedule is detailed in the following table. Project Stage and Task Start End Lead Partner Pre-Construction Phase Project Initiation Q1 Q2 • Identify project partners NWAB • Develop project plan NWAB,NP, KEA, AVEC, NRC Data Collection Q1 Q8 • Compile historical data on Buckland/Deering/Noorvik facility energy demand, electricity, fuel expenses, and thermal load NP, D, B, N, AVEC, KEA, NRC • Collect initial wind data from Buckland, Noorvik and Deering, and produce summary reports* NP, AEA, D, B, N, AVEC, KEA, NRC • Continue collecting wind data from B, N, D for a year after system installation and produce summary reports* NP, AEA, D, B, N, AVEC, KEA, NRC *Note: The budget for these tasks comes under a parallel project. Environmental Impact Assessment Q1 Q4 • Avian habitat and endangered species review NP, AVEC, KEA • Flood plain/wetlands/hydrology and fisheries review NP, AVEC, KEA • Historical and archeological review NP, AVEC, KEA • Permit review NP, AVEC, KEA Design & Testing Q1 Q3 • Assess B/N/D electric load, thermal load, and wind resource NP, AVEC, D, B, N, AEA • Develop preliminary system design NP • Conduct preliminary system design review NP Figure 4: Project Schedule and Milestones Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 15 of 58 Project Stage and Task (Page 2) Start End Lead Partner Pre-Construction Phase Design & Testing (continued) Q1 Q3 • Specify major system components incl. wind turbines, wind- diesel system supervisory controller, heating load controller, dedicated power metering, and heating system retrofit. NP • Site wind turbines NP, AVEC, KEA • Develop final system design incl. feeder line from turbines to power plant and communications network linking all nodes NP • Conduct final system design review NP Construction Phase Equipment Procurement Q1 (D/N) Q5 (B) Q2 (D/N) Q6 (B) • Procure power system control and energy utilization equip. NP • Procure diesel automation and modification equipment NP • Procure wind towers and foundation equipment NP • Procure wind turbines NP • Procure communications equipment NP Buckland-Deering-Norvik Installation Q2 (D/N) Q6 (B) Q4 (D/N) Q8 (B) • Install wind tower foundations and towers NP, AVEC, KEA • Upgrade diesel gen-set controls NP, AVEC, KEA • Install system controller NP, AVEC, KEA • Install resistance heaters in power plant and school NP, AVEC, KEA • Install wind turbines NP, AVEC, KEA • Install power converter and battery storage NP, AVEC, KEA • Install feeder line from wind turbines to power plant NP, AVEC, KEA • Install communications network linking all system nodes NP, AVEC, KEA Commissioning Q3 (D/N) Q7 (B) Q4 (D/N) Q8 (B) • Write O&M manuals NP, AVEC, KEA • Provide local operator training, system maintenance, and technical support services NP, AVEC, KEA • Make system modifications NP, AVEC, KEA • Monitor and report on system performance NP, AVEC, KEA Post-Construction Phase System Assessment Q2 (D/N) Q6 (B) Q4 (D/N) Q8 (B) • Prepare economic analysis of project from NANA/IEC/Buckland/AVEC perspective NP, AVEC, KEA, NRC • Prepare prelim. economic analysis from regional perspective NP, NRC • Prepare final economic analysis of project from the NANA/IEC/Buckland/AVEC perspective using wind data NP, AVEC, KEA, NRC • Develop project plan for replication in other community NP, AVEC, KEA Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 16 of 58 3.4. Project Resources 3.4.1. Personnel/Partners NANA Pacific NANA Pacific will assist the NWAB by performing management functions for the project. NANA Pacific is a project management, engineering, and consulting company, with a specialty in energy. Providing energy related services, including energy planning, bulk fuel conceptual design, power distribution/design, wind resource assessments, financial and economic modeling, diesel power generation/distribution, rural infrastructure development, and facilitation. NANA Pacific’s project/program management projects are handled by professionals with industry experience in construction, engineering, consulting, and development. NANA Pacific key personnel include: Jay Hermanson has managed multiple renewable energy studies in Alaska and elsewhere, and holds an MBA from the University of Alaska, Anchorage. Technical expertise will be provided by Brian Yanity, he holds a BS in Electrical Engineering from Columbia University and an MS in Arctic Engineering from the University of Alaska, Anchorage. The project will also benefit from the provision of additional technical expertise by Douglas Vaught with V3 Energy and Stuart Parks with NANA-Colt. Both Mr. Vaught and Mr. Parks have extensive experience with rural Alaskan wind energy projects, and both are state-certified Professional Engineers. NANA Regional Corporation Sonny Adams, NRC Project Manager, will assist the NWAB in taking responsibility for building regional and community support for the project, and help to serve as the project’s community liaison, and will conduct site visits to ensure satisfactory project progress. Mr. Adams brings extensive experience working on a variety of projects throughout the NWAB. Jeff Nelson, NRC’s Assistant Director of Lands, will provide additional project support. Mr. Nelson has extensive knowledge of applicable state and federal laws, and a history of working successfully with the NRC Board of Directors on leases, easements, and permits Kotzebue Electric Association Kotzebue Electric Association, KEA, is a nonprofit Rural Utility Systems cooperative that serves the residents of Kotzebue, Alaska. KEA owns a wind-diesel power plant which has six engine/generator sets and 17 wind turbines (with a total installed wind capacity of 1.14 MW). KEA has demonstrated successful leadership and innovation in remote wind- diesel applications and will be a valuable partner for this project. Kotzebue Electric Association, KEA, and Alaska Village Electric Cooperative, AVEC, have agreed to assist the Northwest Arctic Borough in whatever capacity is necessary. This Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 17 of 58 could include, but is not limited to, project management, engineering, construction, project advice, and operations and maintenance training. The NWAB will coordinate the following technical participants for implementation of the project. Participant Description and Capabilities Designee NANA Pacific NANA Pacific is a project management, engineering, and consulting company, with a specialty in energy. Jay Hermanson Kotzebue Electric Association (KEA) Non-profit electrical utility provider for Kotzebue and contractual manager of Buckland’s utility. Expertise includes wind-diesel systems in arctic environments. KEA will play a critical role in the operations and maintenance plan. Brad Reeve City of Buckland Electric Utility Electrical utility provider for Buckland. Expertise includes diesel systems and understanding of Buckland’s energy needs. Darlene Hadley Ipnatchiaq Electric Company Electrical utility provider for