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Native Village of Quinhagak Wind Farm Construction Pre-Conceptual Design Report - Aug 2005 - REF Grant 2195383
4831a agle Street :•,.• Anchorage, �Iaska, 5Q3-7497 •"Phon' (90'� 551=1818 '• ,rIri State,(800)47&1818 Fax:.(907).561=2388 �'. GRANT APPLICATION r RESUMES [�] COST WORKSHEET [�] GRANT BUDGET FORM It DELEGATION OF Ln AUTHORITY SUPPLEMENTAL MATERIALS 0 TAB 1 GRANT APPLICATION r ; ALASM 1. APPLICANT INFORMATION Renewable Energy Fund Grant Application SECTIO0.1 _J13 L.1 A'f IN `CiR:1O.N ���.MIT Name (Name of utility, IPP, or government entity submitting proposal) Alaska Village Electric Cooperative Type of Entity: Cooperatively Owned Utility Mailing Address: Physical Address: Alaska Village Electric Cooperative Alaska Village Electric Cooperative 4831 Eagle Street 4831 Eagle Street Anchorage, Alaska 99503 Anchorage, Alaska 99503 Telephone: :Fax: 1-907-561-1818 or 1-800-478-1818 �1-800-959-0324 Email: mkohler@avec.org 1.1. APPLICANT POINT OF CONTACT 1.1 APPLICANT POINT OF CONTACT 'Name: Brent Petrie Title: Manager Community Development and Key Accounts =Mailing Address: Alaska Village Electric Cooperative, Inc 4831 Eagle Street :Anchorage, Alaska 99503 Telephone: Fax: 1-907-565-5358 or 1-800-478-1818 1-907-561-2388 Email: boetrieCa)-avec.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) ...._._._ _..._..._. �. .._......__....� ....__._.. _.._.._ _ __........_._..... _ X An electric utility holding a certificate of public convenience and necessity under AS 42.05,or An independent power producer, or AEA 09-004 Grant Application Page 1 of23 9/2/2008 1 /IE'D ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application '�iA local government 'A governmental entity (which Includes tribal councils, and housing authorities) . . ............ YES NO 1.2.2 Attached to this application is formal approval and endorsement for its project by its board of X I ] directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant's governing authority is necessary. YES NO 1.2.3 As an applicant, we have the administrative and financial management systems and follow that the forth in the rocurement standards comply with standards set rant agreement. P pY 9 9 YES NO 1.2.4 If awarded a 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). _ ._.._ _...__-.m. m...-...._..._ _. - .,..__ 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. Alaska Village Electric Cooperative proposes a project to complete the Final Design & Permitting and Construction of a system to add electrical generation from wind power to the existing electrical generation and distribution system in Quinhagak Alaska. The scope of the project will include road access to and and development of a wind generation farm consisting of (3) wind turbines, as well as new control modules. AEA 09-004 Grant Application Page 2 of 23 9/2/2008 ALASKA Renewable Energy Fund / ENERGY AUTHORITY Grant Application 2.2. PROJECT DESCRIPTION 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. 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 proposed costs for the project totals $4,313,603. It is broken down as follows: Of these funds, Alaska Village Electric Cooperative is providing a 10% match which equals $431,360. Attached to this application you will find a detailed budget outlining the costs broken down by: • Field Installation Costs • Wind Equipment - Turbines, Towers, Controls, etc • AVEC Costs - Geothechnical Studies, Project Management, etc The Grant Budget Form per application from Section 6.0 is also included within the application package. 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 installation and provision of wind turbines will result in reduced fuel use and costs for the people of Quinhagak. It is estimated that there will be an annual net fuel savings of 46,223 gallons (15,408 gallons AEA 09-004 Grant Application Page 3 of 23 9/2/2008 I ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application per turbine). At the current cost of $4.69/gallon, this translates into an annual cost saving of $216,643. If fuel continues to rises to $5.00/gallon, as is expected, the annual cost saving will be $231,115. Simulations of wind resource versus load demand result in an estimated gross fuel savings of over 53,650 gallons of diesel fuel per year at the Quinhagak plant, from efficiency improvements due to new automated switchgear, from diesel -powered generation being displaced by wind, and by displacing diesel -fired hot water heating with excess electrical energy from the wind turbines. Annual Fuel Cast Savings $350,0ryy00 s E $300,000 .,D GSVyal00 $200,000 � � W S a y��}yx-'g.,,,. /�/� /,Gla t& . $100.0U0��'yy{y $50 000 jw 1 2 3 4 5 Number of Wind Turbines In addition to savings in fuel usage and cost, using wind energy will also have the following widely recognized benefits: • Reduction of long-term dependency on outside sources of. energy; • Reduction of exposure to fuel price volatility; • Reduction of air pollution resulting from decreased fossil fuel combustion; • Reduction of possible spills from fuel transport & storage; and • Reduction of overall carbon footprint and its contribution to climate change, by reducing the emission of 452 tons of CO2 annually 2.5. PROJECT COST AND BENEFIT SUMMARY Include a summary of your project's total costs and benefits below. 2.5 PROJECT COST AND BENEFIT SUMMARY Include a summary of your project's total costs and benefits below. 2 51 Total Protect Cost (including estimates through construction) $4,313,603__ 2.5.2 Grant Funds Requested in this application f $3,882,243 2.5.3 Other Funds to be Provided (Project Matching) $431,360 _ 2 5 4 Total Grant Costs (sum of 2 5 2 and 2 5 3) _.._ µ ry y _. $4,313,603 2.5.5 Estimated Benefit (Savings) $216,643 yrly* 2.5.6 Public Benefit (If you can calculate the benefit in terms of =452 ton reduction in CO2 dollars please provide that number here and explain how you emissions; 15 year payback calculated that number in your application.) s period AEA 09-004 Grant Application Page 4 of 23 9/2/2008 ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application At the current cost of $4.69/gallon, this translates into an annual cost saving of $216,643. If fuel continues to rises to $5.00/gallon, as is expected, the annual cost saving will be $231,115. 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. Alaska Village Electric Cooperative's (AVEC) project management approach to this project, and to its overall energy upgrade program, is to utilize a team approach consisting of AVEC staff, external consultants and construction management contractors. AVEC provides a project team from its operating staff. The President and CEO acts as Program Executive and maintains ultimate authority programmatically and financially. The manager of the community development group acts as program manager. The group provides internal focus and coordination of special projects including project development, planning, construction coordination, and reporting. Resources include a project coordinator, contracts clerk, accountant, engineer, and community liaison. The vice president and manager of AVEC's engineering group provide technical input on generation and distribution issues to the team. Additionally, the engineering group provides specifications, design and drawings for AVEC construction of diesel power plants and distribution systems. The manager of operation and construction provides construction management and commissioning input on behalf of new construction performed by AVEC staff. The manager of administrative services provides support in accounting, payables, financial reporting, and capitalization of assets in accordance with RUS guidelines. For project delivery, an amalgamated team approach is utilized. To support the AVEC team, design consultants and construction managers (CM) are selected. Both disciplines are derived from a resource bank of professional firms with applicable histories of performance in rural Alaska. The construction manager works concurrently with the design consultant through design development to provide constructability insight and value engineering to maximize the overall effectiveness of the final construction documents. Concurrent with design development, material and equipment procurement packages are formulated by the CM in collaboration with AVEC's purchasing manager. Each package is competitively procured or issued from cooperative materials. Purchase orders are formulated with delivery dates consistent with dates required for barge or air transport consolidation. Multiple materials and/or equipment are detailed for consolidated shipments to rural staging points, where secondary transport to the village destination is provided. The CM tracks the shipments and provides handling services to and around the destination project sites. The CM is responsible for the construction activities for all project components of the facility upgrade. Local labor forces are utilized to the maximum extent possible to construct the projects. Local job training is provided as a concurrent operation under the management and direction of the CM. All construction costs, direct and indirect are reimbursed on a cost only reimbursement to the CM or paid directly by AVEC. For the facilities applied for in this application, AVEC is responsible for managing the commissioning process in conjunction with the CM, designers and vendors. That entails testing and training of operational personnel, as well as providing for all contract closeout documents. AVEC's concern and objective is to have a managed project delivery approach from inception through operation. 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. AEA 09-004 Grant Application Page 5 of 23 9/2/2008 ALASM Renewable Energy Fund ENERGY AUTHORITY Grant Application Meera Kohler, President and CEO Meera Kohler has more than 25 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage, in late 1997. And since 2000 has been president and CEO of Alaska Village Electric Cooperative. Mark Teitzel, Vice President/Manager, Engineering Mark Teitzel has been employed with AVEC since 1980, when he began as the Manager of Engineering. Mr. Teitzel has experience with planning short and long range electrical distribution systems serving approximately 7500 meters, and has also performed power requirement studies, and designed system extensions and improvements. Mark Teitzel coordinates the development of departmental operating policies and procedures, and is also responsible for developing future AVEC projects. He acts as liaison with the Alaska Division of Energy, USDA Rural Utilities Service and other governmental authorities. Mark Bryan, Manager of Operations Mark Bryan supervises the cooperative's line operations, generation operations and all field construction programs. He has worked at Alaska Village Electric Cooperative since 1980, was appointed Manager of Construction in May 1998 and was promoted to Manager of Operations in June 2003. In a previously heldposition as a field plant instructor, he supervised the installation of diesel generators and hydronic systems. He has also assisted in the calibration of new generator installations, and designed and installed special research and development projects for the construction department. Debbie Bullock, Manager of Administrative Services Debbie Bullock has been employed with AVEC since 1993 and is responsible for all administrative and financial records of the cooperative. She is responsible for preparing USDA-RUS reports, Regulatory Commission of Alaska rate filings, financial forecasts, budgets and Power Cost Equalization reports as well as overseeing the day-to-day office operations. Brent Petrie, Manager, Community Development and Key Accounts Brent Petrie will take the lead role as project manager. He has worked for Alaska Village Electric Cooperative since 1998, where he manages the development of alternatives to diesel generation for AVEC such as using hydro, wind or heat recovery. He also manages relationships with AVEC's largest customers and is the project manager for AVEC's many construction projects as an energy partner of the federally funded Denali Commission. Mr. Petrie has been employed in the energy and resource field for more than thirty years, having worked for the federal and state governments as consultant, planner and project manager. He has been a utility manager or management consultant since 1993. As General Manager of lliamna-Newhalen-Nondalton Electric Cooperative from 1994 to 1998, he reported to a seven -member, elected board ofdirectors, and served as project manager on its hydroelectric project development. He is an elected member of the Board of Directors of the Utility Wind Interest Group representing rural electric cooperatives and serves on the Power Supply Task force of the National Rural Electric Cooperative Association. Mr. Petrie has a Master's Degree in Water Resource Management, and a Bachelor's degree in Geography. Georgia Shaw, Manager of Member Services Georgia Shaw is responsible for consumer relations, education, and monthly electric billings. She also handles the collection and disconnection proceedings and maintains the utility's electric tariff. A more complete biography for these positions is attached. AEA 09-004 Grant Application Page 6 of23 9/2/2008 /&�ORITY ALASHKA Renewable Energy Fund Grant Application AVEC Project. Management ,Orcg. Chart AVEC will provide a project team from within its operating staff. To further support the AVEC team in project delivery, design consultants and construction managers (CM) are selected. 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.) AEA 09-004 Grant Application Page 7 of 23 9/2/2008 A L A S K A Renewable Energy Fund ENERGY AUTHORITY Grant Application 3.3. Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The three major project milestones for this project are: Permitting and Design • Permits Obtained: to allow time for mobilization of contractor for civil works • Electrical Systems & Control Design Construction • Order Wind Turbines & Towers: 6 months lead time is required from order to ready -to -ship date. • Complete Civil Works: needs to be done by time turbines arrive on site. Commissioning • Complete Turbine Commissioning: needs to be done early enough in the season to allow time to commission and tune the Control Module. 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. AVEC will ultimately be responsible for successful completion of the project, using partners that have successfully installed similar systems in the recent past. Electrical system engineering will be subcontracted, using current internal procurement practices and selection of engineering service providers from prequalified organizations. AVEC is in the procurement process for the Construction Management (CM). The identified CM will have previous experience on similar projects and will provide the wind turbine foundations on a design/build basis. The CM will also provide all ancillary electrical equipment and install the wind turbines and the electrical balance of plant. 