HomeMy WebLinkAboutRenewable Energy Resources for Cold Bay, False Pass, and Nelson Lagoon App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 12 9/2/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
ALEUTIANS EAST BOROUGH
Type of Entity:
LOCAL GOVERNMENT
Mailing Address
3380 C Street, Suite 205
Anchorage, AK 99503
Physical Address
same
Telephone
907-274-7555
Fax
907-276-7569
Email
Sboyette@aeboro.org
1.1 APPLICANT POINT OF CONTACT
Name
Robert Juettner
Title
Borough Administrator
Mailing Address
3380 C Street, Suite 205
Anchorage, AK 99503
Telephone
907-274-7555
Fax
907-276-7569
Email
rjuettner@aeboro.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
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If a
collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 12 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 Aleutians East Borough is applying for funding to conduct a Reconnaissance Report assessing
possible renewable energy resources-- wind, hydro, current, tidal and waste heat recovery-- for the
small and isolated communities of Cold Bay, False Pass and Nelson Lagoon.
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.
The Aleutians East Borough (AEB) stretches from the tip of the Alaska Peninsula to the
easternmost Aleutian Islands. This isolated region is bordered on one side by the North Pacific
Ocean and the other by the Bering Sea. It has been home to generations of Aleut families since the
Second Ice Age in Akutan, False Pass, King Cove, Nelson Lagoon, and Sand Point. Cold Bay was
developed during World War II. In this region, called “the birthplace of the winds”, renewable
energy resources abound -- not only wind power, but also hydro, geo-thermal, current and tidal.
Some waste heat recovery opportunities also exist. The larger AEB communities of Akutan, King
Cove and Sand Point, which have personnel resources and comparatively healthy city budgets, have
alternative energy projects operating or on the drawing board. This project requests funding to
conduct a renewable energy reconnaissance report for the smaller (populations less than 100)
communities of Cold Bay, False Pass and Nelson Lagoon which require assistance to decrease their
energy costs and reduce their dependence on diesel fuel. A reconnaissance report will summarize
the assessment and findings. This project will be administered and managed by the AEB and will
be conducted by a consultant chosen by the AEB.
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 estimated cost of this project is $40,000 including $10,000 of in-kind work by Borough staff.
We are requesting $25,000 from the Alaska Energy Authority’s Renewable Energy Fund and we
are providing $5,000 in a cash match. The project will be managed and the grant administered by
Borough staff.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 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.
At a minimum, our Reconnaissance Report will include the following tasks:
Gather all resource studies that now exist on renewable energy projects within our
Borough’s boundaries.
Research and list other studies that may benefit the smaller communities (with methods and
costs).
Describe existing power and heating systems in each of the communities, including detailed
load information and other information necessary to continue into feasibility and
conceptual design phase.
Describe diesel fuel deliveries and, if appropriate, examine other shipping options.
Describe renewable energy technologies available specific to each community.
Ascertain and document the required operations and maintenance of renewable resource
projects.
Ascertain and document the community and utility support and interest in specific
renewable resource development.
Describe each of the proposed systems’ costs and benefits.
Quantify the potential energy market and sales rates in each community.
Identify land (with landowners) needed for each of the proposed systems.
Identify anticipated or required permits with timelines and conduct initial environmental
screening for each project with potential barriers or problems noted.
Provide an economic analysis of alternatives for each community and make
recommendations for future project development work, in rank order per community.
With the completion of this reconnaissance report, Cold Bay, False Pass and Nelson Lagoon will be
able to proceed into the Feasibility and Conceptual Design Phase. The report will move each
community closer to realizing decreased energy costs and reduced dependence on diesel fuel for
power generation.
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.)
$ 40,000
2.5.2 Grant Funds Requested in this application. $ 25,000
2.5.3 Other Funds to be provided (Project match) $ 15,000 ($5,000 cash)
($10,000 in-kind)
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 40,000
2.5.5 Estimated Benefit (Savings) $ unknown
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.)
$ unknown
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 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.
The project manager will be Sharon Boyette, Community Development Director, under the
direction of Robert Juettner, AEB Administrator. Finances and financial paperwork will be
handled by the Borough’s Finance Director, Roxann Newman. We do not expect project
management assistance with be required from the AEA or another government entity.
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.)