Deering. Expertise includes diesel systems and understanding of Deering’s energy needs. Ruth Moto- Hingsbergen NANA Regional Corporation NRC is one of 12 Alaska Native Regional Corporations, serving over 11,400 shareholders in the NANA region and its traditional communities. Expertise in project management Sonny Adams Northern Power Systems Provider of Northwind100 turbine system. Expertise includes nearly 30 years of experience developing and installing wind power technology and partnering with government and commercial entities including DOE, NASA and NREL. Brett Pingree V3 Energy, LLC Consulting firm with expertise in Alaskan wind energy projects: site selection, installation, training and data analysis. Douglas Vaught, P.E. NANA/Colt Engineering, LLC Multidisciplinary engineering firm focusing on engineering, procurement and construction management services in rural Alaska and beyond. Expertise in project management in Alaska’s utility, petroleum, mining and government industries. Stuart Parks, P.E. Alaska Village Electric Cooperative (AVEC) Non-profit electric utility that provides power generation services to Noorvik. Expertise includes engineering, community development, O&M, and distribution. Brent Petrie Figure 5: Technical Participants Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 18 of 58 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 19 of 58 Figure 6: NANA Pacific Letter of Commitment Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 20 of 58 Person Al “Sonny” Adams, Jr. Current Employer NANA Regional Corporation, Inc. Position Projects Manager Project Role NANA Regional Corporation Projects Manager and Community Liaison Duties and Responsibilities Provide project information to villages and NANA Regional Corporation Senior Management. Gather Regional Community Support for renewable energy projects through Strategic Energy Plan. Facilitate site visits to ensure project progress. Coordinated team meetings to ensure good project communication. Specific Qualifications • Familiar with NANA Region. • Familiar with Inupiaq Culture, Subsistence and Traditional Activities. Relevant Experience Current position: Projects Manager September 2007 to present • Assists with oversight of the Red Dog Mine. • Assists with gravel sales in the NANA Region. • Assists with NANA’s Energy Grants. Past Position: Metallurgical Engineer Dec 2004 to Sept 2007 • Trained flotation operators. • Worked with flotation and grinding operators to optimize zinc and lead circuits. • Responsible for clean water discharge into the environment. Past Position: Training Supervisor 1997 to 1999 • Responsible for updating training manuals and safety procedures Past Position: Mill Operator 1989-1997 • Flotation – Responsible for maximizing Lead and Zinc grades and recoveries. • Grinding – Responsible for liberation of sphalerite and galena from gangue particles. • Water Treatment – Responsible for clean water discharge. • Dewatering - Responsible for minimizing water content in zinc and lead concentrates. • Reagents – Responsible for mixing reagents to adequate strengths. • Shiploader and Truck Dump – Responsible for storage and shiploading zinc and lead concentrates. Past Position: Commercial Fisherman 1977 to 1987 • Worked as Captain and helper in the Kotzebue Sound. Certifications/Registrations/ Professional Organizations Bachelor of Science in Metallurgical and Materials Engineering Education Montana Tech, University of Montana - Butte, Montana Area of Study: Metallurgical Engineering – Mineral Processing State of Residency Alaska (Anchorage) Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 21 of 58 3.5. Project Communications The NWAB will schedule monthly meetings between project partners to ensure proper communication. These partners will include NANA Regional Corporation, NANA Pacific, NANA Colt Engineering, Kotzebue Electric Association, Alaska Village Electric Cooperative, City of Buckland, Ipnatchiaq Electric Company, City of Noorvik, Northern Power Systems, and V3 Energy, LLC. The NWAB will work closely with all subcontractors to ensure that the project schedule is followed and high quality products are delivered. The NWAB will provide quarterly reports to the Alaska Energy Authority (AEA). Project collaborators will provide additional reports to NWAB as required by AEA. The NWAB will submit reports directly to AEA. In addition, public presentations on project progress will be given at community meetings and possibly conferences. Informational brochures and other publications will be produced for the general public. 3.6. Project Risk Logistical challenges and delays associated with construction in our remote rural Alaskan communities represent potential barriers to the success of the proposed project. The three villages proposed as sites for this project are remotely located from the nearest hub airport, and are reachable only by small airplane, snowmachine (snow mobile/skidoo), or seasonally available barges which travel on local waterways to bring supplies, fuel and other goods to the villages. Because of changeable weather conditions and the complex logistics involved in transporting materials to such remote locations, the season for barge transport is extremely limited, and shipping delays are quite common. However, the NWAB is accustomed to dealing with such limitations, and its proposed partners also have extensive experience in addressing the difficulties associated with conducting business in such challenging conditions. Shipping arrangements for construction equipment and supplies will be made with ample allowance for possible delays, and sufficient flexibility will be included in construction schedules to ensure on-time and successful completion of all project phases. Finally, limited match funds may impede the project in the short term. At this time, the 20% match requirement is not in place. The NWAB will coordinate a capital campaign for the project and will pursue funding through USDA’s High Cost of Energy Grant, develop local financing plans based on cost savings, and pursue various funding and financing opportunities. During April 2008, a delegation from the NANA/NWAB traveled to Washington, DC, to learn more about funding for renewable energy projects for the region. These leads will also be pursued. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 22 of 58 4. Project Description and Tasks 4.1. Proposed Energy Resource The following table highlights the areas to be targeted and provides evidence of the available energy resource. Description Evidence Buckland AEA and KEA installed a met tower in Buckland in 2005; approx. 