Loading...
HomeMy WebLinkAboutHeat Recovery ORC Applications for Bush Alaska App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 13 9/2/2008 Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 13 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) PRECISION POWER LLC Type of Entity: FOR PROFIT COMMERCIAL COMPANY Mailing Address 200 E. COMMERCIAL DRIVE PALMER, ALASKA 99645 Physical Address 200 E. COMMERCIAL DRIVE PALMER, ALASKA 99645 Telephone 907-746-7797 Fax 907-746-7772 Email precisionpower@prepower.net 1.1 APPLICANT POINT OF CONTACT Name MR. DAVID STRICKLAND Title VICE PRESIDENT Mailing Address 200 E. COMMERCIAL DRIVE PALMER, ALASKA 99645 Telephone 907-746-7797 Fax 907-746-7772 Email dstrickland@prepower.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 13 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. The project as currently identified is in the Reconnaissance; Resource Assessment Phase. It anticipates providing new technology that would reduce the amount of fuel used to generate electricity in Bush Alaska and therefore reductions in electric generation expense. The waste heat produced in generation will be captured to produce added generation capacity helping to further reduce cost. Finally, this secondary generation which also produces waste heat will be captured and recycled for use in a controlled environment agricultural unit (CEAU). The products produced in the CEAU will create a new revenue stream, further reducing costs, provide jobs, educational opportunities, community pride, and commerce. Making use of (captured) the waste heat (exhaust and coolant heat) from existing prime power generating systems will be diverted to a geothermal waste heat turbine i.e. The Organic Rankine Cycle (ORC). The Cycle can make use of any heat source meaning optimal heat utilization. The Proposal is for “proof of concept”. Success in the Reconnaissance Stage means that we would then engineer a working prototype system designed around the use of new equipment and technology in the Feasibility Stage. Additionally, the plan would contain flexibility to incorporate current power generation infrastructure when put to practical use. 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 proposal seeks to design and make commercially available a system that utilizes renewable energy as an option to the basic rural Alaska electrical power generating system. This is multi part concept that utilizes advanced technology to improve the over-all efficiency of prime power diesel generating systems. The elements of the new system are divided into three separate parts each bringing their own value contribution. They include waste heat recovery, conversion of waste heat using the Organic Rankine Cycle in combination with Controlled Environment Agriculture, and biomass incineration. At this time Precision Power LLC is the singular participant in the project. 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. Funds needed: $300,000 for Reconnaissance Stage actions. The requested grant funds and match are described below: Task Total Grant Precision Power and Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 13 9/3/2008 Funded Economic Consultants In-Kind Match Prototype Project Definition and Pilot Locations $100,000 $80,000 $20,000 Data Gathering and Analysis $100,000 $80,000 $20,000 Final Reconnaissance Report and Business Plan $100,000 $80,000 $20,000 TOTAL $300,000 $240,000 $60,000 The Reconnaissance Study is estimated to cost $300,000. Grant funding is requested for 80 percent of the project with Precision Power providing a total of $60,000 matching funds and in- kind technical support. Precision Power anticipates that the match will be comprised of $30,000 in cash and $30,000 in in-kind labor and technical support. No other sources of contributions are anticipated. 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. Project Benefits; a. The annual fuel displacement and savings over the life of the project are projected to be substantial and have a significant impact on the economic sustainability of village communities in Bush Alaska. . b. Annual revenue contributions from energy sales, tax credits, green tags, the sale of commercial output from the CEAU, and other incentives that will be gained from using the prototype system will vary by location. However, we believe that there will be significant annual additional revenue levels which the proposal will quantify in the Reconnaissance Stage. c. The concept behind the proposal for the prototype system assumes that there will be economic and non-economic social benefits. This will be further identified during the Reconnaissance Stage. 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.) $7,000,000-$10,000,000 2.5.2 Grant Funds Requested in this application. $ 300,000 2.5.3 Other Funds to be provided (Project match) $ 60,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 300,000 2.5.5 Estimated Benefit (Savings) $ to be determined by Reconnaissance Study. 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.) $ The project has the potential to provide lower cost and non-diesel electric generation to Bush Alaska as well as create a new enterprise for economic Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 13 9/3/2008 development in these remote village. WHERE IS SECTION 3?? 