Loading...
HomeMy WebLinkAboutBristol Bay Area Health Corporation Wind Project App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 12 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 12 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Bristol Bay Area Health Corporation Type of Entity: Govermental Entity Mailing Address P.O. Box 130 Dillingham, AK 99576 Physical Address 6000 Kanakanak Road Dillingham, AK 99576 Telephone 907-842-5201 Fax 907-842-9555 Email rclark@bbahc.org 1.1 APPLICANT POINT OF CONTACT Name Mark Newson Title Capital Projects Director Mailing Address P.O. Box 130 Dillingham, AK 99576 Telephone 907-842-9221 Fax 907-842-9555 Email mnewson@bbahc.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 12 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. The Bristol Bay Area Health Corporation has had a growing concern over the increase in cost to sustain our energy demands. This year alone the increase was in excess of $ 500,000 for heating oil and electricity. In the continuation of our efforts to identify and develop alternative and renewable energy resources BBAHC is seeking to develop a wind resource that is believed to surpass any other resourced identified in previous studies. Through careful examination of AEA’s resource maps, expeditions and personal interviews with people in the Bristol Bay region the following information was uncovered.  There has been a historical resource of wind power in the Dillingham and Alegnagik communities.  Several locations in the region are believed to have more than adequate wind resources.  The Bristol Bay Region desperately needs alternative energy solutions to be implemented quickly to avoid outward migrations of its community members. This project focuses on the development of 1 megawatt of wind power located in an area AEA suspects to be have a Class 7 resource. Below is a Google Map that was integrated with one of the resource maps developed by the AEA. It indicates a possible Class 7 wind resource. Community members further support this finding with comments and BBAHC staff accompanied by Nushagak staff and Choggiung Ltd’s Land Management Coordinator conducted an expedition in mid February of 2008 which revealed the area sighted below being predominantly wind swept. This was the beginning of BBACH’s consideration to develop the wind resource at Snake Mountain just south of Big Valley and Lake Alegnagik. (see below) The location is approximately 14 miles Northwest of the City of Dillingham, less than 5 miles Northeast of Manakotak, and approximately 8 miles South of Alegnagik. Due to the specific need of the development of this resource for the Healthcare organization to maintain sustainable energy cost, this project will benefit all the communities that rely on the Bristol Bay Area Health Corporation to remain ‘the only’ critical access medical facility in the Bristol Bay Region. Although the project is being proposed by a Tribal Health Organization, it has the support of the local electrical cooperative [Nushagak], Bristol Bay Native Corporation, Choggiung Ltd as well as many of the residents of Dillingham. Some of the details include the development of the wind turbines at the base of Snake Mountain Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 12 9/3/2008 and developing a three phase link between the turbines and the healthcare organizations. Much of the infrastructure work can be done during the winter months which require the lines to be developed beneath the surface of the frozen tundra that would connect the two ends. The development of the buried three phase cable would not disturb the natural terrain or wildlife that currently exists. Our project development team has tapped into the resources of TDX, Power Corp., MAP Consulting, STG Inc, and Bristol Bay Area Health Corporation as active members of our group. The development is also supported by team members that currently own the land and mineral rights for the sites being developed. 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. This project proposes funding the Design/Build development of a 1 Megawatt wind resource. 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. This project focuses on the development of 1 megawatt of wind power located in an area AEA suspects to be have a Class 7 resource. The location is approximately 14 miles Northwest of the City of Dillingham, less than 5 miles Northeast of Manakotak, and approximately 8 miles South of Alegnagik near Snake Mountain. Due to the specific need of the development of this resource for the Healthcare organization, this project will benefit all the communities that rely on the Bristol Bay Area Health Corporation to remain ‘the only’ critical access medical facility in the Bristol Bay Region. Although the project is being proposed by a Tribal Organization, it has the support of the local electrical cooperative [Nushagak] as well as many of the residents of Dillingham. Our project development team has tapped into the resources of TDX, Power Corp., MAP Consulting, STG Inc, and Bristol Bay Area Health Corporation. 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. At the request of the local electrical cooperative, the Bristol Bay Area Health Corporation proposes to establish/develop three phase power lines to the wind generation site. This development dramatically impacts the cost & dynamics of the project by nearly 45% of the total budget. The balance of the cost will be dedicated to developing the infrastructure supporting the wind turbines and integration into the hospital’s generators. A breakout of the cost is provided below: Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 12 9/3/2008 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 financial benefits of this project far surpass the balance sheet particularly in a rural Alaska community. Our studies indicate an immediate benefit of over $620,000 of electricity savings and roughly $320,000 savings in avoided fuel cost with dump loads being converted into thermal mass and distributed throughout the campus facilities. Currently, our staff is attempting to balance a budget that reflects a loss by fiscal year end 09 that could be mostly attributed to the increases in energy cost. Without addressing our escalating energy cost our organization will be forced to scale back our medical services provided to Dillingham and its surrounding communities. 