16 months of data have been recovered. The present met tower site is in a Class 2 wind regime, but the proposed project will continue with the already installed anemometer and wind data in a different location with predicted Class 4 to 5 winds. The accuracy of the state of Alaska’s high resolution wind map has been confirmed with the collection of the anemometery study. A Class 4 or 5 wind resource is a reasonable assumption for the proposed site. Wind Resource Map of Alaska. Met Tower results. AEA wind resource assessment website. Deering The NREL average Wind Power Class Category is 5. The proposed project will continue with KEAs existing installed anemometer. The Wind Resource Map of Alaska suggests a class 5 wind regime, with an assumed average wind speed of 7.2 m/s. The available data shows 1 year of wind data. Alaska Rural Energy Plan1: NREL Reconnaissance. AEA wind resource assessment website. Noorvik The Wind Resource Map of Alaska suggests a Class 2 or 3 wind regime, with an assumed average wind speed of 5.8 m/s. Through a 2002 study commissioned by Maniilaq Association, there are 12 months of available data. AEA wind resource assessment website. 2002 Maniilaq Association Report Figure 7: Description and Evidence of Wind Energy in Project Communities 4.1.1. Buckland The Alaska Energy Authority, assisted by Kotzebue Electric Association and village labor support, installed a 30 meter met tower just south of Buckland Village Center in September 2005. While data collection is ongoing, a 15 month gap in data exists from October 2005 to January 2007. At the present met tower location, Buckland exhibits a marginal wind resource for wind power development, with an annual average wind speed at 30 meters elevation of 4.6 m/s and Wind Power Class 2. While this class is generally not adequate for wind development, more promising locations (Class 4) exist in the hills approximately five miles west of Buckland. 1 Foster, Mark. Alaska Rural Energy Plan. Initiatives for Improving Energy Efficiency and Reliability. April 2004. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 23 of 58 Figure 8: Wind Resource in Buckland 4.1.2. Deering Deering was a candidate village about thirteen years ago for an innovative REL/AEA/AVEC/Kotzebue Electric Association wind-diesel project that was installed in the village of Wales and wind studies were conducted to generate data needed to support the project. The primary sources of data were the NOAA National Weather Service Automated Surface Observing System (ASOS) data from the Deering airport and five months of met tower data from a 30 meter NREL met tower that apparently was located near the airport. Although it is likely that more than five months of data was collected from the met tower, it appears that this is all that has survived. Ian Baring-Gould of NREL sent a summary spreadsheet of the ASOS data to NANA Pacific, LLC; data range is January 1998 to September 2002. In examining this spreadsheet, it is apparent that this data was used for an analysis of a wind-diesel system for Deering as the ASOS data summary tables had been re-summarized into a HOMER inputs worksheet that contained the information needed to create a Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 24 of 58 HOMER file for wind-diesel analysis. The summary data inputs were monthly average wind speeds at the ASOS 10 meter AGL anemometer level, Weibull k coefficient, autocorrelation factor, diurnal pattern strength, and hour of peak wind speed. Also included in this spreadsheet was a wind frequency rose (shown here). Although Mr. Baring-Gould did not forward to us the original HOMER file used to evaluate Deering (it may have been lost), with this information a new HOMER file was created for the wind resource. With the statistical wind information inputs, HOMER employs a mathematical algorithm to generate a virtual wind resource with hourly wind speeds for an entire year. For further analysis, an output file from HOMER was generated and used as data input into the Windographer wind analysis software to better examine the wind characteristics in Deering (note that Windographer’s wind-specific graphics capabilities are superior to those in HOMER). The ASOS data, run through the Windographer software, indicates that the Deering airport classifies as a low Class 4 (good) wind resource with a calculated 10 meter mean annual wind speed of 4.97 m/s, a 10 meter elevation wind power density of 208 W/m2 and a predicted 50 meter wind power density of 409 W/m2. The 50 meter wind power density prediction is less certain because with only one anemometer level, Windographer assumes a power law exponent of 0.14 for wind shear. A met tower would collect data that would enable one to calculate a precise power law exponent value, but 0.14 is a reasonable estimate. Note that on the AEA wind resource assessment website (http://www.akenergyauthority.org/programwindresourcedata.html ), a similar wind analysis is posted for Deering using the same data source, the airport ASOS station. With a longer data collection period, AEA calculated a 10 meter elevation wind power density of 195 W/m2, which correlates to a high Class 3 (fair) wind resource. This classification difference is less than it appears however as the variance between the two wind power density calculations is only about seven percent. As one can see in the Wind Resource Map of Deering (courtesy of AEA), the airport itself in Deering is predicted to be a Class 2 wind resource, but the area just north of the airport, between the airport and the village, is predicted to be a Class 3 wind resource. Presumably the ASOS station is located within the boundaries of the predicted Class 3 wind resource and hence, the data analysis indicating a low Class 4 or high Class 3 wind resource correlates with the modeled wind resource prediction. With this correlation of ASOS data to the wind resource map, we are confident that the predicted superior wind resources at the project site near Cape Deceit are accurate. If so, the Cape Deceit site can be expected to be a Class 4 wind resource. An analysis of interest to indicate the viability of a potential wind turbine project in Deering is to consider the predicted turbine performance of a Distributed Energy NW100/21 (the new “B” model turbine with a 21 meter rotor diameter). As indicated in below, one NW100/21 located at the airport (the location of the ASOS station) could be expected to generate approximately 205,000 kWh per year of energy (30 meter hub height and 96% turbine availability). If a Cape Deceit site were to prove to be 15% superior to the ASOS site in terms of energy production, one could expect to generate 236,000 kWh per year; if 25% superior, one could expect to generate 257,000 kWh per year (per turbine). Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 25 of 58 NW100/21 Predicted Annual Energy Generation Hub Height Average Net Average Net Average Net Diesel Fuel Average Net Average Net Diesel Fuel Average Net Average Net Diesel Fuel Wind Speed Power Output Energy Output Capacity Factor Displaced Energy Output Capacity Factor Displaced Energy Output Capacity Factor DisplacedMonth (m/s) (kW) (kWh) (%) (Gal) (kWh) (%) (Gal) (kWh) (%) (Gal)Jan 7.01 33.2 24,681 33.2 1,974 28,383 39.4 2,271 30,851 42.8 2,468Feb 7.50 35.7 24,005 35.7 1,920 27,606 38.3 2,208 30,006 41.7 2,401Mar 5.57 21.3 15,856 21.3 1,26818,234 25.3 1,459 19,820 27.5 1,586Apr 5.62 22.6 16,246 22.6 1,300 18,683 25.9 1,495 20,308 28.2 1,625May 5.27 19.3 14,333 19.3 1,14716,483 22.9 1,319 17,916 24.9 1,433Jun 5.06 17.6 12,693 17.6 1,015 14,597 20.3 1,168 15,866 22.0 1,269Jul 5.30 19.8 14,755 19.8 1,180 16,968 23.6 1,357 18,444 25.6 1,476Aug 5.99 25.0 18,591 25.0 1,487 21,380 29.7 1,710 23,239 32.3 1,859Sep 5.56 21.6 15,519 21.6 1,242 17,847 24.8 1,428 19,399 26.9 1,552Oct 5.34 20.1 14,932 20.1 1,195 17,172 23.8 1,374 18,665 25.9 1,493Nov 5.13 18.4 13,246 18.4 1,060 15,233 21.2 1,219 16,558 23.0 1,325Dec 6.31 27.4 20,419 27.4 1,63423,482 32.6 1,879 25,524 35.4 2,042Overall 5.80 23.4 205,275 23.4 16,422 236,067 26.9 18,885 256,595 29.3 20,528Displaced diesel fuel annual value: 69,794$   80,263$   87,242$   Notes:1) Diesel generator efficiency assumed to equal 12.5 kWh/gal2) Assume one‐to‐one tradeoff of wind turbine kW for diesel generator kW3) Assume diesel fuel cost of $4.25/gallon4) Turbine availability assumed to be 96% Distributed Energy NW100/21, 21 meter rotor diam., 30 m hub height, 96% availability Site 1 estimate, +15% Site 2 estimate, +25%Airport ASOS Site Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 26 of 58 Figure 9: Wind Resource in Deering 4.1.3. Noorvik Noorvik exhibits a fair wind resource for wind power development, with an annual average wind speed at 30 meters elevation of 5.7 m/s and wind power Class 2 to 4 (likely Class 3), depending on the method of calculation. Although not outstanding, this wind resource is acceptable for wind power development, especially considering the very high cost of diesel fuel in Noorvik. A wind resource assessment was conducted in Noorvik from September 2001 to September 2002 with grant funding from the Administration for American Natives (ANA) grant no. 90NK0108/01. A 30 meter NRG met tower was erected, according to the project final report, about four miles east of Noorvik along the road to the gravel pit. The final report, published by Maniilaq Association, describes the measured wind resource as “good” with an average annual wind speed at 30 meters elevation of 12.7 mph (5.7 m/s). An attempt was made to recover the original data files and reanalyze the data. This was partially successful in that data from September 25 to March 19 (with three weeks in December missing) were obtained from Maniilaq Corp., but the remaining Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 27 of 58 original files appear to be lost. However, using the recovered data plus data presented in the Maniilaq report, it was possible to construct a full year data set using features of Windographer software and Homer software (both written by Tom Lambert of Mistaya Engineering in Calgary, Alberta, Canada). The Maniilaq report states that the met tower was sited approximately four miles away from Noorvik along the road that leads to what appears to be a rock quarry located at the foot of Hotham Peak. This road is approximately six miles long so the test site therefore was about two thirds distance from Noorvik to the quarry. Note that the Noorvik utility company, Alaska Village Electric Cooperative, Inc., has stated that they would be most interested in locating wind turbines, should a project proceed, on the old runway near the village. This site is advantageous as it is near the existing power plant, easy to access in poor weather, and is situated perpendicular to the midpoint of the new airport, which presumably will alleviate concerns FAA might have regarding erecting wind turbines under the runway landing and departure routes. The annual average wind speed at the 30 meter level is 5.7 m/s, by itself representative of a high Class 2 to low Class 3 wind resource. Because the recovered data files were incomplete, the monthly and annual wind data was taken from summary data presented in the Maniilaq report. This included monthly average winds measured by the two installed anemometers – one at 100 ft (30 meters) elevation and the other at 75 ft (23 meters). Then, by extracting certain statistical information from the five months of recovered data – Weibull K value, auto correction factor, diurnal pattern strength, and hour of peak wind – a virtual annual wind data set was created using statistical estimates of hourly wind speed averages. This annual data set is limiting in many respects compared to the five months of recovered data – there is no wind direction information for instance and one must rely on the Homer software to create a virtual annual wind profile – but it allows one to estimate turbine performance for an entire year without biasing the estimate with a short data set. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 28 of 58 Hub Height Time At Time At Average Net Average Net Average Net Wind Speed Zero Output Rated Output Power Output Energy Output Capacity Factor Month (m/s) (%) (%) (kW) (kWh) (%) Jan 4.98 20.8 1.2 18.6 13,875 18.6 Feb 8.27 10.9 10.0 40.4 27,153 40.4 Mar 7.24 13.4 6.2 33.7 25,036 33.7 Apr 6.15 15.9 3.5 27.0 19,445 27.0 May 6.41 14.7 4.5 28.8 21,415 28.8 Jun 4.48 23.0 0.1 15.1 10,837 15.1 Jul 3.94 27.6 0.0 11.2 8,338 11.2 Aug 4.66 22.7 0.7 16.4 12,172 16.4 Sep 5.71 17.5 2.5 24.0 17,276 24.0 Oct 5.18 19.7 1.2 20.1 14,983 20.1 Nov 5.87 16.8 2.4 24.9 17,941 24.9 Dec 3.98 27.6 0.1 11.3 8,377 11.3 Annual 5.55 19.3 2.6 22.5 196,808 22.5 As one can see, an average annual net energy output of 197,000 kWh per year at a net capacity factor of 22.5% is predicted for the NW100/21. Using a diesel generator fuel efficiency of 12.5 kWh/gal equates to an avoided fuel usage of 15,750 gallons/year. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 29 of 58 With a fuel cost of $4.25 per gallon, the savings would be $67,000 per year for each turbine installed in Noorvik. A Noorvik installation of three NW100/21 turbines would save the community $201,000 of fuel cost per year. The average wind penetration would be: 0.22*100 kW*3 turbines*8760 hr/2,008,285 kWh (2007 data) = 0.29. Figure 10: Wind Resource in Noorvik Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 30 of 58 4.2. Existing Energy System 4.2.1. Basic Configuration of Existing Energy System 4.2.1.1. Buckland Buckland, a community of 457 people, is about 75 miles southeast of Kotzebue. The City of Buckland currently provides power to the community with a 650 kW diesel power plant. This consists of : o Caterpillar 3456 (455 kW) o Caterpillar 3456 (455 kW) o Caterpillar 3456 (175 kW) The facility, operated by the city under contract to the Kotzebue Electric Association, generated 1,423,267 kWh total in Buckland during fiscal year 2007. During the same period of time, the community imported 118,708 gallons of fuel. The overall plant efficiency is 13.8 kWh / gallon. The peak load is 396 kW and the average load is 251 kW. In September 2008, the cost per gallon of diesel was $4.79. The Alaska Energy Authority (AEA) upgraded the bulk fuel storage, power house, and associated equipment in Buckland in 2007. The power houses have new switch gear and are fully automated with paralleling capabilities. 