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. Precision Power LLC was established December 1996 and is wholly owned by Peak Oilfield Service Company. Located at 200 E Commercial Drive Palmer, Alaska we are the sole occupant of 14,800 square feet of office and shop space including 5 acres of yard space, a portion of which is covered. Precision Power LLC is a licensed general and electrical contracting company complete with registered electrical engineering, electrical administrators, mechanical, administrators, electricians, instrument technicians, certified mechanics and welders. Precision Power has over 200 years of combined experience providing prime power to Alaska, Canada and the Russian far east, working in engineering, manufacture, sales and service of power generation equipment. This includes project history with Cummins-Onan Northwest, N.C. Machinery, Caterpillar, Pacific Power Products, John Deere engines, New Horizons Telecom, Kinetic Energy Systems, Woodward Governor Company, AVEC and Alaska Diesel Electric. Precision Power is the only company in the State of Alaska and one of the few in the United States that is certified to build custom power generation modules and open units that are listed to UL 2200 Standards. 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.) Start December 2008 – Grant Award January 2009 – March 2009 – Data gathering and analysis March 31, 2009 – Final Reconnaissance Report and Business Plan 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Milestone 1 – Prototype Project Definition and Pilot Locations Identified – January 2009 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 13 9/3/2008 Milestone 2 – Data gathering and analysis complete – March 2009 Milestone 3 – Final Reconnaissance Report and Business Plan Complete – March 2009 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. A project manager for Precision Power will report regularly to the AEA review team on the progress and findings of the reconnaissance project. AEA will have the opportunity to review on the draft reconnaissance report and will receive a copy of the final report. 3.6 Project Risk Discuss potential problems and how you would address them. Specific project risks will be identified during the reconnaissance study, however, some of the risks that may arise include:  Technical risk – while we have confidence that the Organic Rankine Cycle and Controlled Agriculture Environment Unit will work in Bush Alaska, there could be some specific factors such as average outside temperatures, staff training, or accessibility of spare parts that could affect the ultimate efficiency of the proposed system. These factors will be identified and analyzed during the reconnaissance study.  Economic risk – making the energy technology affordable and sustainable at the relatively small scale of village power.  Social risk – the proposed project will be located in Rural Alaskan villages and will require community participation and acceptance for the full benefit of the CEAU enterprise to be realized. We will work closely with the pilot communities to understand and overcome social and cultural barriers that may arise around the proposed project. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 13 9/3/2008 available for the market to be served by your project. The potential energy resource as assumed in the basic application is waste heat that has been produced primarily from the generation of electricity. However, due to the versatility of design, in all applications, other sources of heat which are deemed practical can easily be incorporated. Such as the incineration of Bio-Mass, community waste products and geothermal were available. 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. The basic energy system (primary power source) of most remote Alaska villages is a diesel fueled generator. Depending on need, a village could be operating with one to multiple generators in various conditions, sizes and efficiency profiles. 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 predominant energy source to generate electricity in Bush Alaska is diesel fuel. The successful implementation of this project would increase fuel efficiency by using improved waste heat recovery methods therefore reducing overall diesel fuel consumption. The various towns and villages found in rural Alaska generate their electrical power needs almost exclusively with diesel fuel powered generators. The current run up in the price of fuel has had significant negative impact on budgets in the Bush. The Company believes that a single “silver bullet” solution to cost reduction and conservation is unlikely and that most likely solutions will come from multiple ideas customized for population, geographic and environmental conditions. This proposal seeks to design and make commercially available a new concept in the use of renewable energy, increasing the efficiency of the basic rural village power system and providing a new and unique income stream. From a budgetary standpoint, it assumes new turnkey application. However, retrofitting current physical plant components already in place may be possible. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. It has been said that there is no “silver bullet” single solution to reduce the cost of energy generation in rural Alaska. Up to now, the process has been simple. From one to multiple generators depending on the size of the community, operate daily consuming gallons of diesel fuel Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 13 9/3/2008 costing upwards of $15.00 per gallon. Most of these units have been in operation for some time and limited conservation measures have been engineered into the system. Precision Power also believes that a single “silver bullet” solution to cost reduction and conservation is unlikely and that solutions will come from multiple strategies customized for population, geographic and environmental conditions. This proposal seeks to design and make commercially available a new concept in the use of renewable energy, increasing the efficiency of the basic rural village power system and providing a new and unique income stream. From a budgetary standpoint, it assumes new turnkey application. However, retrofitting current physical plant components already in place is also possible. 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 Proposed System Design: a. The proposal defines “renewable energy” as the energy recovered from waste heat (engine exhaust and cooling fluids) produced using diesel fuel powered generating systems that is not recovered for reuse. The project prototype will be built in Palmer Alaska but with the exception to price per gallon of fuel, the system will duplicate the renewable energy technology whatever the final instillation location. b. The proposal assumes the prototype is modular in design in order to fit the individual community’s needs. In addition, accessory pieces such as the biomass furnace can be included or excluded. The intention is to provide the highest degree of fuel efficiency, retarding fuel consumption per kW hour and maximizing the commercial product output from the CEAU. c. The optimum install capacity will be what is sized to meet need in order to provide the highest degree of fuel efficiency, retarding fuel consumption per kilo-watt hour (kWh) and maximizing the commercial product output from the CEAU. d. The amount of annual generation of the prototype will be approximately 2,000 kW. e. The Proposal assumes that the prototype will integrate a portion of the system within a current diesel system, substitute one for one with an existing location system of the same output or add to the output capacity of a system. Cost savings from diesel fuel will support the operation and maintenance of the proposed system. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 13 9/3/2008 This is multi part concept that utilizes advanced proprietary technology to improve the efficiency of the primary generation unit(s) diesel consumption. The elements of the new system are divided into three separate parts each bringing their own value contribution. Part I: Two separate technologies are incorporated at the generator(s) to aide in greater fuel efficiency; a Rentar tm Pre-Combustion Catalyst Unit and a supplemental hydrogen injection system. The investment made to incorporate these two components is expected to have quick payback window (less than a Year) Part II: The waste heat produced by the power generator(s) is considered a byproduct and is produced from two sources; the engine cooling system and the engine exhaust. We capture both of these heat sources and direct them to another process unit designed to capitalize on the benefits of the Organic Rankine Cycle tm (ORC). A scientific process, the ORC makes use of a tube and shell heat exchanger and a turbine tied to its own generator. Waste heat propels the turbine which in turn produces additional electricity. At this point in the system a Bio-Mass furnace can also be inserted. The byproduct produced from the ORC process is hot liquid and/or hot gas, which must be condensed prior to returning to the ORC generator(s). Part III: This step has various “renewable energy” dynamic impacts. Condensing the hot liquid/gas from the ORC process (Part II) becomes a new energy source for a “Controlled Environment Agriculture” unit (CEAU). The CEAU may or may not be hermetic in nature and comprised of a free standing panel build building. It will be designed and scaled to make use of the condensable heat available from the ORC process to maintain a temperature controlled environment. The process of controlling the CEAU environment results in a heat exchange from the organic medium of the ORC process which is then returned to the ORC generator engine for reuse. The output from the CEAU is envisioned to produce select plant crops for village use and value dense crops such as medicinal and pharmaceutical herbs for commercial sale. 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. Land Ownership: The proposal assumes that the prototype system will be designed and constructed on Precision Power LLC owned property or on property that Precision Power LLC holds a valid land lease or other required permission for long-term use of project location. 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 Permits: a. The proposal assumes that the prototype can be designed and constructed without any new permits. b. The proposal for the prototype does not anticipate any regulatory barriers. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 13 9/3/2008 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 Environmental: The proposal for the design and construction of the prototype system does not anticipate any impacts to the environment. If there are any environmental impacts associated with the prototype system they will be mitigated to the fullest extent possible and emissions will meet required State and local requirements. 