100kW Northwind 100 wind turbines from Northern Power will be used. The permanent magnet, direct drive Northwind 100 is the latest wind turbine model from Northern Power, based on earlier NW100 wind turbine models that AVEC has installed and operated in wind/diesel applications for several years now. Developed in conjunction with NASA, NREL, and NSF specifically for remote use in extreme environments, the Northwind 100 embodies the most recent design practices in the industry. Northern Power's experience with wind/diesel control systems complements AVEC's. AEA 09-004 Grant Application Page 8 of 23 9/2/2008 /KE:) ALASKA AUTHORITY ENERGY Renewable Energy Fund Grant Application 3.5. Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. AVEC will assign a project manager to the project. The project manager requires AVEC's construction manager to complete monthly reports to track overall construction progress. An example of such a report follows: CONSTKUCTION MANAGEWS MONTHLY PROGRESS REPORT To: Brent Petrie Date: August 13, 2008 Alaska Village Electric Cooperative From: David Harvey CE2 Engineers, Inc. Village: Toksook Say Project Component: Bulk Fuel 97G71002 Reporting Period: July/Aug. 2008 Wbrk Phase: Proiect Punch List Activity Summary., Punch list items completed, CE2 mobed site superintendent Freddy Cooper to Toksook Bay July 15, 2008 to address the items identified on the punch list created in the fall of 2007,Pipe painting, bolts replaced, leaks repaired, etc. Milestone Schedule: (to be determined by CM) Final Inspection by CIE2 and AVEC scheduled for week of August 18, 2008. Needs from: AVEC and/or Design team: Fbudget Issues: I Other: Photos are being developed and NAill be for vvarded when ready, ATTACHMENTS Procurement Log Progress Photos 0 Labor Report Training Report [) If any of these attachments are not included with your report please explain er4 qwe date they wilt be submitted, No other attachments are applicable at thislime. = Molly Sheldon, ,AVEC AEA 09-004 Grant Application Page 9 of 23 9/2/2008 /ALASKA Renewable Energy Fund ENERGYAUTHORITY Grant Application 3.6. Project Risk Discuss potential problems and how you would address them. In general, logistics, construction activities and weather all contain significant risks. Advance planning and allowing time for contingencies is crucial to success in such environments and has been built into the project schedule. By completing civil works during the summer of 2009, adequate time has been allocated to address any design, permitting, or supply issues. The project will also build a contingency into the project schedule by attempting to secure delivery of the wind turbines onsite by fall of 2009; however, a spring delivery 2010 will also be acceptable. AVEC routinely purchases Builder's Risk insurance to mitigate its exposure to these risks. In addition to outside insurance, procuring external firms that have a demonstrated history of success with projects much like this one in similar circumstances reduces much of the risk. 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. Quinhagak is a class 4 wind regime for wind power generation with low turbulence and moderate shear. During 2007, 1,897,593 kWh of energy was generated at the Quinhagak power plant using 140,439 gallons of diesel fuel. A three -unit array of Northwind 100 wind turbines generating almost 730,880 kWh per year could displace over 30% of the energy normally generated by diesel, and provide excess energy to heat water. The village of Quinhagak has decent winds but finds its fuel supply limited and costly. Solar power from photovoltaic solar arrays is a potential alternative, but suffers from higher capital cost and lower resource availability than wind at this site. Production of energy using tidal motion in the sea is a newly developing possibility. Being located within a mile of the coast, Quinhagak could potentially make use of tidal action. However, technology to make use of tidal motion is as yet immature. Even after initial development activities have been completed, the sub- arctic maritime environment of much of Alaska will provide additional challenges to the use of this developing technology. 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 existing power plant at Quinhagak consists of three separate diesel -powered engine generator sets, of 350 kW, 314 kW, and 397 kW capacity. These gensets were originally installed and started up in 1996, 2002, and 1986, respectively and most recently rebuilt in 2008, 2008, and 2001. The overall plant generated 13.51 kWh for each gallon of fuel consumed in 2007. AEA 09-004 Grant Application Page 10 of23 9/2/2008 'ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application The existing switchgear is not currently automated. 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 power plant produces electrical energy by burning diesel fuel in engine -driven generators. By adding wind turbines to the existing system, we expect the project to provide the same amount of electrical energy to the village using substantially less diesel fuel than is true today. In addition to offsetting much of the diesel -generated electricity, we also expect to use whatever wind -generated energy that exceeds electrical demand to heat water, also displacing diesel fuel that is presently burned in boilers. 4.2.3. Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Quinhagak is a long-established village that sits on the Kanektok River on the east shore of Kuskokwim Bay, less than a mile from the Bering Sea coast. Though located in a marine climate, it is subject to subzero temperatures, extended periods of darkness and blowing snow. Reliable electric service is essential to maintaining home heating systems necessary to safeguard the health of the population, especially the elderly and infants. Adapted from the Quinhagak Pre -Conceptual Design Report, prepared by NANA Pacific, Quinhagak is a relatively vibrant rural Alaskan coastal community with an active fishing industry. Quinhagak has grown steadily over the past 10 years increasing its population by 11 % during that timeframe. It is reasonable to expect increased population growth in the next 10 years compared to that of the last 10 years. Factors driving the community growth and development include new BIA housing and a sub -division that is in the pre -construction phase, new water and sanitation facilities that is under construction and will continue to be installed phases by Village Safe Water, and an upgraded runway that has increased the amount of cargo exportation. In a recent RUBA (Rural Utility Business Advisor) report, it stated that NVK is stable and competent with an experienced staff. The report indicates that Quinhagak has a "green" light status and meets all Essential and Sustainability indicators. Quinhagak relies heavily on air transportation for passenger, mail, and cargo service. With the recent improvements to the runway, Quinhagak can now accommodate cargo planes as large as a DC6. Reliable electric service is essential to maintaining vital navigation aids for the safe operation of AEA 09-004 Grant Application Page 11 of23 9/2/2008 /4ED ALASM Renewable Energy Fund ENERGYAUTHORITY Grant Application aircraft. Runway lights, automated weather observation stations, VASI lights, DME's and VOR's are all powered by electricity. Emergency medical service is provided in Quinhagak by a staff of health aide. Therefore medical problems and emergencies must be relayed by telephone or by some other communication means for outside assistance. Operation of the telephone system requires electricity. Reliable telephone service requires reliable electric service. Water in Quinhagak comes from a well. Reliable electric service is required for the continuous operation of the water and wastewater systems and to prevent freezing of the systems which will cause extensive damage and interruptions in service. Quinhagak is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights and security lighting. Children walk to school and outside lighting helps them find their way and be on the look -out for hazards such as deep snow or in the extreme case, polar bears. Residents of Quinhagak rely on a subsistence lifestyle where food is gathered and harvested and then stored for when it is needed. Refrigeration is essential for the extended storage of perishable food stuffs. Reliable electric service is essential for proper freeze storage of food. Coastal Villages Regional Fund (CVRF) operates a fish processing plant, Coastal Village Seafoods, (CVS) in Quinhagak that provides employment to the local communities. From the CVRF 2007 Annual Report: • One million dollars in payroll was generated from processing work • One million dollars in delivery fees were paid to the regional fishing fleet • 2.2 million pounds of salmon were processed at the Quinhagak Plant • 145 permit holders from 16 villages delivered salmon to the Quinhagak Plant • 88% of the processors were from coastal/regional communities Reliable electric service is essential for operating the Coastal Villages Seafood plant. We expect the addition of wind turbines to the electric generation system to reduce the amount of diesel fuel used in the village for power generation and for heating. 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 Renewable energy technology description: The system we plan includes three 100 kW Northwind 100 wind turbines, along with electric boilers to make use of excess electrical energy produced when the wind -based generating capacity exceeds the electrical demand. The Northwind 100 represents a new generation of wind turbines. Its permanent -magnet, direct -drive architecture is the current state of the art for advanced wind turbine design. That architecture overcomes many of the challenges of connecting old-style induction generators to electrical distribution grids. The AEA 09-004 Grant Application Page 12 of 23 9/2/2008 . Renewable Energy Fund ALASKA ENERGY AUTHORITY Grant Application permanent -magnet generator is connected to a full power converter that converts its variable, low - frequency, alternating -current output to direct current, then back to tightly regulated alternating current for output to the grid. The permanent -magnet generator requires no reactive power to energize its magnetic field, removing that influence from the grid. The power converter allows a broad degree of control over the form and quality of the power output to the grid. The capacitance and active controls in the power converter allow reactive power to either be consumed or produced by the Northwind 100 regardless of its real power output, even in the complete absence of wind. The turbine controls allow power output to be controlled by dynamic grid conditions, including automatic output reduction or complete shutdown, regardless of wind conditions. The combination of advanced controls and integrated disk braking allows gradual ramping of turbine output up or down, minimizing flicker and maximizing usable power. We expect three Northwind 100 wind turbines to produce almost 60% of the electricity consumed in the village today. The wind turbines should supply almost 620,000 kWh of electrical energy annually, including over 7 0, 000 kWh for use to heat water. Anticipated barriers: Logistical and weather barriers are common in the area. AVEC has routinely overcome these barriers in similar projects in similar areas. Permitting can sometimes affect projects adversely. At Quinhagak, AVEC has installed facilities requiring permitting. AVEC anticipates no extraordinary permitting requirements at this site. Basic integration concept: The wind turbines will interconnect with the existing diesel power plant. Secondary load control will dispatch boilers as required to use excess wind energy while allowing the diesel generators to continue running at efficient levels. Delivery methods: The wind -generated electrical energy will be delivered using the existing electrical distribution grid. In addition to the installation of (3) wind turbines, this project will install fully automated control modules to eliminate manual controlof the generator facilities. This avoids the manual mode of operation wherein machinery must be started or shut down multiple times during the day in order to meet load. The switchgear for this AVEC community has the AEA 09-004 Grant Application Page 13 of 23 9/2/2008 IRenewable Energy Fund ALASKA ENERGY AUTHORITY Grant Application capacity to control three diesel generator sets, which meet the load needs of the majority of our communities. The control enclosures and switchgear will be designed by a company that has a proven track record with such equipment and conditions. The system design documentation will include all specifications, operating manuals, technical drawings and BOMB for the controls, switchgear, and HMI. Similar switchgear installations have already been completed in the AVEC communities of Elim, Selawik, Koyuk, Kaltag, Kalskag, Kasigluk, and Toksook Bay. These projects are fully operational at this time. New switchgear will allow complete automatic operation and fault detection of the project. These features enable the facility to operate at higher levels of availability with the most economical configurations of equipment on-line for any given load. This will reduce the number of shutdowns, both controlled and uncontrolled. Moreover, the control module allows the system to be connected to the AVEC SCADA (Supervisory Control and Data Acquisition) system which allows remote monitoring of the equipment and loads so that problems within the system can be identified and solved before they adversely affect the community. Finally, the installation of automated switchgear, controls and secondary load controllers allows the integration and use of wind generation equipment that will dramatically reduce the community reliance of diesel generation as the sole source of power in the community. All equipment will be installed and operated from a fully weather tight module enclosure. Following is an example from Toksook Bay of the gain in efficiency as a result of installing automated switchgear: Alaska Village 1216 .trio Cooperative Adjusted vs. Unadjusted wino .& Diesel Ganerafing Etriciency by Year Toksook Say 19.00 16.E0 _ l SlataupdattotCtASKrA-1150.inPosition 2 O5t17181 16:D0 start-up Nato of 00 series so in Pot4lioa 3 �. f2.so osror,�2 17A0 &rt up data of avtamatad powtrplant 18,5o k72S 16.if0 DaW Toksook ttaeted to urviee Torwunok 3F20106 I 0 1 Mari -up date of theft Naethwirtd loot 1"2 e16.00 j..,.. .,..„._ ......7F1'.S,t06 .........._ .................... ..., � Gate Toktotk slaeiad 3o unite Nlgtttetute e uco ------- tl 13.60. ,......._,._._....•13,22.,.... f2.Eo 12.91 12.90 1. .1.. ._.. .. ........ $ 13 00 42.1 12.54 25250D1 --7 227 2.E12.11 713. 12,06 12.00. 12.02 ......._..... ._..._.... 917t .12.27 12,33 12.00 ...f1.86 .tf.65.....,... 11.50 - /1 i1.OD ...... _..... 10.So - 101'5 .. .. .. „.... ..... ... ....... ...... t 10A0 -. 40.43 -19" 1"] 1092 1997 1994 1995 19W5 1997 1998 4990 2000 200t 2002 2003 2004 2005 2006 2007 1--t-6ased tr"+Of ....:Wk tl: olc' rr•,tiux05 only (4Y:ad}ust4fd) -�'" fitted rA'+on aarge trCrtMS rpd 'wnk 1nW:nllXwot [atii.stcu AEA 09-004 Grant Application Page 14 of 23 9/2/2008 /&�ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application 1 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. AVEC has control of the land required for the installation of the wind turbines and for their connection to the existing power plant. Reference: Lease Agreement 2005-001285-0. More Info: Lease Agreement: AVEC and Qanirtuuq (http://kbmeister.bizware.com/urls/index.php?id=6603) 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 The access road and foundation system will require wetland permitting with the United States Army Corps of Engineers (USACOE) and a consistency determination by the State of Alaska Coastal Zone District utilizing the Coastal Zone Questionnaire. The USFWS has already approved installation of the wind towers. The community of Quinhagak has already zoned the area under consideration for development as commercial/industrial. 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 Fish and Wildlife Service, in a memo dated September 8, 2005, stated: "Therefore the Service Concurs with your determination that the development of a wind power generation facility in the village of Quinhagak is not likely to adversely affect threatened Steller's eiders or their critical habitat. Moreover, we recognize the beneficial aspects of this proposed project; these turbines are predicted to displace approximately 55,000 gallons of diesel per year." "As per a conversation with Ric Marchigiani on September 7, 2005, the power plant operator in Quinhagak will survey the grounds surrounding the wind turbines on a daily basis to monitor bird -strikes. If at any time during the construction or operation phases of this project, Steller's eiders are observed in the vicinity of the MET tower, turbines, or if a collision is documented, the Service should be notified immediately and consultation should be reinitiated. Preparation of a biological assessment or further consultation under section 7 of the Act regarding this project is not necessary at this time." This concludes the section 7 consultation on the Quinhagak Wind Generation Facility. The complete memo is attached. AEA 09-004 Grant Application Page 15 of23 9/2/2008 ORITY ALASHKA Renewable Energy Fund Grant Application More Info: US Fish and Wildlife Consultation (httr):Hkbmeister.bizware.com/uris/index.ahp?id=6601) 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. Source of Cost Data Anticipated costs for wind equipment are per manufacturer's estimates; all other cost estimates are derived from recent experience of Applicant and its consultants and construction managers, based on similar projects recently constructed or now under construction. 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 While the total project costs are $4,313,603, Alaska Village Electric Cooperative (AVEC) is requesting $3,882,243. AVEC's match for this project is 10% of the total projects cost, $431,360. A detailed summary follows on the next page. Alaska Energy Authority - RenewWe Energy Fund WnhagakWind BUDGET lNFORMAVON BUDGETSUNWAPM Local Match Federal Loral Match funds (16, Milestone or Taste funds State Funds Funds (Cash) Kind)' Other funds TOTALS 1, $195,000 $23,000 $210,00o 2. construction $304,893 $407,210 $4.012,103 3.%mmissioning $28,350 $3,150 $31.500 $0 so 50 $0 TOTALS $3,882,243 $431,360 $0 $4,313,603 Milestone 4 trio Ts N BUDGETiCATAGOWS: $1 $2 $3 TOTALS Direct Labor and Benefits $0 Travel, Meals, or per Glem $0 Equipment 50 Supplies $0 Crmtractualservices $210.M $4;072,103 $33500 $3,313,603 Construcdon 5enncees so Other oirect costs s4 TOTAL DIRECT CHARGES $210;000 $4,072,103 $31,500 KIMJ AEA 09-004 Grant Application Page 16 of 23 9/2/2008 i ALASM IIIIIIIIIIIIED 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 AVEC's existing NW100 wind turbines require two maintenance visits a year. Those visits currently cost AVEC $3,500 per turbine per year. The new Northwind 100 model that will be installed in Quinhagak, requires only one maintenance visit each year. So the three turbines at Quinhagak will require annual maintenance costs of $5,250. These costs will be funded by ongoing energy sales in the village. Further, because AVEC already operates the existing diesel power plant in Quinhagak and schedules routine maintenance visits each year, maintenance costs are spread over a larger capital plant than just the wind turbines. Renewable Energy Fund Grant Application Install NW100s Quinhagak, AK AVEC Summary Field Installation Description S Costs Materials S 445,600 Labor 4 247,020 Equipment 3 161,063 Mobroemob (rrei ht) 4 255,697 Construction Survey $ i6,525 Indirects $ 147.660 Contingency 5% on above $ 63,628 Construction Management $ 45,000 Subtotals 4 1,381,193 tivind Equipment -turbines, towers, controls, etc - Description S costs Nacelle, Controller, Smanview $ 684,000 Wind Tower $ 225,000 FAA Lights 4 6,000 Cold weather Package 4 60,000 Freight on turbines/towers etc. $ 165,000 Contingency 51A, on above $ $7,000 Inte rabonkontrol equipment S 1,260,000 Commissioning 3 30,000 Subtotal 4 2,477,000 AVEC costs Description S Costs Design (525K) and Permitti $25K) 5 60,000 Geotechnical studies 4 150,000 AVEC project m mt, travel, etc. $ 50,000 AVEC admin costs @ 5%of all project costs 4 ' 205,410 Subtotal $ 466,410 Cost Per Turbine TOTALS s 4,313,603 S 9,+i37,S6S Summary by Milestone S Costs Milestone'1: Designand Permitting 5 210,000 Milestone 2: Construction $ 4,072,103 Milestone 3; Commissioning $ 31,500 S 4,313,603 4.4.3. Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential powerpurchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project This is not applicable for this 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. AEA 09-004 Grant Application Page 17 of 23 9/2/2008 ` ALASHKA Renewable Energy Fund Grant Application The cost worksheet is included in the attachments to this application. 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. The project will be incorporated into AVEC's power plant operation. Maintenance will be managed in the same way as the maintenance of the diesel plant is managed. 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 wind turbines and control systems provided as part of this project will be fully incorporated into AVEC's power plant operations. From that perspective, the wind turbines will be treated as generating equipment, just like the generator sets. Maintenance schedules will be routinely developed and managed. The result will be improved reliability from the existence of additional generating sources and reduced fuel consumption from the use of wind. We do not anticipate any additional project development work at this site following this project. 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 AEA 09-004 Grant Application Page 18 of 23 9/2/2008 j ALASKA Renewable Energy Fund Grant Application -... __...w... ..... ........w,. __� Baseline i,IV1100 NitV10(i I NV41100 NU100 ( NU100 �I �ene�re�le Erectron . .... Penetration (Wjt d Papacrty / *p 49g4), Excess E Unmet jai Heating Fuel Savings Switchgear Improvement nual Cross Fuel Savings Less Turbine Downtime Annual ('let. Fuel Savings fuel savings per turbine Fuel @ US$4.68691gal Fuel @ US$5/gal Fuel @ US$5.6/gal 'ags @ MOM Wind 37.7-W 50,2% 52.8/ 352.0% 452.5% 0 .0- 0 0 0 5 440.184 394>738. 360.837 331.692 9 110,740 156J86 190,087 219,232 4 1,436 7,426 13,681 331192 3 56.088 54,537 52,192 5Q. 485 1 116;285 104,279 95,323 3T624 8 29,255 41,2601 550,216 57,915 4 379 1,9621 4,935 8,768 7 11,6281 10,4281 9,532 8.762 9 41.262 1 53.650 F 64.683 75446 115 1 S 278.221 1 $ We expect three Northwind 100 wind turbines will displace 46,223 gallons of diesel fuel each year. So far in 2008, AVEC has spent an average of $4.6869 per gallon for the fuel it has used to generate electricity at Quinhagak. If that continues to be the rate through the first year of operation of the wind turbines, then we project a savings of $216,643 during that first year. Assuming a 4% rate of inflation for the next 20 years, we expect the project to save almost $5 million over that period of time. As discussed previously, if fuel prices increase above the rate of inflation or if AVEC can reduce the downtime of the wind turbines, then these projected savings will increase. AEA 09-004 Grant Application Page 19 of23 9/2/2008 f EO ALASHKA Renewable Energy Fund Grant Application The non -economic benefits to the Alaskan population at large will be from the reduced carbon footprint of the power plant. By reducing the amount of fuel burned on the island by over 30%, we will significantly reduce an estimated 452 tons of CO2 put into the atmosphere. 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. While the total project costs are $4,313,603, Alaska Village Electric Cooperative (AVEC) is Requesting $3,882,243. AVEC is pleased to provide a 10% match of the total project costs which equals $431,360. A detailed budget summary is also provided that describes the main project costs by categories. Alaska Energy Avihor ty- Reneviabie Energy Fund tlu nhapk Wind BUDGET INFORMATION BUDGETStl;`a MARY. Local Match Federal Local Match Funds (in - Milestone or Task Funds State Funds Funds (Cash) Xmd)* Other funds TOTALS Loesignfpernsitting $180,000 $23,000 $210,000 2. Construction S3.664,893 S07,210 $4,072,203 3. commissioning $29 350 $3.150 $31,Si1t} Sb 5� s0 TOTALS $3,882,243 $431,360 $0 S4,313,603 W)L-stone It or Task," BUDGET CATAGORIE&, $1 $2 $3 TOTALS Direct Labor and benefits $0 'travel., aMeals, or Per Diem $0 Equipment Sp Supplies so contractual.aervices $210,OW $4,072,103 $31, HI $4,313,EO3 construct rril semces S other Direct costs Sit TOTAL D IRECT CHARGES $210,000 $4,072,103 $31 S00 : AEA 09-004 Grant Application Page 20 of23 9/2/2008 ` ALASM Renewable Energy Fund Grant Application Install 3 NW100s Quinhagak, AK AVEC Summary Field installation Description_ S Costs Materials $ 445,600 Labor $ 247,020 E ui meat $ 161,063 Mob/Dernob (freight) $ 255,697 Construction Survey $ 16,525 lndirects 147,660 Contingency 5% on above $ 63,628 Construction Management 45,000 Subtotals $ 1,381,193 Wind Equipment -turbines, towers, controls, etc. Descrt tion S Costs Nacelle, Controller, Smartview $ 684,000 Wind Tower $ 225,000 FAA Lights $ 6,000 Cold Weather Package $ 60,000 Freight on turbines/towers etc, $ 165,000 Contirlenc 5% on above $ 57,000 Integration/control equipment $ 1,250,000 Commissioning $ 30,000 Subtotal $ 2,477,000 AVEC costs Description S Costs Design (S25K) and Permitting (S25K) $ 50,000 Geottechnical studies AVEC :project mgmt, travel, etc, $ 15%000 $ 50,000 AVEC ad+ in costs Q 5% of all project casts 205,410 Subtotal $ 455,410 Cost lamer Turbine TOTALS 4,313,603 S 1,437,Z68 Summary by Milestone S Costs Milestone is Design and Permitting S 210,000 Milestone 2: Construction S 4,072,103 Milestone 3: Commissioning S 31.500 S 4,313,603 AEA 09-004 Grant Application Page 21 of 23 9/2/2008 / ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application '12.Existing wEnergy Generation ......_....__....._�._.._...._..................... Basic configuration ifs stem is art of the railbelt grid, leave this section blank Number of generators/boilers/other : Rated capacity of generators/boilers/other : _. __. 3 generators 350 kW / 314 kW / 397 kW Generator/boilers/other type : Cummins (x2) and Detroit Diesel ge of generators/boilers/other : 12 yr / 6 yr / 22 yr Efficiency of generators/boilers/other : 2007 Net System Efficiency of 13.51 kWh/gE Annual O&M cost Annual O&M cost for labor: (Annual O&M cost for non -labor: Annual electricity production and fuel usage (fill in as applicable) Electricity _[kWh] : _ _ _ _ _ _ _ _ 1,941,001 kWh (prod.)1,904,984 kWh (cons Fuel usage (if system is part of the Railbelt grid, leave this section blank Diesel [gal] : 145,539 gallon -Other Peak Load : � � .�._._.._._.__.._.. � _ _ 554 kW __._._.__..__.. _._._� _�__ .. _....._._.... ,,,.._........_..._._ Average Load : _.._._.._._.......__..._..._..�... ._....... ........... .._... � __......_..___................_.................._...w ...........w_ __.... 217 kW __ _._ _ � �.__._.____..._,....._..........,..,.,....... ,...._.._._,...._ Minimum Load : 108 kW (estimated) .Efficiency: ..__..._._..............._..._......_........_....-.__..� r...._..._._.._...._....,......,...._,..........,_........._,.........._._....._._._..,,____. _ 2007 Net: 13.51 kWh/gallon ____..._�.,__.,._,_........................._...__.._......_..._......_.. Future trends Annual heating fuel usage (fill in as applicable) Diesel [gal or MMBtu] : 11145,539 Electricity [kWh] : 111,940,984 vropane igai or mmbtut Coal [tons or MMBtu] Wood [cords, green tons, dry tons] Other: 3. Proposed System Design Installed capacity : : 300 kW Wind Turbines Annual renewable electricity generation Diesel [gal or MMBtu] I Electricity [kWh] : 730,880 kWh Propane [gal or MMBtu] : Coal [tons or MMBtu] _.. __._...__ ....__._.. ____ _ _,_.,...,_,..._..._ ____.._..__ __...___..,., ._,.,.._...,.,,....._............._,._... Wood [cords, green tons, dry tons] Other : 4. Project Cost ..._.__.__..____ ._ . ., ..,, _...... .......... .........._..._..... __-_..__.___.... _. .,,,.,,............ .... .._ . Total capital cost of new system : $ 1, ,603 Development cost nr ai O&M cost of news stem : $5250 Annual fuel cost: AEA 09-004 Grant Application Page 22 of 23 9/2/2008 /G'L:) ALASKA Renewable Energy Fund WED ENERGY AUTHORITY Grant Application 5. Project Benefits __......... _...__....._...._..__......._.............._.__......._ . _......... k._,,.... __, ._._. _..._..»..._..._ __._ .. ._... Amount of fuel displaced for Electricity : 41,260 gallons, plus an additional 10,428 due to automated switchgear improvements ]Heat,: 1,962 gallons Transportation :Price of displaced fuel : 2008 actual $4.6869 Other economic benefits : ( Reduced costs to the Coastal Villages Seafood fish plant will ensure Quinhagak retains them as long term partners in the community and ongoing economic development Amount of Alaska public benefits : _ '= Reduced carbon footprint (452 ton/year reduced CO2 ); payback in only 15 years 6. Power Purchase/Sales Price __.. _.... _ _._ ._..._.......�. =Price for power purchase/sale : ... n/a 7. Project Analysis Basic Economic Analysis 'Project benefit/cost ratio . ...._._..._...._._._._.._.._............_.......... __......__.,.,,,...,,»,.......,._..._...,,...__. 1.01 at 15 years; 1.5 at 20 years _..._., ____. .. _. __,_._.........,...._.._........