TASK RESPONSIBITY
Month One
Write and advertise the request for
proposals AEB Com. Development Director
Month Two Review proposals and select contractor AEB Administrator & Others
Month Two Contractor begins work Contractor
Month Four First Progress Report Due Contractor
Month Six Second Progress Report Due Contractor
Month Eight Draft Report Contractor
Month Eight AEB and Cities/Utilities comments Due AEB Com. Development Director
Month Nine Final Report Due Contractor
Month Nine Project Close-out AEB Com. Development Director
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
The key tasks are listed above but include a contract in place by the end of the second month of the
project with a respected consultant in the field of alternative, renewable energy resources. We
expect to have a final report within nine months of our grant award in order for the City of Cold
Bay, the City of False Pass and the Nelson Lagoon Village Council to move their selected projects
forward into the feasibility and conceptual design phase.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 12 9/3/2008
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.
The AEB Community Development Director will write and advertise in the Anchorage Daily News
a request for proposals (RFP) for a Renewable Energy Reconnaissance Report for Cold Bay, False
Pass and Nelson Lagoon. We hope to hire a respected consultant within the field based on a
proposal that addresses at least the minimum work described in Section 2.4 within the schedule
described in Section 3.2.
The selection process will be described in further detail within the RFP but will include points for
the contractor’s demonstrated understanding the technical problems, technological solutions and
the understanding of the unique problems of AEB’s small communities. Other criteria will include
the contractor’s specific work plan and schedule. The most important criteria will be the
experience and knowledge of the contractor and associated personnel with regard to energy-related
planning, environmental issues and permitting. We will assign points to the proposers’ extent of
experience working on energy issues in other small, remote communities. The review committee
will also look at the proposers’ detailed cost proposal which must be within the $30,000 budget and
be a reasonable representation of the work plan.
Resumes of AEB project personnel -- Administrator, Community Development Director and
Finance Director -- are attached.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Community Development Director will communicate with the Alaska Energy Authority
through monthly progress and financial reports by email to the Authority’s Project Manager. The
will summarize the progress made on grant tasks during the month and identify any difficulties in
meeting goals and deadlines.
3.6 Project Risk
Discuss potential problems and how you would address them.
AEB staff has some experience in working with permitting agencies on past projects and
understands that Cold Bay, False Pass and Nelson Lagoon have special needs and considerations
regarding wildlife, particularly birds. We will require our contractor to have demonstrated
excellent experience, knowledge and negotiating skills in this area and pay strict attention to the
U.S. Fish and Wildlife Service’s permitting requirements and history in our region.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 12 9/3/2008
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.
The Aleutians East Borough is very fortunate to have great renewable energy resources.
The U.S. Department of Energy classifies the region as a Class Seven wind resource. Wind power,
we believe, is the most likely renewable resource for Cold Bay, False Pass and Nelson Lagoon. A
met tower has been requested for Cold Bay by its electric utility, G and K. In False Pass, one year of
data already exists from a met tower there. This fall, Aleutian Pribilof Island Community
Development Association installed a small wind turbine in False Pass which will power the
community center and one in Nelson Lagoon to power the community’s storage building near the
public dock. Winds in the Aleutians can be very turbulent and high gusts make this renewable
resource a mixed blessing. Migratory birds, especially the endangered Steller’s Eider, make
permitting issues very tricky.
The region sits on what is known as the “Ring of Fire”, offering world-class geo-thermal resources.
The U.S. Department of Energy considers North America’s greatest geothermal resource potential
to be located in the Aleutians. However, the large cost of geo-thermal projects may outweigh the
benefit for small village populations.
Hydroelectric power is already in use in two of the Borough’s larger communities and potential
hydro resources have been identified in False Pass. Polar Consulting has contacted False Pass
leaders but details are still sketchy. One creek identified for possible use would have a large access
cost.
Many miles of coastline within Borough boundaries and adjacent to all Borough communities offer
ocean energy potential. Tidal and current resources have been discussed but little data has been
brought to the discussion. Because of migratory bird permitting issues for wind power, Nelson
Lagoon’s only solution may be tidal energy.
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.
False Pass installed a new generation system in 2004. It has three generators: 90kw, 125kw and
150kw. Presently, the community primarily uses the 125kw generator which consumes
approximately 4000 gallons of diesel per month. Last month, the Aleutian Pribilof Island
Community Development Association installed a small wind turbine to produce electricity just for
the community center as a demonstration project. It is not yet operating.