4.2.1.2. Deering Deering, a community of 131 people, is 57 miles south west of Kotzebue. The Ipnatchiaq Electric Company currently provides power to the community of Deering, with a 453 kW diesel power plant. This consists of: o Cummins (170 kW) o Cummins (170 kW) o John Deere (100 kW) o John Deere (125 kW) The facility generated 709,559 kWh in Buckland during fiscal year 2007 and consumed 62,878 gallons of fuel for power generation. The diesel fuel used for power generation is shipped to Deering and Buckland from Kotzebue on the spring and fall barges owned by Crowely Maritime. As in Buckland, the Alaska Energy Authority (AEA) upgraded the bulk fuel storage, power house, and associated equipment in Deering in 2000. The Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 31 of 58 powerhouses have new switch gear and are fully automated with paralleling capabilities. 4.2.1.3. Noorvik Noorvik, a community of 636 people, is 45 miles east of Kotzebue. The Alaska Village Electric Cooperative currently provides power to the community of Noorvik with an 1163 kW diesel power plant. This consists of: o Detroit Diesel 60 (314 kW) o Cummins kTA 1964 (499kW) o MTU 12V2000 (756kW) The utility generated 1,991,566 kWh during fiscal year 2006 which consumed 149,669 gallons of fuel for power generation. The overall plant efficiency is 13.8 kWh / gallon. The peak load is 474kW and the average load 226 kW. The cost per gallon of diesel in September 2008 was $5.10. The community of Noorvik will need assessment and review of its control system in order to integrate wind into the system. 4.3. Proposed System 4.3.1. System Design 4.3.1.1. Rationale for a Wind Diesel System The Northwest Arctic Borough, including Kotzebue Electric Association (KEA) and Alaska Village Electric Cooperative (AVEC), has been a long-time leader in developing, designing, building, and operating wind-diesel hybrid systems in remote locations in rural Alaska and the NWAB will build upon the area’s collective competencies and experience. Based on assessments of energy resources in these communities the NWAB believes that a medium to high penetration wind-diesel hybrid system is a desirable option and is technically feasible for the targeted communities. 4.3.1.2. Description of Technology The Northwind100 combines best-in-class technologies to deliver high performance and long term reliability in a 100 kW turbine that is at once leading edge and proven. The turbine’s performance and reliability can be attributed to three main technology advances: • Gearless design that dramatically reduces part counts and offers a package that is simple and rugged. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 32 of 58 • Permanent magnet power generator which is highly efficient, dependable, and eliminates the need for messy power hydraulics. It provides high energy capture to maximize benefits of available wind. • Advanced power electronics system which was designed by the Northern team and optimized specifically for wind turbine operation. The system is inverter coupled and can perform AC-DC-AC conversion with a perfect sine wave output 4.3.1.3. Rationale for Selecting Northwind100: Together, these advances equate to excellent power production and low lifetime O&M costs, and thus lower life cycle costs. A critical mass of installed NW 100 turbines in Alaska and the Yukon is occurring which will enable improved O&M over its lifecycle. The Northwind100 wind turbine was designed in partnership with NASA, NREL and NSF to provide reliable, cost-effective and efficient power in remote and extreme weather environments. Northern Power Systems, a subsidiary of DES, makes the Northwind100 technology commercially available in Alaska. Over time, Northern’s focus on continuous improvement has resulted in efficiency gains and a reduction in the effort required for turbine installation and service. Every turbine comes standard with one concurrent user license (CUL) of Northern’s proprietary and web-based SmartView software. Smartview gives turbine owners a view of their turbine’s real-time and historical performance – as well as supervisory controls - from a desktop anywhere in the world. Also standard is a 2-year parts only warranty (extended warranties available). 4.3.2. Land Ownership The land proposed for use in this project consists of sites in Buckland, Deering, and Noorvik in the NANA region of NW Alaska. All sites are owned by NANA Regional Corporation, NRC, and NRC has provided these sites as an in-kind resource. The letter of commitment is contained previously in the proposal. 4.3.3. Permits After reviewing the land and project with technical advisors and representatives of government agencies responsible for permitting, NANA Pacific and the NWAB have concluded that NEPA, IMDA, and other permits are not necessary. In addition, while no navigable air issues were identified, FAA non-objection is required. FAA Form 7460-1 will be filed for all three communities. Communication will continue with relevant agencies to address and mitigate their concerns as additional project information becomes available or if operating assumptions change. As needed, the project team will prepare a permit schedule denoting critical permitting milestones and the estimated time to complete the permitting process. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 33 of 58 Potential regulatory agencies could include the NWAB, US Fish and Wildlife Service, and the Coastal Zone Management Program. 4.3.4. Environmental Environmental benefits and impacts of the project, based on reduction of hydrocarbon use, include reduced potential for fuel spills/contamination episodes in transport, storage, or use (thus protecting vital water and subsistence food sources), improved air quality, decreased contribution to global climate change from fossil fuel use, decreased coastal erosion due to climate change. NANA Pacific has undertaken a preliminary environmental survey and review of the proposed sites with interested parties2 and found no complaints/issues. A review of endangered species through the U.S. Fish and Wildlife Service (USFWS) identified some avian species concerns; however mitigation measures, including ‘bird-diverters’ and ‘guy-guards’ installed on the turbines will minimize the risk of avian collisions and thus reduce likelihood of harm to threatened, endangered, or migratory species. 