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 Proposed System Costs: a. The Proposal in the Reconnaissance Phase has a budget of $300,000. b. For the Reconnaissance Phase there is no anticipated O&M or fuel cost. c. There is no debt financing anticipated in the Reconnaissance Stage. 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 Proposed System Costs: d. The Proposal in the Reconnaissance Phase assumes a budget of $300,000. e. For the Reconnaissance Phase there is no anticipated O&M or fuel cost. Annual O&M costs for the new system the proposal estimates to be slightly more than the existing activity. However, there is a commercial component involved in the proposal that generates added revenue that can offset most if not all of the additional cost, The schedule for Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 13 9/3/2008 O&M will vary by installation but should be consistent with current practice. 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 Energy Purchase/Sale: a. The proposal prototype system is primarily intended for use in rural Alaska b. The potential energy purchase and sales rates will be identified during the Reconnaissance Stage. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See attached. 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. This information will be developed in the Reconnaissance Stage,. Some of the factors supporting the sustainability of the proposed project include 1) The high cost of diesel generation in the Bush Alaska – the value of the fuel oil or diesel fuel displaced by the proposed renewable energy system will support development of alternative generation resources. The 2007 Power Cost Equalization statistics show that fuel oil costs for power generation increased by 15 percent. Diesel fuel costs are also increasing. These high fuel costs will support the market for alternative energy projects in Bush Alaska. 2) The need for diversification of energy systems and employment – Bush Alaska suffers from dependence on single energy source (diesel or fuel oil) to generate power and provide heat. There is a need to diversify energy sources to provide these village with alternative sources of energy that will increase reliability of energy systems (especially if there is fuel supply disruption) and reduce costs by providing alternative energy sources that can be leveraged in fuel or energy supply negotiations. 3) The need for economic development to sustain village life – The future of village life in Bush Alaska is threatened by high energy costs and few economic opportunities. Rural Alaska needs new sources of income and economic opportunity to support a sustainable and vibrant village life. The proposed project with the CEAU will provide a new economic opportunity in boutique or high value agriculture that will diversify village income and economic opportunity. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. Analysis and Recommendations: a. The basic economic analysis of alternatives to the prototype system will be studied in the Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 13 9/3/2008 Reconnaissance Stage. b. During the Reconnaissance Stage other project development work may be identified. 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 Fuel savings and revenue will be estimated during the reconnaissance study. However, the design of the mechanical system will reduce fuel usage in rural communities and provide a “renewable energy” source for a secondary income stream with the incorporation of the CEAU. But in addition to the straight economic benefit the system provides, there are other social benefits as well. The addition of the CEAU will have the ability to provide jobs, an educational component, a substantial reduction of food costs, a foundation for self-sufficiency and a source of community pride by improved self reliance. 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 The Reconnaissance Study is estimated to cost $300,000. Grant funding is requested for 80 percent of the project with Precision Power providing a total of $60,000 matching funds and in- kind technical support. Precision Power anticipates that the match will be comprised of $30,000 in cash and $30,000 in in-kind labor and technical support. Task Total Grant Funded Precision Power and Economic Consultants In-Kind Match Project Definition and Pilot Locations $100,000 $80,000 $20,000 Data Gathering and Analysis $100,000 $80,000 $20,000 Final Reconnaissance Report and Business Plan $100,000 $80,000 $20,000 TOTAL $300,000 $240,000 $60,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 13 9/3/2008 This project is estimated to cost $7,000,000 to $10,000,000 in granted funds through the final construction and implementation phase. Precision Power is prepared to invest an additional $350,000 to $500,000 comprised of direct, indirect, and in kind contributions to the entire project. Currently over $100,000 real dollars have been invested in research for this project. These costs have been paid from personal and company funds. 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 Mr. David Strickland Signature Title Vice President Date October 8, 2008