HomeMy WebLinkAboutBurro Creek Hydro App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 14 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 14 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Burro Creek Holdings. LLC
Type of Entity:
Limited Liability Company
Mailing Address
Box 271
Skagway Alaska 99840
Physical Address
3rd & Alaska
Skagway, Alaska 99840
Telephone
907-983-2414
Fax
983-2415
Email
madam@aptalaska.net
1.1 APPLICANT POINT OF CONTACT
Name
Janice C. Wrentmore
Title
Owner
Mailing Address
Box 271
Skagway, Alaska 99840
Telephone
907-983-2413
Fax
907-983-2415
Email
madam@aptalaska.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
X An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If a
collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 of 14 9/3/2008
SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
Feasibility Analysis/Conceptual Design
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.
Burro Creek, formerly the Burro Creek Farms Hatchery, is an existing, operational hydro system located
on 121 acres of private land approximately one and a half miles south of Skagway on the west side of
upper Lynn Canal. A grant is requested to obtain expert analysis of the feasibility of upgrading the
existing hydro system in order to wholesale power to Alaska Power and Telephone or the City of
Skagway. Existing AP&T hydro projects supply electricity to Haines and Skagway but the communities
must still rely on diesel during certain times of the year. Also, existing hydro projects do not generate
enough power to supply the cruise lines who have expressed an interest in connecting to shore power as
a means of reducing air quality emissions.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
The overall budget requested for the Feasibility Study is $60,000. Of this, $48,000 would be state grant
money and $12,000 would be contributed by Jan Wrentmore, grantee/applicant, either in cash
contribution or in-kind contributions. The feasibility study would allow us to carefully weigh the costs and
benefits of all the options available at Burro Creek and make a recommendation to the Alaska Energy
Authority as to the best alternative. At that point, it would be possible to make an estimate of the cost of
the entire project based on that preferred alternative.
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.
Potential benefits to the Alaskan public include reduced fuel costs to residents of Haines and Skagway (or
less dependence on diesel) and improved air quality in upper Lynn Canal when and if the cruise ships
are able to hook up to shore power.
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.)
$ 60,000 Feasibility study
2.5.2 Grant Funds Requested in this application. $ 48,000
2.5.3 Other Funds to be provided (Project match) $ 12,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 60,000
2.5.5 Estimated Benefit (Savings) $
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 14 9/3/2008
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.)
To be determined
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 14 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.
Darrel Maple, consultant and former City Manager of Haines will act as project manager of the feasibility
study. John Floreske, Owner and Manager of Northern Construction, Inc. and master electrician of
Haines Alaska, will provide the technical expertise associated with hydraulic calculations and cost/design
analysis. Mr. Maple and Floreske have worked together in the past on a number of hydro development
projects including 10 mile Hydroelectric and Lutak Hydroelectric in Haines. With John’s supervision, on
the ground measurements of stream capacity and other hydrology concerns will be conducted by Jay
McClendon, Facilities Manager for the existing Burro Creek property.
Resumes for these individuals are attached.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
November ,2008
Begin 12-month stream flow monitoring and data collection.
January 2009
Begin consultant studies of design options, costs and benefits;
Identify Costs of submarine cable and connecting to the Skagway grid; identify potential impacts,
investigate permitting timelines; address agency concerns.
April 2009
Begin any field studies required by government agencies
September 2009
Finalize draft report
October 2009
Submit draft report for independent engineering review.
November 2009
Submit final report to AEA
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 14 9/3/2008
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
1. Monitor stream flow and temperature characteristics of the Creek in order to determine a timeline for
variations in flow and temperature. Determine maximum capacity of the stream; evaluate condition and
capacity of existing hydro system.
2. Identify the capacity increases associated with upgrades to the following components of the existing
system: pipeline, turbines, dam, power house location. Analyze the costs and benefits of each upgrade.
3. Assess impacts on scenic and recreational values of the area. Network with government agencies
regarding habitat, fish and wildlife concerns, additional water rights and other regulatory issues.
Investigate permitting issues and develop a permitting timeline.
4. Initiate discussions with potential customers such as the cruise lines, Alaska Power and Telephone,
and the City of Skagway regarding a possible purchase/sale agreement for power.
5. Research the expense and feasibility of submarine cable to connect to the Skagway power grid.
Estimate costs and develop recommendations as to the feasibility and cost-effectiveness of a variety of
alternatives for expansion of Burro Creek hydro infrastructure using state of the art renewable energy
technology.
6. Assess the impacts of these recommendations on the existing energy infrastructure in the community
and the public benefit that would be achieved.
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.
Resumes are attached for the key people in this study, Darrel Maple, John Floreske, Jay McClendon .
Additionally, Stan Selmer, General Manager of Alaska Power and Telephone has been extremely
supportive and helpful. Also, Bill Shattenberg, owner of Anchor Electric in Juneau has been an important
advisor for the Burro Creek Project.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Progress Report Form and the Financial Report Form/Request for Reimbursement will be submitted
on a monthly basis. These forms would provide the opportunity to regularly review the work that has
been accomplished or initiated as well as a venue to discuss any problems which may have arisen.
3.6 Project Risk
Discuss potential problems and how you would address them.