4.3.4.1. Environmental Checklist-Completed by NANA Pacific Pre-Existing Contamination Buckland, Deering, and Noorvik: Based on consultation with landowner NANA Regional Corporation, there is no pre-existing contamination at the project site. Asbestos Buckland, Deering, and Noorvik: No existing piping or facility will be disturbed; therefore no asbestos will be disturbed or removed as part of this project. Navigable Air Space Buckland: The project site is more than 4 miles from the Buckland airport, and should not impact navigable air space, and a FAA Form 7460-1 will be submitted. Deering: The project site is more than 1 mile from the Deering airport, and should not impact navigable air space, and a FAA Form 7460-1 will been submitted. Noorvik: The project site is more than 1 mile from the Noorvik airport at a direction that is perpendicular to the runway, and should not impact navigable air space in any way. However a FAA Form 7460-1 will been submitted. 2 It is assumed that the anemometer site will serve as a proxy site for wind turbine installation and that environmental, historical, and archaeological issues are the same. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 34 of 58 Archeological/Cultural Resources Buckland, Deering, and Noorvik: Based on consultation with NANA Regional Corp., there are no known archeological or cultural sites within or in the vicinity of the project site. Threatened/Endangered Buckland, Deering, and Noorvik: Based on consultation with the U.S. Fish and Wildlife Service, two iter bird species in the region are listed as threatened. However, mitigations measures, including ‘bird-diverters’ and ‘guy-guards’, installed on the towers should minimize the risk of avian collisions. Other Protected Species Buckland, Deering, and Noorvik: Based on consultation with the U.S. Fish and Wildlife Service, migratory birds in the region are protected by treaty. However, mitigations measures, including ‘bird-diverters’ and ‘guy-guards’, installed on the turbine should minimize the risk of avian collisions. Coastal Zones Buckland: The project site is in the watershed of the Buckland River, which drains into Kotzebue Sound (20 miles to the north). However, the tower installations should have no impact on the watershed. Deering: The project site is near shores of Kotzebue Sound, which drains into Kotzebue Sound (20 miles to the north). However, the met tower installation should have no impact on the watershed. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 35 of 58 4.4. Proposed System 4.4.1. Project Development Cost 4.4.1.1. Total anticipated project cost: $10,921,928 4.4.1.1.1. Buckland: $5,279,369 4.4.1.1.2. Deering:$2,690,191 4.4.1.1.3. Noorvik: $2,951,869 4.4.1.2. Requested grant funding: $10,758,928 4.4.1.3. Applicant matching funds: $162,500 4.4.1.4. Identification of other funding sources: The NWAB will also pursue funding through USDA’s Rural Energy Grants. 4.4.2. Wind energy financial analysis: Buckland, Deering, and Buckland Based the assumptions listed below, a pre-feasibility financial analysis of a small wind farm installation for the communities of Deering, Buckland and Noorvik was conducted using the software program RETScreen. Wind turbine installation characteristics: • Wind turbines used are 100-kW Northwind100 machines with a 30 m hub- height • Two and turbines installed in Deering (200-kW total wind capacity) • Three turbines installed in Buckland and Noorvik(300-kW total wind capacity) Installation cost assumptions (for all three communities): • Feasibility, development and engineering costs- $100,000 • Wind turbines- $250,000/turbine • Substation- $150,000 • Installation labor costs- $150,000 • Foundation- $200,000 • Misc./contingencies- $301,100 to 497,275 • Transmission line cost- $350,000/mile • Annual operations and maintenance (O&M) costs- $22,000 • Drive train replacement- $30,000 every 10 years Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 36 of 58 • Blade replacement $80,000 every 15 yrs Financial assumptions- • Electricity avoided cost (compared to diesel)- $0.20/kWh • Annual electricity cost escalation rate- 10% • Inflation rate- 2.5% • Discount rate- 7% • Project life- 25 years Deering Buckland Noorvik Average annual wind speed 7.2 m/s 6.8 m/s 5.8 m/s Wind plant capacity factor 29.1% 25.9% 18.0 % Total installed wind capacity 200-kW 300-kW 300-kW Annual wind energy generated 510 MWh 682 MWh 473 MWh Total generated in FY20073 710 MWh 1423 MWh 1992 MWh Transmission line length 1.5 miles 5 miles 0.5 mile Transmission line cost $525,000 $1,750,000 $175,000 Total installation cost $1,926,100 $3,597,275 $1,812,800 Equity payback 11.6 years 13.6 years 11.8 years Benefit-cost (B-C) ratio 1.72 1.27 1.68 Figure 11: Proposed Project Economics No. of Tur- bines kWh/Yr Equiv. Diesel Gallons FY2007 Diesel Gallons Used for Power Generation Reduction in Diesel Fuel/Yr. Cost of fuel Avoided Cost/Yr. Buckland 3 682,000 54,560 118,708 45% $4.25/Gal $231,880 Deering 2 510,000 40,800 62,878 65% $4.25/Gal $173,400 Noorvik 3 473,000 37,840 149,669 25% $4.25/Gal $160,820 Figure 12: Reduction in diesel fuel and annual avoided costs 3 Statistical Report of the Power Cost Equalization (PCE) Program, Fiscal Year 2007, Alaska Energy Authority Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 37 of 58 Application Cost Worksheet-BUCKLAND 1. Renewable Energy Source- BUCKLAND The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Wind Speed: 6.8 m/s documented (class 5 predicted) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation- BUCKLAND a) Basic configuration (if system is part of the railbelt grid, leave this section blank) i. Number of generators/boilers/other 3 ii. Rated capacity of generators/boilers/other 455 kW, 455 kW, 175 kW iii. Generator/boilers/other type Caterpillar Gen-Sets iv. Age of generators/boilers/other 2007 v. Efficiency of generators/boilers/other 13.8 kWh/gallon b) Annual O&M cost i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) i. Electricity [kWh] 1,423,267 kWh per year ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank Diesel [gal] 118,708 gallons per year Other iii. Peak Load 396 kW iv. Average Load 251 kW v. Minimum Load 106 kW vi. Efficiency 13.8 kWh/gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] n/a ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a 3. Proposed System Design-BUCKLAND a) Installed capacity 300 kW Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 38 of 58 b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 682,000 kWh/yr iii. Propane [gal or MMBtu] 4. Project Cost- BUCKLAND a) Total capital cost of new system $5,279,369 b) Development cost $0 c) Annual O&M cost of new system $22,000 d) Annual fuel cost n/a 5. Project Benefits- BUCKLAND a) Amount of fuel displaced for i. Electricity 54,560 gallons ii. Heat iii. Transportation b) Price of displaced fuel At $4.79 this is $261,342/year. c) Other economic benefits 6. Power Purchase/Sales Price- BUCKLAND a) Price for power purchase/sale n/a 7. Project Analysis- BUCKLAND a) Basic Economic Analysis Project benefit/cost ratio 1.27 Payback 13.6 years Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 39 of 58 Application Cost Worksheet-DEERING 1. Renewable Energy Source- DEERING The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Wind Resource-7.2 