_......... .... _...w._.............. Payback : _ 15 years 7.3. Grant Budget Form per application from Section 6. 7.4. An electronic version of the entire application per RFA Section 1.6 7.5. 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 this application • authorizes the individual named in this application to serve as the point of So to $a $710,M 5a,072J03 $31,500 $4,113,603 so so $210,000 $4,072,103 $31;So0 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. AEA 09-004 Grant Application Page 23 of 23 9/2/2008 �ALAS�KA Renewable Energy Fund Grant 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. Dame �C)Print NRUKAP ZFWI ��Title ate Job AEA 09-004 Grant Application Page 28 of 28 10/8/2008 TAB 2 RESUMES ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. KEY MANAGEMENT BIOGRAPHIES Meera Kohler President and CEO Meera Kohler has more than 25 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage, in late 1997. Since May 2000, Ms. Kohler has been the President and CEO of Alaska Village Electric Cooperative, headquartered in Anchorage, Alaska. AVEC employs approximately 77 employees and serves more than 7,200 consumers located in 52 communities throughout Alaska, encompassing one third of Alaska's rural population. Meera Kohler's credentials consist of a Bachelor's degree in Economics and a Master's degree in Business Administration from the University of Delhi, India. Mark Teitzel Vice President/Manager, Engineering Mark Teitzel's' employment with Alaska Village Electric Cooperative began in 1980 as the Manager of Engineering. In 1985 he was promoted to Vice President of Engineering. Mr. Teitzel has experience with planning short and long range electrical distribution systems serving approximately 7500 meters, and has also performed power requirement studies, and designed system extensions and improvements. Mark Teitzel coordinates the development of departmental operating policies and procedures, and is also responsible in developing future AVEC projects. He acts as liaison with the Alaska Division of Energy, USDA Rural Utilities Service and other governmental authorities. Mr. Teitzel holds a Master's in Business Administration, a Bachelor of Science degree, and also graduated with an Arctic Engineering and Arctic Utility Distribution Systems. He is also a Licensed Professional Engineer in the J states of Alaska and Idaho. Brent Petrie Manager, Community Development and Key Accounts Brent Petrie has worked for Alaska Village Electric Cooperative since 1998, where he manages the development of alternatives to diesel generation for AVEC such as using hydro, wind or heat recovery. He also manages relationships with AVEC's largest customers and is the project manager for AVEC's many construction projects as an energy partner of the federally funded Denali Commission. Mr. Petrie has been employed in the energy and resource field for more than thirty years, having worked for the federal and state governments as consultant, planner and project manager. He has been a utility manager or management consultant since 1993. As General Manager of Iliamna-Newhalen- Nondalton Electric Cooperative from 1994 to 1998, he reported to a seven - member, elected board of directors, and served as project manager on its hydroelectric project development. He is an elected member of the Board of Directors of the Utility Wind Interest Group representing rural electric cooperatives and serves on the Power Supply Task force of the National Rural Electric Cooperative Association. Mr. Petrie has a Master's Degree in Water Resource Management, and a Bachelor's degree in Geography. Georgia Shaw Manager of Member Services Georgia Shaw has been employed with Alaska Village Electric Cooperative since April 1979 and is currently the Manager of Member Services. She is responsible for consumer relations, education, and monthly electric billings. She also handles the collection and disconnection proceedings and maintains the utility's electric tariff. Ms. Shaw began her career with AVEC as an Accounts Payable Bookkeeper, and also has worked as a General Ledger Bookkeeper. Ms. Shaw has been responsible for entering monthly and fixed journal entries, assisted in the annual audit and also receiving and recording all vendor invoices. She attended Schiller College in Heidelberg, Germany and also attended Anchorage Community College and University of Alaska Anchorage where she studied Accounting, Business Management and Business Law. Mark Bryan Manager of Operations Mark Bryan supervises the cooperative's line operations, generation operations and all field construction programs. He has worked at Alaska Village Electric Cooperative since 1980, was appointed Manager of Construction in May 1998 and was promoted to Manager of Operations in June 2003. Mr. Bryan previously held a position as a field plant instructor where he supervised the installation of diesel generators and hydronic systems. He has also assisted in the calibration of new generator installations, and designed and installed special research and development projects for the construction department. Mr. Bryan is a Certified Journeyman Electrician. He attended American Diesel College, and is educated in many different areas including fire safety, electrical distribution systems, and hazardous waste operations and emergency responses. Debbie Bullock Manager of Administrative Services Debbie Bullock is the Manager of Administrative Services at Alaska Village Electric Cooperative. Ms. Bullock has been employed with AVEC since 1993 and is responsible for all administrative and financial records of the cooperative. She is responsible for preparing USDA-RUS reports, Regulatory Commission of Alaska rate filings, financial forecasts, budgets and Power Cost Equalization reports as well as overseeing the day-to-day office operations. Ms. Bullock has worked for previous employers as office manager, bookkeeper, and has held a tax internship where she prepared individual, partnership and corporate tax returns. Ms. Bullock has a BBA in Accounting and has attended various specialized training programs in her area of expertise including National Rural Electric Cooperative Association's management internship program. TAB 3 COST WORKSHEET .2. Existing Energy Generation Basic configuration (if system is part of the railbelt grid, leave this section blank) Number of generators/boilers/other : _._......._.._._..._..._. _................. ..,,,...,.,...___.... 3 generators _..._ _ - _ ..........._.. .,,,,,......,,_,_._.,._.,,_ ....,..,.,....,......,_..,.....,._.,,,,...,... Rated capacity of generators/be: 13 _.._......... oil_..,,_.............rs/other.,,...,._... ,...,...._...... / / 7 kW 50 kW 314 kW 39 __... _...__... .___ __... ...,_. _......_._..... Generator/boilers/other type : Cummins (x2) and Detroit Diesel Age of generators/boilers/other : _..__-. _ ......_............... __ _ _.. _ ...._ __ __-__ 12 yr / 6 yr / 22 yr ._...__._._.._-__ __,_....._._� _._._._.....,_,__... . __....__.v.., _..._.... Efficiency of generators/boilers/other : 2007 Net System Efficiency of 13.51 kWh/gallon nnual O&M cost nnual O&M cost for labor: nnual O&M cost for non -labor: :Annual electricity_ production and fuel usage (fill in as applicable) Electricity [kWh] :- 1,941,001 kWh (prod.)1,904,984 kWh (cons) Fuel usage (if system is part of the Railbelt grid leave this section blank _^ Diesel [gal] : - 145,539 gallon - Other: Peak Load : ,; 554 kW Average Load: 217 kW Minimum Load: 108 kW (estimated) .Efficiency: _ _ _._ _ _.........._ _ ._........... _._... 2007 Net: 13.51 kWh/gallon _ _..,..,_,,,..._.._,.. _ _.......................... ,........_. Future trends _nnual heating fuel usage (fill in as applicable) _ k. _.._. .... _.._.__,...,._._..,..., --- ie..__..__....,......._.....,_._._....__ Dsel [gal or MMBtu] : 1545,539 _. _ el .__...._..._...._.._..___ �._...M.,.._...................._.,..._...._...........___.._.._..._...._...µ._ ,_... �._ Electricity [kWh] : 1,940,984 :Propane [gal or MMBtu] ._........_....._.._..._._ _ .... Coal tons or MMBtu Wood [cords, green tons, dry tons] ;Other 3. Proposed System Design Installed capacity: t 300 kW Wind Turbines Annual renewable electricity generation . ,_..... _..___.. _.._.. _... Diesel [gal .or MMBtu] : _.._...__ ____... _..... __.---- _..._._... Electricity [kWh] : 730,880 kWh Propane [gal or MMBtu] : _._.._.._.__..__.._...__..__..._.____.__.w..,..... .............__,._,..._ . ._..._._.._.__ __,.......... ......... ............ .._.___.. Coal [tons or MMBtu] ..._.. _.m _ _...._.__,.w..,_,.._.._.................................... _...... .__._. _,_._ ..____ _ __. ___...,..., w__........_....-w.._,..._................._..._. Wood [cords, green tons, dry tons] Other : _............... . .............v. _._. __ _....._ _ ,. ,,.... 4. Project Cost Total capital cost of new system . $4,313,603 Development cost: __ _ �e _._.._ _._. W_._ _____._ _ ----- --,__._. __. _ _ ___� ____ __.._.._. em . Annual O&M cost of new system $5250 Annual fuel cost: __.,_._ _ 5. Project Benefits Amount of fuel displaced for :Electricity : p 41,260 gallons, plus an additional 10,428 due to automated switchgear improvements Heat: i 1 962 gallons g Transportation Price of displaced fuel : 2008 actual $4.6869 Other economic benefits: ;will Reduced costs to the Coastal Villages Seafood fish plant ensure Quinhagak retains them as long term partners in the community and ongoing economic development. AmountofAlaska public benefits . £ Reduced carbon footprint (452 ton/year reduced CO2 ); payback in only 15 years 6. Power Purchase/Sales Price Price for power purchase/sale : n/a 7. Project Analysis Basic Economic Analysis Project benefit/cost ratio :� 1.01 at 15 years; 1.5 at 20 years Payback : __j 15 years TAB 4 GRANT BUDGET FORM 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o r» o 0 0 0 o M j C 0 Lri H O o o Vv m tf). V). c 3 LL L d s O 0 L> s i +' . c CCfi G � W d -0 ca O C J 3 v c ..000 YH 00 O O 4,' v O N H O y to N O t/? u c tf)- a -J LL bo c 0 0 0 w o n'i Ci Y 7 0 0000 M U) W Q1 ZF 06 a LD V)- Z � N 0 of H a cc O N z LL h io W � G M y LL co OA C a N C 0co Eo ' .x D 0 a a� m i- 0 E sLU YO 'N C E C O U U 7 U D m 2 I N m 0 0 ai 0 eri ti M 0 0 0 N ai M 46 0 O cri O -1 N n 0 in- O O 0 O 0 0 N v, E H y W N 0 W v QJ U a 0 v Q cCo v cn U U v to Q 0 0 u W v C0 +0' u G W J C N uru i J C7 N O r 0 N > '� Q C CC: L I- f6 D 0 H cr w cn U U 0 O U- CS as m d' O O O> O Q w Q Q U- w 10/8/2008 Install 3 NW100s Page 1 of 1 Quinhagak, AK AVEC Summary Field Installation Description $ Costs Materials $ 445,600 Labor $ 247,020 Equipment $ 161,063 Mob/Demob (freight) $ 255,697 Construction Survey $ 15,525 Indirects $ 147,660 Contingency 5% on above $ 63,628 Construction Management $ 45,000 Subtotals $ 1,381,193 Wind Equipment - turbines, towers, controls, etc. Description $ Costs Nacelle, Controller, Smartview $ 684,000 Wind Tower $ 225,000 FAA Lights $ 6,000 Cold Weather Package $ 60,000 Freight on turbines/towers etc. $ 165,000 Contingency 5% on above $ 57,000 Integration/control equipment $ 1,250,000 Commissioning $ 30,000 Subtotal $ 2,477,000 AVEC costs Description $ Costs Design ($25K) and Permitting ($25K) $ 50,000 Geotechnical studies $ 150,000 AVEC project mgmt, travel, etc. $ 50,000 AVEC admin costs @ 5% of all project costs $ 205,410 Subtotal $ 455,410 Cost Per Turbine TOTALS $ 4,3133603 1 $ 1,437,868 Summary by Milestone Milestone 1: Design and Permitting $ 210,000 Milestone 2: Construction $ 4,072,103 Milestone 3: Commissioning $ 31,500 4.313.603 \\Athena\avec\KEY\KEYPublic\Grants\GrantApplications\AEA_AlternativeEnergyProposal\Quinhagak\Tab 4-Bdgt Form\2 Quinhagak Wind STG 100508 for AEA RE grant applic / AVECSummary TAB 5 DELEGATION OF AUTHORITY ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. f' j Delegations of Authority from the Board of Directors to the President & CEO I. OBJECTIVE To define the delegations of authority and responsibilities from the Board of Directors to the President and Chief Executive Officer to enable him/her to adequately direct the operations of Alaska Village Electric Cooperative, Inc. and to report to the Board on the results achieved. II. POLICY A. Planning 1. Policies To formulate, with the staff as appropriate, the policies of Alaska Village Electric Cooperative to be recommended by the President and Chief Executive Officer to the Board of Directors for their consideration. Such policies shall be reviewed by the President and Chief Executive Officer at least once a year and a recommendation made to the Board on any revisions required. 2. To develop, with the staff, the viewpoints, objectives and j goals of Alaska Village Electric Cooperative and to review periodically these objectives and goals, as well as the results achieved, with the Board. 3. Long and Short -Range Plans To conduct studies with the staff and outside consultants, if necessary, and recommend to the Board short and long-range plans, including plans in such areas as system studies, engineering work plans, power requirements and load forecasts, financial forecasts, energy management, member and public relations, construction, facilities, etc., and to report to the Board on results compared to such plans. 4. Membership Meetings To develop, with the staff, plans for annual and other meetings of Alaska Village Electric Cooperative, and to make appropriate recommendations to the Board. 5. Work Plans and Budgets To formulate, with the staff, annual work plans and budgets for Alaska Village Electric Cooperative and recommend them to the Board for their consideration,and to provide detailed quarterly reports on revenue, expenses and other results compared to such plans. 2001.1 AVEC - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO B. 6. Legislation To analyze and determine, with the Board and with the staff and in coordination with organizations such as Alaska Rural Electric Cooperative Association (ARECA) and the National Rural Electric Cooperative Association (NRECA), state and federal legislative and regulatory matters to be proposed, supported or opposed consistent with Cooperative goals and philosophy. Organization 1, Organization Structure a. To periodically review activities of Alaska Village Electric Cooperative and to determine with the staff as appropriate, othe organization structure best suited to carry out 'the overall objectives of Alaska -Village Electric Cooperative within the limitations of the budget. b, To determine,, with the appropriate staff members, the need for additional positions, the transfer, reassignment, or elimination of present positions, and to effect such changes, provided they are within the limitations of the personnel costs of theapproved budget. 2. Selection of .Personnel a. To develop or approve standards and qualifications for use in recruitment, transfer, and promotion of personnel. Such standards and qualifications should meet all federal and state legal requirements. b. To select, appoint, transfer, promote, demote, discipline and terminate personnel. 