G and K Electric, a privately owned utility, produces power for Cold Bay. G&K operates under
RCC certificate #88 serving approximately 61 Residential customers, 53 Commercial and
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 12 9/3/2008
one industrial customer. G&K generates approximately 3,000,000 kWh of electrical energy per year
with direct sales to customers of approximately 2,700,000 kWh per year. Peak usage has historically
been approximately 400 kW. The electrical system was completely rebuilt in 1988.
The G&K generation system includes 2-Caterpillar 3512 diesels, 1200 RPM directly coupled to Kato
2400 V , 0.8 PF 3-phase generators rated at 650 kW each and 1- Caterpillar 3512 diesel, 1200 RPM
directly coupled to a Kato 2400 V, 0.8 PF generator rated at 850 kW. All generators feed into a
Brown Bovari Switch gear rated at 1,200-amps. The Switch gear is computer controlled and is fully
automatic on demand. Fuel is purchased from an unrelated company (Frosty Fuel) via a buried pipe
line. The Utility has a 12,500-gallon double wall tank on site for storage. An automated transfer
system brings fuel from the outdoor storage tank to a 950-gallon powerhouse day tank. The Utility
purchases about 220,000-gallons of fuel a year from Frosty Fuel.
Nelson Lagoon Village Corporation operates a diesel power electric co-operative for its residents.
The generation system includes three diesel generators-one 50kw that is presently inoperative, one
95kw and one 125kw. The generators use between 25,000 and 34,000 gallons of number two diesel
per month.
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 Aleutians East Borough and the communities of Cold Bay, False Pass and Nelson Lagoon
understand very clearly the impact of the horrifying increase in the cost of diesel. The communities
recognize that the replacement of diesel energy with renewable energy resources will likely
contribute mightily to the survival of their villages. Aleut elders have real experience, having
witnessed several villages in this region, Belkofski and Unga to name just two, become ghost towns
within their lifetimes.
The following table is taken from the Aleut Corporation’s newsletter. It documents shareholder
outmigration from False Pass at 71% and Nelson Lagoon at 23% since 1886. Shareholders do not
include all residents but these statistics indicate a trend the Borough is seeing in its communities as a
whole, as well.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 12 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.
The City of False Pass purchased diesel in May 2008 for $4.19/gallon. The price is now $4.49/gallon
in False Pass.
G and K Electric in Cold Bay purchased diesel from Frosty Fuels in Cold Bay for $1.15 in 1995; for
$3.50 in April 2007 and is now paying $5.14/gallon.
Nelson Lagoon purchases its diesel once a year and is now paying $5.84/gallon. The utility
purchased fuel last July and paid $5.20 for diesel. In 2007, the bulk diesel price was $4.02.
This project will identify renewable resources for the communities’ power generation and will bring
residents closer to significantly lower electric bills.
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
The Aleutians East Borough, the Cities of Cold Bay and False Pass and the Nelson Lagoon Village
Council agree that no renewable energy system has been identified as the preferred alternative but
that this project will help the communities decide which renewable resource is most attractive.
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 City of False Pass has identified land available for wind power development. Cold Bay and
Nelson Lagoon have not gotten that far. This issue will be addressed in this Reconnaissance Study
Project.
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
This issue will be addressed in this Reconnaissance Report Project.
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
This issue will be addressed in this Reconnaissance Study Project.
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
This issue will be addressed in this Reconnaissance Report Project.
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
This issue will be addressed in this Reconnaissance Report Project.
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
This issue will be addressed in this Reconnaissance Report Project.
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.
This issue will be addressed in this Reconnaissance Report Project.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
This issue will be addressed in this Reconnaissance Report Project.
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
This issue will be addressed in this Reconnaissance Report Project.
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.
The Aleutians East Borough is prepared to contribute $5,000 cash from its general fund and an
estimated $10,000 equivalent from in-kind contributions in the form of staff time, grant
administration and project management.
False Pass installed pre-pay electric meters this fall in each household at the City and Borough cost
of $40,300. The community chose to spend their funds for meters not because they wanted to
improve their already very good collection rate but because they wanted to reduce household
energy consumption. The pre-pay meters, even after only a few months, have been successful.
Pre-pay meters have been in all Nelson Lagoon homes for many years.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 12 9/3/2008
Also in energy project spending this fall, the Aleutian Pribilof Islands Community Development
Association installed a small wind turbine demonstration project at the cost of approximately
$23,000 in False Pass to power the community center and another in Nelson Lagoon, also
approximately $23,000, to power the community warehouse building.
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 Juettner
Signature
Title Aleutians East Borough Administrator
Date