Because this is a feasibility study, I do not foresee any risks.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 14 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.
Alaska Power and Telephone Company staff have visited the Burro Creek operation and estimated the
capacity of the stream at 2 megawatts. The year-round potential of the Creek however, needs to be
determined. The community of Skagway already enjoys significant developed hydro resources but the
power company still relies on diesel fuels for part of the year. The role of Burro Creek in alleviating this
situation and/or providing power to the cruise lines will be determined by the proposed feasibility study.
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.
Currently, Skagway is served by Alaska Power and Telephone which generates power from two hydro
project, Goat Lake and Dewey Lakes. A third hydro project is scheduled to go on line this fall at Kasidaya
Creek south of Skagway. Despite our hydro resources, the community must still depend on diesel at
certain times of the year, particularly in late winter and early spring.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The existing Burro Creek Hydro is a run-of-river system and is not dependent on a lake. Historically, the
stream has running water 12 months a year and could, potentially, relieve some of the community’s
dependence on diesel during the winter months. While I do not have access to the specifics of AP&T’s
existing energy infrastructure, the study proposed in this application will provide a thorough discussion of
the impacts of Burro Creek development on existing energy resources and the feasibility of providing
power during the winter and early spring.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 14 9/3/2008
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Currently, the energy market in our immediate locale consists of the communities of Skagway and Haines.
However, there have been requests from the cruise lines to hook -up to shore power. The air pollution
associated with the large ships that dock in our port is increasingly a problem. Additionally, the
Municipality of Skagway is on record in support the Southeast Intertie.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 14 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
Alaska Power and Telephone staff estimated the capacity of Burro Creek at 2 megawatts, but it could
prove to be more or less. The optimum installed capacity will depend on a number of variables to be
evaluated in the feasibility study. The method of delivery would be approximately 1½ mile of submarine
cable connecting Burro Creek to the Skagway power grid. The cost effectiveness of this approach will
need to be determined.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The existing hydro system and the section of Burro creek which is associated with the hydro is located
entirely on the 121 acre tract owned by the grantee, Jan Wrentmore, owner of Burro Creek Holdings.
Additionally, Water Rights have been secured in the Grantee’s name. However, the existing water rights
may need to be expanded depending on the outcome of the feasibility study and the volume of water
projected for the preferred alternative.
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
Because this project would consist of upgrading an existing hydro constructed entirely on private property,
it is possible that some permitting hurdles can be avoided. One of the goals of this study is to identify all
applicable permits and develop an anticipated permitting timeline.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 14 9/3/2008
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
The impact of the existing hydro on fish and wildlife resources appears to be negligible. Burro Creek is not
a natural salmon-spawning stream and there currently is almost no return of salmon from the days when
the Hatchery was in operation. However, local wisdom indicates there may be Dolly Vardin in the upper
parts of the stream. Visual, aesthetic and wilderness values will need to be taken into consideration as the
waterfalls are spectacular and the area has scenic and recreational value.
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
The grant request for the feasibility study is $48,000 with $12,000 match to be provided by the grantee.
Overall development and construction costs will be identified in the study.
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
Operating and maintenance costs for this portion of the project (feasibility study) should be minimal: snow
removal for winter access; periodic maintenance of the dock to provide year-round access, maintenance
and monitoring of instrumentation to calculate stream flow characteristics.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 14 9/3/2008
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The potential buyers are Alaska Power and Telephone, the City of Skagway, and the cruise lines who
dock in Skagway. The feasibility study will identify the potential for power purchase/sales and rates of
return.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Please see attached Cost Worksheet Form.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 14 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.
Burro Creek has significant value as a tourist destination. Hydro development would enhance the
attraction as the public has a growing interest in alternative energy. The study proposed in this application
will evaluate the feasibility of developing hydroelectric energy as part of an overall vis itor attraction that will
enhance Skagway’s tourism in years to come. A goal of the study is to evaluate the feasibility of
connecting Burro Creek to the power grid to generate revenue from power sales.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The feasibility study should produce, in the end, a recommendation for future development work. Until all
the options are considered, it is difficult to say what the future for Burro Creek hydro is. Much depends, in
my opinion, on the outcome of the winter hydrological data that is collected during the initial phases of the
feasibility study. This will demonstrate if Burro Creek can supplement community power during the
months when it relies on diesel fuel. Also at issue, is whether or not an effort will be made in the near
future to connect cruise lines to shore power.
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
Project benefits will be determined by the preferred alternative chosen in the feasibility study. Particularly
in the case of providing clean power to cruise lines, the public would see a benefit in increased air quality.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 14 9/3/2008
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
To date, the purchase of Burro Creek in 2 005 and subsequent improvements to the lodge, dock, hydro
and helicopter pad total in excess of one million dollars in personal capital. I am requesting $48,000 in
grant money to conduct the feasibility study and am proposing $12,000 of in kind contributions to match
this grant. If for some reason, the in kind contributions are insufficient, I will contribute cash to bring the
total of the match to 20%.
Please see attached Grant Budget Worksheet.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 14 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 Janice C. Wrentmore
Signature (see signature on hard copy)
Title Owner, Burro Creek Holdings, LLC
Date October 6, 2008