3. Training a. To ensure that the staff members are trained in accordance with the qualifications and requirements of, their positions. b. To initiate and promote, through appropriate staff, training programs for all personnel within the limitations of the approved budget; including sending personnel to training programs outside the organization. q, Performance Appraisals a. To appraise, at least annually, the performance of immediate staff members and to counsel with them and assist them to develop and improve. 2001. 2 AVEC - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO b. To ensure that a performance appraisal program is established and carried out for all personnel and that adjustments for those outside the bargaining unit are .n based on merit. 5. Position Descriptions To ensure that written position descriptions and job specifications are prepared and reviewed as necessary for all personnel. 6. Fringe Benefits To administer or approve activities and actions with respect to annual leave, holidays, and other fringe benefit programs for the personnel within established policies and within the - limitations of the budget. A report shall be presented annually to the Board or committee of the Board describing the various benefits and employee and employer contribution, if any, and what percent fringes are of payroll. 7. Consultants a. To recommend to the Board the employment of general counsel and independent auditors., and contracts and agreements for their services with the committee making an appropriate recommendation to the Board. b. To select and a � ppaint other outside specialized consultants, and to negotiate contracts or agreements for services of such specialized consultants, within the limitations of the work plan and budget, and to advise the Board of actions taken. C. To report to the Board periodically on services provided and the fees received by principal consultants. 8. Wage and Salary Administration a. To develop wage and salary policy and present it to the Board for.appioval. b. To determine all salaries, except the President and Chief Executive- Officer's, within the Board approved wage and salary policy and within the limitations of the budget. 'A report is to be provided to the Board annually on the administration of the wage and salary policy. 9. Labor Relations a. To negotiate, with or without consulting assistance, labor contracts and make appropriate recommendations to the Board. i '.2001.3 AVEC - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO b, To administer the approved labor contract and see that the appropriate supervisors understand the provisions of the contract and its administration. C. Operations 1, Overall Administration a, To direct the day-to-day operations and activities of Alaska Village Electric Cooperative.' except as specified otherwise by the By -Laws or the. Board; to delegate authority to immediate staff; to authorize further delegation of authority to any level of management with full recognition that the President and Chief Executive Officer cannot be relieved of overall responsibility or accountability. b. To manage operations of Alaska Village Electric Cooperative in accordance with the policies of the Board and in accordance with policies and procedures of RUS and other lending institutions; as well as applicable federal, state, and local laws. C. To designate an appropriate person to serve as Acting President and Chief Executive Officer in an extended absence of the President and Chief Executive Officer. In case the President and Chief Executive Officer becomes incapacitated, the Assistant President and Chief fq Executive Officer shall serve temporarily as Acting President and Chief Executive Officer until the Board of Directors takes appropriate action, at a meeting to be convened as soon as possible. d. To ensure, that staff advice and assistance is provided to the Board .and its committees, and to participate in the deliberation of these committees as requested or required. e. To accept invitations to participate in or designate other staff members to participate in national,, regional, state, and local meetings which further the best interests of Alaska Village Electric Cooperative, within the limitations of Board policy and the approved budget. Participation by the President and Chief Executive Officer in such activities which require considerable time over a sustained period requires the approval of the Board. . The President and. Chief Executive Officer's serving on the board of other organizations shall be reported to the Board. f, To serve. as the authorized spokesperson for Alaska Village Electric Cooperative on matters and to keep the Board up-to-date and well informed on such matters. 2001.4 AVEC - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO g. The President and Chief Executive Officer shall take all necessary steps in the event that the Cooperative is served with legal process to protect all interests of the ), Cooperative with respect to such litigation and such matters shall be brought to the attention of the Board at the next scheduled meeting. 2. Membership Services To direct membership services in such areas as, but not necessarily confined to, public and member relations, load management, energy conservation, communications., and research as authorized by the Board. 3. Legislation a. To develop and carry out, in coordination with organizations such as ARECA and NRECA, and within expressed Board philosophy, a legislative program furthering Alaska Village Electric. Cooperative's objectives and policies. Such a program will include, but not be limited to, research, preparation, and presentation of testimony before appropriate committees, consultation with members of Congress, the State Legislature, and state and federal administrative and regulatory agencies. b. To participate with allied groups to obtain their increased understanding and support of Alaska Village Electric Cooperative's legislative and regulator ,objectives and programs. 4. Financial a. To make expenditures in accordance with the approved budget, including ap proval of non -budget items up to $100,000 or all non -budgeted items which, in his judgement are vital to effect unanticipated emergency maintenance or repairs. Non -budgeted items exceeding $100,000 which are not items vital to effect unanticipated emergency maintenance or repairs, must be presented to the Board for approval. b. To invest or reinvest funds, cash investments when due, and cash government bonds,, when and if necessary to protect Alaska Village Electric Cooperative's cash position and to carry out an effective cash management program. Investments will generally be made in CFC securities, in federal government insured or guaranteed securities or in other securities approved by the lending agencies. C. To authorize and approve the travel expenses of personnel except the President and Chief Executive Officer's on 2001.5 AVEC - RUS Grant Application Applicant Eligibility rom Board to President & CEO Delegations of Authority f company business within the limitations of the budget and within established policy. Such expenses shall be supported by itemized expense accounts with receipts attached, as appropriate. Expenses of the President and Chief Executive Officer will be reviewed by the Secretary/Treasurer. d. To approve account systems, procedures, statistics, and types of reports necessary for sound financial management and to meet the requirements of lending and regulatory agencies and for necessary control information required by the Board. e. To purchase or lease all equipment, vehicles, hardware, furniture, materials, and supplies within the.g with ines of the budget. All purchases shall comply RUS policies or procedures. f. To negotiate contracts for construction in accordance with RUS procedures. The contracts will be awarded in accordance with RUS procedures so construction completed can be reimbursed from loan funds without delay. g. To execute and deliver purchase orders or contracts for projects previously approved by the Board. h. To approve and sign changes under contracts previously approved by the Board and RUS if under $50,000. Those changes in, excess of $50,000 are to be reported to the Board at the next Board meeting and all changes are to be approved by RUS if appropriate. i. memberships in civic. clubs and To authorize individual organizations in which he/she thinks .of him/herself or. staff members would be beneficial and to authorize payment' of dues by Alaska Village Electric Cooperative within the limitations of the budget. Professional registration fees will only be paid for registration in the State of Alaska, if such registration is desirable or required. j. To execute and delivery on behalf of Alaska Village Electric Cooperative agreements essential to the management of the Cooperative, such as affidavits, agreements, and leases to implement Board actions. k. To negotiate franchises and execute all petitions and documents in relation thereto; to acquire by purchase or lease all easements and power plant sites and. execute, deliver and accept alldocuments relating thereto; to execut: •r .;:' and,..- deliver all environmental studies and reports r: to ' make apgtion for all permits relating to the operations of Alaska Village Electric .Cooperative's design, route, and determine the site for all facilities. 2001.6 AVEC — RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO 1. To perform all acts necessary or incidental to the management of the operations of Alaska Village Electric Cooperative, unless such acts are specifically reserved to the Board pursuant to law, and Articles of Incorporation, the By -Laws, or policies. 5. Controls a. Operations To submit periodic and special reports to the Board on conformity of operations with approved policies and programs; to recommend any revisions requiring Board approval and to direct any remedial action required. b. Finances To submit periodic and special financial reports to the Board to keep them informed of Alaska Village Electric Cooperative's financial position and conformance to financial plans and forecasts, and to see that all persons having access to cash or responsible for purchasing of materials are properly bonded in accordance with all requirements of the lending agencies. C. Budgets To report quarterly to the Board on revenues and f,{ expenditures compared to budget. To recommend any revisions required, and to direct any necessary remedial action. d. Annual Financial Audit To participate with the Board in the review, with the auditor present,. of the annual financial audit and management letter and to direct. any remedial action required and to ensure that the management` letter, along with the Audit Report, is.sent to each Board member prior to the meeting at which they are to be discussed. e. >Materials Management 1. To determine the amount of and establish proper control of all physical inventories to .minimize investment in inventories needed to meetoperating and construction needs. 2. To ensure that a system is established to accurately account for all materials used. f. Member Complaints To submit periodically to the Board an analysis of member 2001.7 AV1=C - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO IV. complaints and to take any corrective action required or to recommend appropriate revisions in Board policy. g. Reliability of Service To submit annually to the Board a report on service reliability and any remedial action taken. h. By -Laws i. j- k. 1. To report to the Board on annual review with the General Counsel of the By -Laws and to recommend any revisions required. Availability of Power Supply To report periodically to the Board on load growth compared to the power requirements studies and to recommend plans to meet anticipated growth to ensure an adequate and reliable supply for the members at the lowest possible cost consistent with sound business and management practices. Rates To continually study power and other costs compared to projections and to recommend to the Board, as far in advance as possible, any changes in retail electric rates necessary to maintain financial strength and stability and to meet all requirements of lending and regulatory agencies. construction To review constructionpractices with appropriate staff to make sure projects are being constructed in accordance with RUS policies and procedures so that reimbursement for completed construction can be obtained promptly. Internal Auditing To independently assess the adequacy, effectiveness and efficiency of the system of control within the organization and the quality of ongoing operations against policies and procedures established by management and/or the Board, and rules of RUS and other lending institutions; as well as applicable federal, state and local laws. RESPONSIBILITY A. The President and Chief Executive Officer shall report to the Board periodically on how these delegations are being carried 2001.6 AVEC - RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO out. Chairman of the Board shall be kept appraised of all major issues on a regular basis between all Board Meetings. The President and Chief Executive Officer may make further delegations to his staff as required. B. The Board is responsible for approving any changes in the delegations to the President and Chief Executive Officer. C. The Chairman shall be responsible for seeing that the performance of the President and Chief Executive Officer is appraised prior to his/her anniversary date each year by the Executive Committee of the Board and that a report is made at a subsequent meeting to the full Board, on the results of such appraisal, and that the results of such appraisal are discussed with the President and Chief Executive Officer. Date Adopted: 3-23-92 Resolution # 92-18 Date Revise.;I: 5-05-00 Resolution # 00-37 ATTEST: Lq J a Walker, Secretary 2001. 9 AVEC — RUS Grant Application Applicant Eligibility RESOLUTION 00-37 Delegations of Authority from the Board of Directors To the President & CEO . WHEREAS, the policy for delegation of authority from the Board of Directors to the General Manager has been reviewed; and WHEREAS, the title of General Manager has been changed to President & CEO and this change has been made in the policy noted above. NOW, THEREFORE, BE IT RESOLVED thatthe attached updated policy for delegation of authority from the Board of Directors to the President & CEO is approved. Certification 1, Julia A. Walker, Secretay, do hereby certify that the above is a true and correct excerpt from the minutes of the meeting of the Board of Directors of the Alaska Village Electric Cooperative, Inc., 4831 Eagle Street, Anchorage, Alaska 99503, on the 5th day of May 2000, at which meeting a quorum was present. %IIIIIIII/11"I (,epSo ELECTqc, • 'PP ON, , 0 O •'0` �� : VO 1t�` 00 AVEC — RUS Grant Application 6(. 