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.) $ 13,100,000 2.5.2 Grant Funds Requested in this application. $ 10,100,000 2.5.3 Other Funds to be provided (Project match) $ 2,800,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 13,100,000 2.5.5 Estimated Benefit (Savings) $ 1,000,000/yr 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.) $ 20 + million* * - The expected life of this project would be 20 years. The savings in electricity and the avoided fuel cost alone would average $1 million /year that would have to be shared in increased administrative cost by the communities that rely upon the services the hospital provides. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 12 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. Management Team The Statement of Qualifications and “proven Team” documents are attached for the Project Manager - TDX TDX Power's management is a highly experienced team of accomplished power industry professionals. Led by Bruce Levy, Nick Goodman, John Lyons and Paul Wiltse, TDX has unusual depth and expertise in every facet of the power generation field. From power system design to 24 hour operations to regulatory compliance, the TDX Power management team meets every challenge every day. High quality, least cost operations and respectful customer service are not just words, they are TDX Power's promise. TDX Power has a highly skilled, multi-disciplinary team of professionals with experience in project finance and development, corporate finance, and equipment procurement and packaging. The Operations Team has over 20 years experience with emergency standby plants as well as continuously operating base load facilities in locations ranging from urban centers to the middle of the Bering Sea. 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.) See Attached… 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Milestone Start Date Date of Completion 1 Award Notification from AEA 1/5/2009 1/5/2009 2 NEPA Review 1/6/2009 7/13/2009 3 Engage in Project Procurement 1/6/2009 4/9/2009 4 Equity Partner Agreements 1/6/2009 3/9/2009 5 Final Cost Analysis 3/10/2009 4/9/2009 6 Identify Roles and Responsibilities of Stakeholders 3/10/2009 4/9/2009 7 Negotiate with IPP 1/6/2009 3/9/2009 8 Establish Site Control for Development 3/10/2009 6/11/2009 9 Approval of Final Design 6/11/2009 7/2/2009 10 RFP for Construction 7/2/2009 8/13/2009 11 Construction Phase 8/13/2009 1/13/2012 12 Site Development 8/13/2009 6/25/2010 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 12 9/3/2008 13 Infrastructure Development 6/28/2010 7/8/2011 14 Integration 7/11/2011 11/11/2011 15 Testing & Project Acceptance 11/14/2011 1/13/2012 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Resource Asset Commitment Collaborations 1 BBAHC Projects Department Oversight, Communications 100% 2 thru 9 2 MAP Consulting Network Resourcing & Strategic Planning 25% 1, 3 & 6 3 TDX Power Independent Power Producer, General Manager & Resource Coordination 75% All Resources 4 STG Inc Infrasturcture Development, Wind Turbine Erection & Logistics 75% 3 & 5 thru 7 5 Power Corp Integration with existing systems, Expandability 35% 3,4 & 6 6 Nushagak Cooperative Coordination, Expandability & Planning 25% All Resources 7 Northern Power Wind Turbine Supplier & Integration 25% 3 thru 6 8 Choggiung LTD Land Ownership 100% 1 9 BBNC Land Trust Land Ownership & Mineral Rights 100% 1 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The project communications will be organized and controlled by BBAHC. Monthly progress reports will be submitted to the General Manager and monthly project review meetings will be conducted to insure the project deliverables and stakeholder acceptance. 3.6 Project Risk Discuss potential problems and how you would address them. This project enlists the participation of a number of organizations and covers a large area. Careful planning and detail will be taken in organizing the collaborative efforts of the stakeholders and memorandums of understandings will be drafted initially as well as during the course of the project to maintain seamless progression towards project completion. Should problems or complaints surface BBAHC’s dedicated staff will insure that the issues be communicated with all parties and an expected/anticipated date of resolution assigned to that issue to maintain the momentum and continuity of the project. With a policy and plan established for addressing risk, conflicts, collateral and actual damages the project sustains a greater likelihood of survival in an environment of risk. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 12 9/3/2008 SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. See attached 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. See attached 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. See attached 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. See attached Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 12 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods See attached 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. See attached 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 See attached 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or Endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 12 9/3/2008 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 See attached 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 See attached 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 See attached 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 12 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. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. 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 See attached 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. See attached Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 12 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 Robert Clark Signature Title Chief Executive Officer Bristol Bay Area Health Corporation Date 10/8/08