m/s Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation- DEERING a) Basic configuration (if system is part of the railbelt grid, leave this section blank) i. Number of generators/boilers/other 4 ii. Rated capacity of generators/boilers/other 170 kW, 170 kW, 125 kW, 100 kW iii. Generator/boilers/other type 2 Cummins and 2 John Deere iv. Age of generators/boilers/other 2002-2003 v. Efficiency of generators/boilers/other Approx 13.5 kWh/gallon b) Annual O&M cost i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) i. Electricity [kWh] 709,559 kWh per year ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank Diesel [gal] 62,878 gallons per year Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency 13.5 kW/gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] n/a ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a 3. Proposed System Design- DEERING a) Installed capacity 200 kW Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 40 of 58 b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 510,000 kWh/year iii. Propane [gal or MMBtu] 4. Project Cost- DEERING a) Total capital cost of new system $2,690,191 b) Development cost $0 c) Annual O&M cost of new system $22,000 d) Annual fuel cost n/a 5. Project Benefits- DEERING a) Amount of fuel displaced for i. Electricity 40,800 ii. Heat iii. Transportation b) Price of displaced fuel At $4.80 this is $195,840 /year. c) Other economic benefits 6. Power Purchase/Sales Price- DEERING a) Price for power purchase/sale n/a 7. Project Analysis- DEERING a) Basic Economic Analysis Project benefit/cost ratio 1.72 Payback 11.6 years Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 41 of 58 Application Cost Worksheet-NOORVIK 1. Renewable Energy Source- NOORVIK The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Wind Resource 5.8 m/s Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation- NOORVIK a) Basic configuration (if system is part of the railbelt grid, leave this section blank) i. Number of generators/boilers/other 3 ii. Rated capacity of generators/boilers/other 314 kW, 499 kW, 756 kW iii. Generator/boilers/other type Detroit Diesel, Cummins, MTU iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 13.02kWh/gallon b) Annual O&M cost i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) i. Electricity [kWh] 1,991,566 kWh per year ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank Diesel [gal] 149,669 gallons per year Other iii. Peak Load 454 kW iv. Average Load 229 kW v. Minimum Load 110 kW vi. Efficiency 13.02 kW/gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] n/a ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a 3. Proposed System Design- NOORVIK Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 42 of 58 a) Installed capacity 300 kW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] 473,000 ii. Electricity [kWh] iii. Propane [gal or MMBtu] 4. Project Cost- NOORVIK a) Total capital cost of new system $1,991,941 b) Development cost $0 c) Annual O&M cost of new system $22,000 d) Annual fuel cost n/a 5. Project Benefits- NOORVIK a) Amount of fuel displaced for i. Electricity 37,840 gallons ii. Heat iii. Transportation b) Price of displaced fuel At $5.10 / gallon this is $192,984 /year. c) Other economic benefits 6. Power Purchase/Sales Price- NOORVIK a) Price for power purchase/sale n/a 7. Project Analysis- NOORVIK a) Basic Economic Analysis Project benefit/cost ratio 1.68 Payback 11.8 years Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 43 of 58 4.4.3. Business Plan The NWAB will take advantage of the existing hub and spoke concept for its wind-diesel operations and maintenance plan. The NWAB is home to Alaska’s wind-diesel industry leaders Kotzebue Electric Association and Alaska Village Electric Cooperative. The selected technology is already in use by these utility providers and their knowledge will be relied upon for operations and maintenance on either an ownership basis or contractual arrangement. Using templates created by the Alaska Department of Commerce and Economic Development, a business and operations plan will be developed that delineates operations and maintenance services to Deering and Buckland; AVEC is the utility provider for Noorvik. The operations and maintenance plan will utilize the standard protocols of AVEC and KEA as adapted for the business process in the targeted communities. Northern Power has developed operations and maintenance manuals for the Northwind100 which will serve as a baseline document. The NWAB will also send local operators to Northern Power’s in-depth training program, as has been done in other Alaskan communities. This training enables the local operator to have detailed discussions with many of the lead engineers, programmers, and operations personnel. This will be done before final installation. During final commissioning of the wind turbines, a manufacturer’s representative will be on-site to review and refine operating procedures. 4.4.4. Analysis and Recommendations According to the Alaska Rural Energy Plan, key parameters that drive the economic assessment and viability of wind-diesel hybrid systems in Alaska include the abundance of usable wind, price of displaced diesel fuel, installed capital cost of the wind-diesel system components, and the economic value of potentially delayed/avoided costs. The economic analysis used the above parameters and evaluated them using the Benefit-Cost ratio methodology as outlined in the Alaska Rural Energy Plan. These results were stated in the above cost worksheets. While this is not a heating application there are heat-related benefits that are likely to result from the proposed wind-diesel hybrid system. While the primary purpose of the wind-diesel hybrid system will be to generate electric power for existing electric loads, as a side benefit electrical resistance heaters will be powered by excess wind-generated electricity. These “dump loads,” can be located in the powerhouse or other community buildings (such as the school), for either space or water heating. Such systems can augment other forms of waste- heat recovery or co-generation involving each community’s diesel-powered generators. In addition, dump loads offer a convenient way for the power system to absorb sudden increases in wind generation output without passing power surges onto the community power grid, shunting electricity that would otherwise go unused while improving overall system reliability. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 44 of 58 5. Project Benefit 5.1.1. Environmental Benefits Environmental benefits and impacts of the project, based on reduction of hydrocarbon use, include reduced potential for fuel spills/contamination episodes in transport, storage, or use (thus protecting vital water and subsistence food sources), improved air quality, decreased contribution to global climate change from fossil fuel use, decreased coastal erosion due to climate change. 