2�i ulia . Walker, Secretary las a Village Electric Cooperative, Inc. 2001.10 Applicant Eligibility TAB 6 SUPPLEMENTAL MATERIALS 20OS257 U& F7Me�. D.ffM United States Department of the Interior FISH AND WILDLIFE SERVICE Orr ,.� Anchorage Fish & Wildlife Field Office dam.•• 605 West 4 h Avenue, Room G-6.1 : SEP in reply, refei to, Anchorage, Alaska 99501-2249 .. APWFo C September 8, 2005 Mr: Brent Petrie Alaska Village. Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503 Re: Quinhagak Wind Generation Facility (consultation # 2005257) Dear M' r. Petrie, On August 16, 2005, we received your letter requesting concurrence with your determination that the installation and operation of a wind power generation facility in Quinhagak, Alaska is not likely to adversely affect threatened or endangered species or their critical habitat. This project, which is funded by the Denali Commission, proposes to install three, Northwind 100Tm turbines, preceded by the installation of a NRGTM meteorological tower (MET) to monitor weather parameters. The NRGTM MET tower is a 30 meter tall, guyed tower with anemometers to assess wind resources at the location of a proposed wind power facility. The Alaska Village Electric Cooperative (AVEC) plans to install bird flappers and/or bird scare tape on the guy wires to increase the visibility of the wires to passing birds. The MET tower is to be installed in September, 2005. Northwind 100TM wind turbines have a windswept area of 284m2 (3057ft ) and are erected on tubular towers that are self supporting (i.e., no guy wires are required). Three blades rotate at a speed of 45-69 RPM, and the tip of the blade will reach down to approximately 20.7 meters (68 feet) above ground level. An approximately 305 meter roadway will be constructed to access the turbines. A minimal length of new power transmission line will be installed (60 meters maximum). The North American breeding population of Steller's eiders (Polysticta stelleri), listed as threatened under the Endangered Species Act (Act) in 1997, migrate along the shorelines of western Alaska during spring as they are heading to their breeding grounds to the north. These sea ducks are believed to migrate just off -shore, following the coastline to their destination. Aerial survey data indicate that during spring, Steller's eiders congregate in small flocks (1-50 individuals) off the Quinhagak coastline (Lamed 2002). Reportedly, Steller's eiders, on occasion, veer away from the coastline and fly inland, particularly during periods of low visibility such as fog. Additionally they tend to migrate at night, fly relatively low over water and land (approximately 9 meters), and fly very fast (about 56 kph). These factors leave them very susceptible to striking on -land structures, such as towers, wires, and buildings, when they stray inland. Furthermore, because red solid or blinking lights may actually attract birds to the TAKE '. .WT. l i y1 Mr. Brent Petrie structures that avionics are trying to avoid, the Service developed the following recommendation with regard to lighting towers: unless.otherwise required by the FAA, only white (preferable) or red strobe lights should be used at night, and these should be the minimum number, minimum intensity, and minimum number offlashes per minute (longest duration between flashes) allowable by the FAA. The use of solid red or pulsating red warning lights at night should be avoided. Current research indicates that solid or pulsating (beacon) red lights attract night - migrating birds at a much higher rate than white strobe lights. Red strobe lights have not yet been studied (U.S. Fish and Wildlife Service 2000). The Service believes that the probability that an eider will collide with either a turbine blade is low, due to the height of the lowest tip of the blade (20.7 meters) compared with the average height that an eider flies (9 meters). Further, because low numbers of Steller's eiders have been observed near Quinhagak during spring and fall aerial surveys, the guy wires of the MET tower will be marked, the MET tower will be installed for two years or less, the self supporting nature of the turbine towers; wid-thcmfinirnal'iength-of =wpowm--iinwproposed; the Service believes the probability that a Steller's eider will strike the turbines is so low as to be discountable. Therefore, the Service concurs with your determination that the development of a wind power generation facility in the village of Quinhagak is not likely to adversely affect threatened Steller's eiders or their critical habitat. Moreover, we recognize the beneficial aspects of this proposed project; these turbines are predicted to displace approximately 55,000 gallons of diesel per year. As per a communication with Eric Marchigiani on September 7, 2005, the power plant operator in Quinhagak will survey the grounds surrounding the wind turbines on a daily basis to monitor bird -strikes. If at any time during the construction or operation phases of this project, Steller's eiders are observed in the vicinity of the MET tower, turbines, or if a collision is documented, the Service should be notified immediately and consultation should be reinitiated. Preparation of a biological assessment or further consultation under section 7 of the Act regarding this project is not necessary at this time. The above consultation relates only to federally listed or proposed species and/or designated or proposed critical habitat under our jurisdiction. It does not address species under the jurisdiction of National Marine Fisheries Service, or other legislation or responsibilities under the Fish and Wildlife Coordination Act, Clean Water Act, National Environmental Policy Act, Migratory Bird Treaty -Act (META), or Bald and Golden Eagle Protection Act. -2- Mr. Brent Petrie Migratory Bird Treaty Act As you know, another of the Service's Trust Resources, migratory birds, can suffer significant mortality from collisions with towers and associated infrastructure. The MBTA (16 U.S.C. 703- 712), prohibits the taking, killing, possession, transportation, and importation of migratory birds, their eggs, parts, and nests, except when specifically authorized by the Department of the Interior. While the MBTA has no provision for allowing unauthorized take, it must be recognized that some birds may be killed at structures such as wind turbines even if all reasonable measures to avoid it are implemented. While it is not possible under the MBTA to absolve individuals or companies from liability if they follow recommended guidelines, the Division of Law Enforcement and Department of Justice have used enforcement and prosecutorial discretion in the past regarding individuals or companies who have made good faith efforts to avoid the take of migratory birds. We recommend that you review the Service Interim Guidance on Avoiding and Minimizing Wildlife Impacts from Wind Turbines(bM://www.fws.g;ov/r9dhcbfa/wind.pdf). Conclusion This concludes the section 7 consultation on the Quinhagak Wind Generation Facility. Thank you for your cooperation in meeting our joint responsibilities under section 7 of the Act. If you have any questions, please'contact me at (907) 271-1467. In future correspondences regarding this consultation please refer to consultation number 2005257. Sincerely, Ellen W. Lance Endangered Species Biologist Cc: Denali Commission Literature Cited Lamed, W.W. 2002. Steller's eider spring migration surveys, southwest Alaska, 2002. Unpublished report. U.S. Fish and Wildlife Service, Migratory Bird Management Office, Waterfowl Branch, Anchorage, Alaska. U.S. Fish and Wildlife Service. 2000. Service Interim Guidelines For Recommendations On Communications Tower Siting, Construction, Operation, and Decommissioning. http://migratorybirds.fws.gov/issues/towers/comtow.html T:\s7\2005 sec 7\E11en\Denali Commssion\Quinhagak_windpower NLTAA.doc 3 LL W T W Q W E O N U ug O O tc w VV' �tr O N O ti N yr M t0 O r' e0" err h T �O w N vt t0 N N tC r err O t0 is h en 90 N SD 0 w w O O O w IV vs M O r — co r yr C O i0 C O aw m m C oaa) _6 E _ of c a)LL t rn 'd 0 Z o of r 0 00 C > O C O N m E U m d U a) U Ol C 'rL a ��LLI�USU N 0 U O O C. rn O O O w O O O w O V M vi O V w w N oy U C Ovto N U a) O a � m 0 cm c W d > C v E O7 m N E 8 U N C .O E U CL N rn?; U U O o C7 Q Q in rn EL v o •c o Co U N C 2 rn N E 0 U U C C C 0 0 0 aa)d(D RESOLUTION 4037 Delegations of Authority from the Board of Directors Tothe President A CEO WHEREAS, the policy for delegation of authority from the Board of Directors to the General Mawtgor has been reviewed; and WHEREAS, the title of General Manager has. been cbwgM to President & CEO and this change has been made in the policy noted above. NOW, THEREFORE, BE IT RESOLVED that theattached updated policy for delegation of authority from. the Board of Directors to the President & CEO is approved, Certification 1, Julia A. Walker, Secretary, do hereby certify that the above is a true and correct excerpt from the minutes of the meeting of the Boitrd of Dir6ctors of the Alaska Village.Electric Cooperative, Inc., 4831 We Street Anchorage, Alaska 99503, on the Stli day of May 2000, at which meeting a quorum was pre ; sent. Q] Julia . Walker, S6cretary tasla Village Electric Cooperative, Inc, 2001.10 ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. Delegations of Authority from the Board of Directors to the President & CEO L OBJECTIVE .. _.. _ .. <; �.,,:. .'a de%ne tithe: delegatzons,of authority and : esponsibzlities :.from.:theBoard of .Directors to Mthe President and Chief Executive Officer to enable him/her to adequately direct the operations of Alaska Village Electric Cooperative, Inc. and to report to the Board on the results achieved. II. POLICY A. Planning 1. Policies To formulate, with the staff as appropriate, the policies of Alaska Village Electric Cooperative to be recommended by the President and Chief Executive officer to the Board of Directors for their consideration. Such policies shall be reviewed by the President and Chief Executive Officer at least once a year and a recommendation made to the Board on any revisions required. 2. To develop, with the staff, the viewpoints, objectives and goals of Alaska Village Electric Cooperative and to review periodically these objectives and goals, as well as the results achieved, with the Board. 3. Long and Short -Range Plans To conduct studies with the staff and outside consultants, if necessary, and recommend to the Board short and long-range plans, including plans in such areas as system studies, engineering work plans, power requirements and load forecasts, financial forecasts, energy management, member and public relations, construction, facilities, etc., and to report to the Board on results compared to such plans. 4. Membership Meetings To develop, with the staff, plans for annual and other meetings of Alaska Village Electric Cooperative, and to make appropriate recommendations to the Board. 5. Work Plans and Budgets To formulate, with the staff, annual work plans and budgets for Alaska Village Electric Cooperative and recommend them to the Board for their consideration, and to provide detailed quarterly reports on revenue, expenses and other results compared to such plans. 6. Legislation To analyze and determine, with the Board and with the staff and in coordination with organizations such as Alaska Rural Electric Cooperative Association (ARECA) and the National s' • Rural Electric Cooperative Association (NRECA), state and federal legislative and regulatory matters to be proposed, supported or opposed consistent with Cooperative goals and philosophy. B. Organization 1. Organization Structure with the staff as appropriate, the organization structure best suited to carry out the overall objectives of Alaska Village Electric Cooperative within the limitations of the budget. b. To determine, with the appropriate staff members, the need for additional positions, the transfer, reassignment, or elimination of present positions, and to effect such changes, provided they are within the limitations of the personnel costs of the approved budget. 2. Selection of Personnel a. To develop or approve standards and qualifications for use in recruitment, transfer, and promotion of personnel. Such standards and qualifications should meet all federal and state legal requirements. b. To select, appoint, transfer, promote, demote, discipline and terminate personnel. 3. Training a. To ensure that the staff members are trained in accordance with the qualifications and requirements of their positions. b. To initiate and promote, through appropriate staff, training programs for all personnel within the limitations of the approved budget, including sending personnel to training programs outside the organization. 4. Performance Appraisals c. To appraise, at least annually, the performance of immediate staff members and to 'counsel with them and assist them to develop and improve. d. To ensure that a performance appraisal program is established and carried out for all personnel and that adjustments for those outside the bargaining unit are based on merit. 5. Position Descriptions To ensure that written position descriptions and job specifications are prepared and reviewed as necessary for all personnel. 6. Fringe Benefits To administer or approve activities and actions with respect to annual leave, holidays, and other fringe benefit programs for the personnel within established policies and within the limitations of the budget. A report shall be presented annually to the Board or committee of the Board ( describing the various benefits and employee and employer contribution, if any, and what percent fringes are of payroll. 7. Consultants e. To recommend to the Board the employment of general counsel and independent auditors, and contracts and agreements for their services with the committee making an appropriate f. To select and appoint other outside specialized consultants, and to negotiate contracts or agreements for services of such specialized consultants, within the limitations of the work plan and budget, and to advise the Board of actions taken. g. To report to the Board periodically on services provided and the fees received by principal consultants. 8. Wage and Salary Administration h. To develop wage and salary policy and present it to the Board for approval. i. To determine all salaries, except the President and Chief Executive officer's, within the Board approved wage and salary policy and within the limitations of the budget. A report is to be provided to the Board annually an the administration of the wage and salary policy. 9. Labor Relations j. To negotiate, with or without consulting assistance, labor contracts and make appropriate recommendations to the Board. k. To administer the approved labor contract and. see . that the appropriate supervisors understand the provisions of the contract and its administration. C. Operations 1. Overall Administration a. To direct the day-to-day operations and activities of Alaska Village Electric Cooperative except as specified otherwise by the By -Laws or the Board; to delegate authority to immediate staff; to authorize further delegation of authority to any level of management with full recognition that the President and Chief Executive Officer cannot be relieved of overall responsibility or accountability. b. To manage operations of Alaska Village Electric Cooperative in accordance with the policies of the Board and in accordance with policies and procedures of RUS and other lending institutions; as well as applicable federal, state, and local laws. c. To designate an appropriate person to serve as Acting President and Chief Executive Officer in an extended absence of the President and Chief Executive Officer. In case the President and -Chief .Executive .�O�cex. becames.,�incapacitaxed, ;.,the .:Assistant-�1'zeszdeni:�and :Chief.... �......::. . Executive Officer shall serve temporarily as Acting President and Chief Executive Officer until the Board of Directors takes appropriate action, at a meeting to be convened as soon as possible. d. To ensure that staff advice and assistance is provided to the Board and its committees, and to participate in the deliberation of these committees as requested or required e. To accept invitations to participate in or designate other staff members to participate in national, regional, state, and local meetings which further the best interests of Alaska Village Electric Cooperative, within the limitations of Board policy and the approved budget. Participation by the President and Chief Executive Officer in such activities that require considerable time over a sustained period requires the approval of the Board The President and Chief Executive Officer's serving on the board of other organizations shall be reported to the Board. f. To serve as the authorized spokesperson for Alaska Village Electric Cooperative on matters and to keep the Board up-to-date and well informed on such matters. g. The President and Chief Executive Officer shall take all necessary steps in the event that the Cooperative is served with legal process to protect all interests of the Cooperative with respect to such litigation and such matters shall be brought to the attention of the Board at the next scheduled meeting. 2. Membership Services To direct membership services in such areas as, but not necessarily confined to, public and member relations, load management, energy conservation, communications, and research as authorized by the Board I 3. Legislation 1. To develop and carry out, in coordination with organizations such as ARECA and NRECA, and within expressed Board philosophy, a legislative program furthering Alaska Village Electric Cooperative's objectives and policies. Such a program will include, but not be limited to, research, preparation, and presentation of testimony before appropriate committees, consultation with members of Congress, the State Legislature, and state and federal .,..xw administrative;,and-regulatory agencies .-==�,..:.. .. ...... n 4 m. To participate with allied groups to obtain their increased understanding and support of Alaska Village Electric Cooperative's legislative and regulatory objectives and programs. 4. Financial n. To make expenditures in accordance with the approved budget, including approval of non - budget items up to $100,000 or all non -budgeted items which, in his judgment, are vital to effect unanticipated emergency maintenance or repairs. Non -budgeted items exceeding $100,000 which are not items vital to effect unanticipated emergency maintenance or repairs, must be presented to the Board for approval. o. To invest or reinvest funds, cash investments when due, and cash government bonds, when and if necessary to protect Alaska Village Electric Cooperative's cash position and to carry out an effective cash management program. Investments will generally be made in CFC securities, in federal government insured or guaranteed securities or in other securities approved by the lending agencies. p. To authorize and approve the travel expenses of personnel except the President and Chief Executive officer's on company business within the limitations of the budget and within established policy. Such expenses shall be supported by itemized expense accounts with receipts attached, as appropriate. Expenses of the President and Chief Executive Officer will be reviewed by the Secretary/Treasurer. q. To approve account systems, procedures, statistics, and types of reports necessary for sound financial management and to meet the requirements of lending and regulatory agencies and for necessary control information required by the Board. r. To purchase or lease all equipment, vehicles, hardware, furniture, materials, and supplies within the guidelines of the budget. All purchases shall comply with RUS policies or procedures. s. To negotiate contracts for construction in accordance with RUS procedures. The contracts will be awarded in accordance with RUS procedures so construction completed can be reimbursed from loan funds without delay. t. To execute and deliver purchase orders or contracts for projects previously approved by the Board. u. To approve and sign changes under contracts previously approved by the Board and RUS if under $50,000. Those changes in excess of $50,000 are to be reported to the Board at the next Board meeting and all changes are to be approved by RUS if appropriate. v. To authorize individual memberships in civic clubs and organizations in which he/she thinks of him/herself or staff members would be beneficial and to authorize payment of dues by Alaska Village Electric Cooperative within the limitations of the budget. Professional registration fees will only be paid for registration in the State of Alaska, if such registration is desirable or required. w. To execute and delivery on behalf of Alaska Village Electric Cooperative agreements essential to the management of the Cooperative,_ such as affidavits, agreements,_ and leases to implement Board actions. x. To negotiate franchises and execute all petitions and documents in relation thereto; to acquire by purchase or lease all easements and power plant sites and execute, deliver and accept all documents relating thereto; to execute and deliver all environmental studies and reports; to make application for all permits relating to the operations of Alaska Village Electric Cooperative's design, route, and determine the site for all facilities. y. To perform all acts necessary or incidental to the management of the operations of Alaska Village Electric Cooperative, unless such acts are specifically reserved to the Board pursuant to law, and Articles of Incorporation, the By -Laws, or policies. 5. Controls a. Operations To submit periodic and special reports to the Board on conformity of operations with approved policies and programs; to recommend any revisions requiring Board approval and to direct any remedial action required. b. , Finances To submit periodic and special financial reports to the Board to keep them informed of Alaska Village Electric Cooperative's financial position and conformance to financial plans and forecasts, and to see that all persons having access to cash or responsible for purchasing of materials are properly bonded in accordance with all requirements of the lending agencies. c. Budgets To report quarterly to the Board on revenues and expenditures compared to budget. To recommend any revisions required, and to direct any necessary remedial action. d. Annual Financial Audit To participate with the Board in the review, with the auditor present,. of the annual financial audit and management letter and to direct any remedial action required and to ensure that the management letter, along with the Audit Report, is sent to each Board member prior to the meeting at which they are to be discussed. e. Materials Management 1. To determine the amount of and establish proper control of all physical inventories to minimize investment in inventories needed to meet operating and construction needs. 2. To ensure that a system is established to accurately account for all materials used. " f. Member Complaints To submit periodically to the Board an analysis of member complaints and to take any corrective action required or to recommend appropriate revisions in Board policy. g. Reliability of Service To submit annually to the Board a report on service reliability and any remedial action taken. h. By -Laws To report to the Board on annual review with the General Counsel of the By -Laws and to recommend any revisions required. i. Availability of Power Supply To report periodically to the Board on load growth compared to the power requirements studies and to recommend plans to meet anticipated growth to ensure an adequate and reliable supply for the members at the lowest possible cost consistent with sound business and management practices. j. Rates To continually study power and other costs compared to projections and to recommend to the Board, as far in advance as possible, any changes in retail electric rates necessary to maintain financial strength and stability and to meet all requirements of lending and regulatory agencies. k. Construction To review construction practices with appropriate staff to make sure projects are being constructed in accordance with RUS policies and procedures so that reimbursement for completed construction can be obtained promptly. 1. Internal Auditing To independently assess the adequacy, effectiveness and efficiency of the system of control within the organization and the quality of ongoing operations against policies and procedures established by management and/or the Board, and rules of RUS and other lending institutions; as well as applicable federal, state and local laws. IV. RESPONSIBILITY A. The President and Chief Executive Officer shall report to the Board periodically on how these delegations are being carried out. The Chairman of the Board shall be kept appraised of all major issues on a regular basis between all Board Meetings. The President and Chief Executive Officer may make further delegations to his staff as required. B. The Board is responsible for approving any changes in the delegations to the President and Chief Executive Officer. C. The Chairman shall be responsible for seeing that the performance of the President and Chief Executive Officer is appraised prior to his/her anniversary date each year by the Executive Committee of the Board and that a report is made at a subsequent meeting to the full Board, on the results of such appraisal, and that the results of such appraisal are discussed with the President and Chief Executive Officer. Bate Adopted: 3-23-.92 Resolution # 92=16 Date RepisS4:. 5-05-00 Resolution # 00"37 ATTEST: I walker, Secretary 1 �,•�� o$tafg of '�taskx P'mpariauat of 4Saatotarrs ............................... _............ _...... ...._.._._........_.._...._.._..._.._ ._......... _........... _. _ 3i11t�11 CERTIFICATE The undersigned, as Commissioner of Com¢nerce of the State of Alaska, and custodian of corporation records for said State,. hereby certifies that he has compared the annexed copy of Articles of Incorporation of ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.. a corporation organized under the laws of the State of Alaska, with those on file in this office, and that the same is a. full,. true and correct copy of said Articles of Incorporation as filed in this office IN TE371MWY WHEREOF, i have haNmb mat my hmmd and affixed my otnala] seal, at Jimmu the Capital, thb _a.5.t ... .: do ... Q.c ?r __ __... —Am. M-19. z ..� W. L. KUBLEY CO3DESSIONM of COMMERCE i it � • • _...o .............:............r.......... ZlSfftXP..-== ... ..::..:.::,•tee x.>; _ Tha undersigned, as Commissioner of Commoro& of tho ::tote of Alas}:a; alld custodian of corporation records for said Stats, haraby certifies thaj: on the 26th day of octoL�or, 1967, the. ALASIM VIi"Gu L'LGC'1'RIC COOPEP.ATIVE, INC. filed in this office its .lrticles of Incorporation as a non-profit cooperative organic:od under. t2:e laws of the State of Alaska's ClOctric and Ttlopnone.Cooperativo :.ct. 26th October 67 'WO&GE SHAM= �rr.t:n ran nrca ARTICLES oP Ire ukrawTIOtJ Djr,m W OF cow"WA STATE OF ALAM UP ALASKA VILLAGE liLECIRIC COOPERATIVE, INC. Ye, the undersigned, being natural person of the age of ' twenty-one years or more and citizens of the United States of Lwerica and residents of the 'State of Alaska, do hereby associate >urselves together for the purpose of forming a non-profit coop- :rative association under and by virtue of the Electric and Celephone Cooperative Act of 1959, Chapter 93•, Session Laws of Llaska, 1959, A.S.. 10.25.010 - 650, and all laws amendatory :hereof and supplemental thereto, and do hereby adopt the follow- .ng articles of association: ARTICLE I Yrie name of the Corporation is ALASKA VILLAGE ELBCTPIC OOPERATIVE, INC. ARTICLE Ir The object or objects and purpose or purposes for which Corporation is formed are: (a) .To generate, manufacture, purchase, acquire and accumulate electric energy for its members and to transmit, distribute, furnish, sell, and dispose of such electric energy to its members and others, when practicable and permissible, and to construct,•erect, purchase, lease as lessee and in any manner acquire, own hold, maintain, operate, sell, dispose or, lease as lessor, exchange and mortgage plants, buildings, works, machinery,.