5.1.2. Financial Benefits The avoided costs in each community for 2008 would be: Buckland: $261,342 Deering: $195,840 Noorvik: $192,984 However, the cost of diesel has been increasing exponentially and the future avoided costs will be much greater. 5.1.3. Non-Income Benefits Faced with the challenges of high costs, limited local employment options and the need to support their families, rural Alaskans are being faced with the choice of leaving village life behind in order to relocate to larger cities in search of employment and affordable living. In such small communities, each household is important to the well-being of the entire community. With more affordable energy available in the villages, more of our region’s households will be able to afford to stay in their communities, promoting community stability and wellness and helping to stem the tide of rural migration. The proposed wind generation infrastructure will help stabilize energy costs, providing long-term socio-economic benefits to villages. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 45 of 58 6. Grant Budget The total project cost for the Wind Diesel Project in Buckland, Deering, and Noorvik is $9,961,501, of which $9,799,001 is requested in grant funds. The remaining $162,500 will be matched in-kind by NANA Regional Corporation. The total cost for preliminary design and initial construction is $216,258. This sum includes the review of existing data and the final design, construction plan, O& M plan, and the business plan submittal. The total cost for the $9,745,243. Broken down for each village the total project costs are: • Buckland: $5,279,369 • Deering: $2,690,191 • Noorvik: $2,951,869 This can be broken down further. The capital cost and shipping of the 7 Northwind 100s is $3,254,400. The cost of the foundations for materials and shipping is $2,488,000. The next significant cost is the transmission lines for Buckland and Deering. Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 46 of 58 BUDGET INFORMATION‐NoorvikBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other Funds TOTALS1 Northwind 100 Nacelle Turbine & Tower $1,236,900 $1,236,9002 Foundation Costs $1,240,890 $1,240,8903 Shipping $386,232 $386,2324 Functional Check Out & Commissioning $10,973 $10,9735 Spare Parts Set $4,788 $4,7886 Transmission $0 $07 Preliminary Construction $17,886 $50,000 $4,200 $72,086$0 $2,897,669 $50,000 $4,200 $0$2,951,869Milestone # or Task #BUDGET CATAGORIES:1234567TOTALSDirect Labor and Benefits $8,250 $54,200 $62,450Travel, Meals, or Per Diem$0Equipment $930,000 $933,000 $290,400 $3,600 $2,157,000Supplies$0Contractual Services $139,500 $139,950 $43,560 $1,238 $540 $8,130 $332,918Construction Services $167,400 $167,940 $52,272 $1,485 $648 $9,756 $399,501Other Direct Costs$0TOTAL DIRECT CHARGES $1,236,900 $1,240,890 $386,232 $10,973 $4,788 $0 $72,086$2,951,869 Figure 13: Budget Breakdown-Noorvik Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 47 of 58 BUDGET INFORMATION‐DeeringBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other Funds TOTALS1 Northwind 100 Nacelle Turbine & Tower $824,600 $824,6002 Foundation Costs $827,260 $827,2603 Shipping $257,480 $257,4804 Functional Check Out & Commissioning $7,040 $7,0405 Spare Parts Set $3,072 $3,0726 Transmission Lines $672,000 $672,0007 Preliminary Construction $17,886 $50,000 $4,200 $72,086$0 $2,609,338 $50,000 $4,200 $0$2,663,538Milestone # or Task #BUDGET CATAGORIES:1234567TOTALSDirect Labor and Benefits $5,500 $54,200 $59,700Travel, Meals, or Per Diem$0Equipment $620,000 $622,000 $193,600 $2,400 $525,000 $1,963,000Supplies$0Contractual Services $93,000 $93,300 $29,040 $825 $360 $78,750 $8,130 $303,405Construction Services $111,600 $111,960 $34,848 $990 $432 $94,500 $9,756 $364,086Other Direct Costs$0TOTAL DIRECT CHARGES $824,600 $827,260 $257,488 $7,315 $3,192 $698,250 $72,086$2,690,191 Figure 14: Budget Breakdown-Deering Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 48 of 58 BUDGET INFORMATION‐BucklandBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other Funds TOTALS1 Northwind 100 Nacelle Turbine & Tower $1,236,900 $1,236,9002 Foundation Costs $1,240,890 $1,240,8903 Shipping $386,232 $386,2324 Functional Check Out & Commissioning $10,560 $10,5605 Spare Parts Set $4,608 $4,6086 Transmission Lines $1,750,000 $1,750,0007 Preliminary Construction $17,886 $50,000 $4,200 $72,086$0 $4,647,076 $50,000 $4,200 $0$4,701,276Milestone # or Task #BUDGET CATAGORIES:1234567TOTALSDirect Labor and Benefits $8,250 $54,200 $62,450Travel, Meals, or Per Diem$0Equipment $930,000 $933,000 $290,400 $3,600 $1,750,000 $3,907,000Supplies$0Contractual Services $139,500 $139,950 $43,560 $1,238 $540 $262,500 $8,130 $595,418Construction Services $167,400 $167,940 $52,272 $1,485 $648 $315,000 $9,756 $714,501Other Direct Costs$0TOTAL DIRECT CHARGES $1,236,900 $1,240,890 $386,232 $10,973 $4,788 $2,327,500 $72,086$5,279,369 Figure 15: Budget Breakdown - Buckland Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 49 of 58 BUDGET INFORMATION‐OverallBUDGET SUMMARY:Milestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other Funds TOTALS1 Northwind 100 Nacelle Turbine & Tower $0 $3,298,400 $0 $0 $0 $3,298,4002 Foundation Costs $0 $3,309,040 $0 $0 $0 $3,309,0403 Shippping $0 $1,029,944 $0 $0 $0 $1,029,9444 Functional Check Out & Commissioning $0 $28,573 $0 $0 $0 $28,5735 Spare Parts Set $0 $12,468 $0 $0 $0 $12,4686 Transmission Lines $0 $2,422,000 $0 $0 $0 $2,422,0007 Preliminary Construction $0 $53,658 $150,000 $12,600 $0 $216,258$0 $10,154,083 $150,000 $12,600 $0$10,316,683Milestone # or Task #BUDGET CATAGORIES:1234567TOTALSDirect Labor and Benefits $0 $0 $0 $22,000 $0 $0 $162,600 $184,600Travel, Meals, or Per Diem $0 $0 $0 $0 $0 $0 $0 $0Equipment $2,480,000 $2,488,000 $774,400 $0 $9,600 $2,275,000 $0 $8,027,000Supplies $0 $0 $0 $0 $0 $0 $0 $0Contractual Services $372,000 $373,200 $116,160 $3,300 $1,440 $341,250 $24,390 $1,231,740Construction Services $446,400 $447,840 $139,392 $3,960 $1,728 $409,500 $29,268 $1,478,088Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0TOTAL DIRECT CHARGES $3,298,400 $3,309,040 $1,029,952 $29,260 $12,768 $3,025,750 $216,258$10,921,428 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 50 of 58 7. Additional Documentation and Certification Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 51 of 58 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 52 of 58 Figure 16: Northwest Arctic Borough Resolution Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 53 of 58 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 54 of 58 Figure 17: Ipnatchiaq Electric Company Resolution Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 55 of 58 Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 56 of 58 Figure 18: City of Buckland Resolution Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 57 of 58 Figure 19: AVEC Letter of Commitment Northwest Arctic Borough Wind-Diesel Project for Buckland, Deering, and Noorvik Renewable Energy Fund Grant October 8th 2008 Page 58 of 58