- supplies, .apparatus, equipment, and electric transmission and distribution lines or systems• necessary, convenient or useful for carrying out and accomplishing any or all of the foregoing purgoses; (b) To acquire, own, hold, use, exercise and, to the extent permitted by law, to sell, mortgage, pledge, hypothe- cate and in any manner dispose of 'frsinchise;' rights, privileges, licenses, rights of way and easements necessary, useful or appropriate to accomplish any or all of the purposes of the Corporation; (c) To purchase, receive, lease as lessee,.or in.any other manner acquire, own, hold, maintain, use,•convey, sell, lease as lessor, exchange, mortgage, pledge or other- wise dispose of any and all real and personal property or any interest therein necessary, useful or appropriate to enable the Corporation to accomplish any or all of its purposes; (d) To assist its members to wire their premises and install therein electrical and plumbing.appliances, fixtures, machinery, supplies, apparatux and equipment of any and all kinds and character (including, without limiting the generalitydf the foregoing, such as are applicable to.water supply and sewage disposal) and, in connection 'therewith and for such purposes, to purchase, acquire, lease, sell, distribute, install and•repair electrical and plumbing appliances, fixtures, machinery, supplies, apparatus and equipwent of any and all kinds and•char- acter (including,, without limiting the,genera.lity of the .foregoing, such as are.applicable to water supply and sewage disposal) and to receive, acquire, endorse, pledge, guarantee, hypothecate,'transfer.or otherwise dispose of notes and other evidences of indebtedness and all security therefor; -2- (e) To ::urrov money, to make anu issue nonns, notes anu other evidences of indebtedness, secured or unsecured, for money borroiecd' orin'payiW t fnr'prope"rty acguire3; or for any of the other objects or purposes of the Corporation; to secure the payment of such bonds., notes or other evidences of indebtedness by mortgage or mortgages, or deed or deeds of trust upon;, or by the pledge of or other lien upon, any or all of the property, rights, privileges or permits of the Corporation, wheresoever situated, acquired or to be acquired; (f) To do and perform, either for itself or its members. any and all, acts and things, and, to have and exercise any and .all powers, as may be necessary or convenient to accomplish any or all of the foregoing purposes or as may be periaitted, by the act under which the'Corp- oration is formed. ARTICLE Ill Section 1. The Corporation is formed without any purpose of pecuniary -profit to itself and shall have no capital stock. Section 2. Each u.ember shall be entitled to one (1) vote knd no more upon each .natter submitted to a. vote at a meeting of the members. At all meetings of the members at which a quorum la present, all questions shall be decided by a vote of a majority rf the members voting thereon in person., except as otherwise authorized by law and provided in .the. Bylaws. If a husband and ife hold a joint membership, they shall jointly be entitled to ne (1) vote and no more upon each matter submitted to a vote t a meeting of the members, -3- ARTICLE IV Section 1. Bxcept as limited olrewhere in these Articles 'or n the Bylaws of the corporation, the business and affairs of by a Board of Directors; and the Officers of the corporation shall be a ?resident, a Vice -Pr esident, a Treasurer, and a secretary. The offices of Secretary and Treasurer may be held y the same person. Section 2. The officers of the corporation shall be elected annually, by and from the !3c:ard of Directors. When a person holding any such office cease: to be a director-, he shall cease to hold such office. Any:officer may be removed from office and is successor elected in the manner prescribed in the Bylaws. Section 3. The number of directory of the corporation shall be not less than five (5), each of whom shall be a member of the corporation or of another cooperative which is a member therecf. The Bylaws shall prescribe the number of directors, their qualifications other than those prescribed by law, the manner of.holding meetingx of the Board of Directors, and of electing successors to directors who shall resign, die or other- wise be incapable of acting. At each annual meeting of the members, directors shall be elected by the members to fill the position of directors whose terms have expired or are expiring, to hold office during the term to which they are elected or until their successor shall hive been elected and qualified. The Bylaws shall provide for the removal of directors from office and for the election of their successors. Section 4. The Bylaws may provide for the division of the territory served or to be served by -this corporation into two or more districts'for any purpore', includin „ with limitation, -4- the nomination and election of directors and the election and be members, may noninate and elect directors. 'The Bylaws shall prescribe the boundaries of the districts or the manner of estab- lishing such boundaries, the manner -of changing such boundaries, and the manner in which such distact shall function. No member at any district meeting and no district delegate at any meeting shall vote by proxy or by mail. Section 5. Directors shall not receive any salaries for their services as directors and, except in emergencies, shall not receive any salaries.for their service in any other capacity without the approval of the members. The.bylaws may, however, prescribe a fixed fee for attendance at each meeting of the Board of Directors and may provide for reimbursement cf actual expenses of attendance. 9RTYCLE V Section 1. DMembership in the Corporation shall.be evidenced by a certificate of membership which shall be in such form and shall contain such provisions as shall be determined by the board of directors not contrary to, or inconsistent with these articles of association or the bylaws of the Corporation. Such certif icate shall be signed by the Preaident and by the Secretary of the Corporation and the Corporate seal shall be affixed there -to. Section 2. No membership certificates'shall be issued for less than the membership fee fixed in the bylaws, nor until such etibership fee has been fully'paid for in cash, and such payment as been deposited with the treasurer. Section 3. In case of a lost, destroyed, or mutilated ertificate, a new certificate may be issued therefor upon such erms and such indemnity to the Corporation as the board of irectors may prescribe. -5- Section 4. Bylaws may be adopted, amended or repealed by 'he affirmative vote of a majority of those members voting thereon t a meeting of the members. The notice of such meeting ah'all ave contained a copy of the proposed adoptions, aa,endments or repeal. Section 5. The Dylaws.of the corporation ray define and fix Cher duties and responsibilities of the mewbers and prescribe other terms and conditions upon whch members shall be admitted o and retain membership in the corporation, 'make provisions for annual and special meetings of. members and -directors and notices thereof, provide for methods of voting, quorum requirements,_ and any other natters relating to the internal organization and management of the corporation, provided that such provisions .shall not be inconsistent with these Articles of Incorporation or the laws of the State of Alaska. ARTICLE VI The tern of existence of the corporation shall be perpetual. ARTICLE VII The principal place of.business of the corporation shall be at Anchorage , Alaska. ARTICLE vIIT The corporation may mend, alter, change or repeal any provision contained in these Articles. of Incorporation in the manner now or pereafter prescribed by law'. ARTICLE IX The names and address of the incorporators who shall -con- stitute the first board of directors are as follows- -6- JAMPS HOPRM•AN, Anchorage, Alaska DIANE S. CARkENTL'R Stony Raver, Alaska WILLIAM L. HENSLISY Kotzebue, Alaska DtiVIll"L-"'I�E�TSiLSON�: ",� fluke"Bay, Alaakz�' MORRIS S. THOKPSCN Juneau, Alaska IN WITNESS IWMRHOF, wie have hereunto Iset our hands in adruplidate this day of�C�, 1967. J '1c MMU is R STATE OF ALASKA ) ss. / Zfary TH:i5 CERTIFIES that on this (lday of1967, before me, the undersigned, a Public in an or Alaska, duly commissioned and sworn as such, personally appeared JAMES HOPFMAN, DIANE S. CAR?ZM%R, l}ILLIAk L. HENSL&Y, DAVID L. PZMRSON and 140ILRIS S. TIMPS04, known to me and to me known to be the identical persons who executed the above and foregoing execuu�n theOF reof to be0theirdfreeyandLvoluntary acted to eandhdeed for the uses and purposes therein set forth. iflT`NESS my hind and official seal the day and year herein - Above last written. NOTA�R ; an n or A a` S a i My �cmmission expires: -7- P�kge or R.1i. �� (907) 5 616 515 Faa9% 55"166 City Of Quiff cry C-01Rnail P.O. Ihm 90 655 (9w) � Fan 5S641540 Resolution supporting renewable energy generation in Quinhagak Alaska Resolution No. 08-09-16 WHEREAS The Native Village OfKwinhagak (NVK) is a federally recognized Tribe organized pursuatt to the IOAfim Reorganized Act of June 18, 1934, as amended by the acts of June 15, 1935 and May 1, 1936; and WH.l= REAS the governing body of the Native Village of Kwinhagal: IRA Council is a seven member council which is fully authorized to act for and behalf of its tribal members arising under the Self-Detetmination Act of 1975, Public Law 93-638 as amended, 25 U.S.C. Et. Seq.; and WHERFAS the City of Quinhagak is a second class city in the State of Alaska and the municipal government for the community of Quinhagak; and WHEREAS the NVK IRA Council and City of Quinhagak City Council administrations are consolidated under the City/IRA Memorandum of Agreement and the councils, reco.9me that the high cost of electricity and fuel poses an undue .hard skip on the residents, small businesses and community facilities in Quinhagak; and WHEREAS the NVK IRA Council and City Of Qmnhapk City Council together, support the development of a safe ,and reliable, renewable energy system, such as wind, turbines, that is environmentally sound and sustainable, in Quinhag,*, Alaska, and WHEREAS the NVK HLA Council and City of Quinhagak City Council further support efficient energy systems that reduce the cost of electricity to the community. NOW, THEREFORE, BE 1T RESOLVED, that the Native Village of Kwinhagak and City of Qukhagak City Council has determined the development of a renewable energy system to be a. priority for the community. The foregoing resolution was duly considered and adopted at a meeting by the Native Village URA council and the City if Quinhagak council, in Quinhagak, Alaska on the 29th day of September by a vote of 10 for, and 4 against, and 0nabs " ,g. Wassilie Bavilla (President) Annie CtWeIW (Se ) ohn Sharp (Mayor Grace Friendly (Secretary) Ngttfty V*Mga of Qu�i�nhha R.A. COP.m 149 UAGil Quinhftak Aiaeha 99655 490616r, F&= 556-81.66 city of Quinhazak city C4uaiaii (9m) Quinhagak. iaa`�o Resolution supporting renewable energy generation in (MnhaaA Alaska Resolution No. 08-09-16 WHEREAS the Native Village of KwiUhagak (NVK) is a federally recognized Tribe organized pursuant to the Indian Reoxganized Act of June 18, 1934, as amended by the acts of June 15, 1935 and May 1, 1936; and WHEREAS the governing body of the Native Village of Kwinhagak IRA Council is a seven member council which is fully authorized to act for and behalf of its tribal members arising under the Self-Deteratunation Act of 1975, Public Law 93-638 as amended, 25 U.S.C. Et. Seq.; and WHEREAS the City of Quinhagak is a second class city in the State of Alaska and the municipal government for the community of Quinhagak; and WHEREAS the NVK IRA Coran6l and City of Quinhagak City Council administrations are consolidated under the City/IRA Memorandum of Agreement and the councils, recognize that the high cost of electricity and fuel poses an undue hardship on the residents, small businesses and Community facilities in Quinhagak; and SEAS the NVK IRA Council and City of Quinhagak City Council together, support the development of a safe and reliable, renewable energy system, such as wind turbines, that is environmentally sound and sustainable, in Quinhagak, Alaska; and, WHEREAS the NVK IRA Council and. City of Quinhagak City Council further support efficient energy systems that reduce the cost of electricity to the community. NOW., THEREFORE, BE rJr RESOLVED, that the Native Village of Kwinhagak and City of Quinhagak City Council has determined the development of a renewable energy system to be a priority for the community. The foregoing resolution was duly considered and adopted at a meeting by the Native Village IRA council and the City if Quinhagak council, in Quinhagak, Alaska on the 29th day of September by a vote of 10 for, and 0 against, and 0 abs g, q Wassilie Bavilla (President) Anii& Ch e%)a d (Se ) ohn Sharp (Mayor Grace frrien (Secretary) 2005257 ua United States Department of the Interior Its 11 FISH AND WILDLIFE SERVICE R>�r ,.� Anchorage Fish & Wildlife Field Office 605 West 4 h Avenue, Room G61. ` EP in reply refer to Anchorage, Alaska 99501-2249 AFWFO ' - if C September 8, 2005 W'' 'Brent Petrie Alaska Village. Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503 Re: Quinhagak Wind Generation Facility (consultation # 2005257) Dear. mr. Petrie, On August 16, 2005, we received your letter requesting concurrence with your determination that the installation and operation of a wind power generation facility in Quinhagak, Alaska is not likely to adversely affect threatened or endangered species or their critical habitat. This project, which is funded by the Denali Commission, proposes to install three, Northwind 100TM turbines, preceded by the installation of a NRGTM meteorological tower (MET) to monitor weather parameters. The NRGTm MET tower is a 30 meter tall, guyed tower with anemometers to assess wind resources at the location of a proposed wind power facility. The Alaska Village Electric Cooperative (AVEC) plans to install bird flappers and/or bird scare tape on the guy wires to increase the visibility of the wires to passing birds. The MET tower is to be installed in September, 2005. Northwind 100TM wind turbines have a windswept area of 284m2 (3057ft ) and are erected on tubular towers that are self supporting (i.e., no guy wires are required). Three blades rotate at a speed of 45-69 RPM, and the tip of the blade will reach down to approximately 20.7 meters (68 feet) above ground level. An approximately 305 meter roadway will be constructed to access the turbines. A minimal length of new power transmission line will be installed (60 meters maximum). The North American breeding population of Steller's eiders (Polysticta stelleri), listed as threatened under the Endangered Species Act (Act) in 1997, migrate along the shorelines of western Alaska during spring as they are heading to their breeding grounds to the north. These sea ducks are believed to migrate just off -shore, following the coastline to their destination. Aerial survey data indicate that during spring, Steller's eiders congregate in small flocks (1-50 individuals) off the Quinhagak coastline (Lamed 2002). Reportedly, Steller's eiders, on occasion, veer away from the coastline and fly inland, particularly during periods of low visibility such as fog. Additionally they tend to migrate at night, fly relatively low over water and land (approximately 9 meters), and fly very fast (about 56 kph). These factors leave them very susceptible to striking on -land structures, such as towers, wires, and buildings, when they stray inland. Furthermore, because red solid or blinking lights may actually attract birds to the At TAKE PRIDE-ft;,�- NAM E R i Mr. Brent Petrie structures that avionics are trying to avoid, the Service developed the following recommendation with regard to lighting towers: unless.otherwise required by the FAA, only white (preferable) or red strobe lights should be used at night, and these should be the minimum number, minimum intensity, and minimum number offlashes per minute (longest duration between flashes) allowable by the FAA. The use of solid red or pulsating red warning lights at night should be avoided. Current research indicates that solid or pulsating (beacon) red lights attract night - migrating birds at a much higher rate than white strobe lights. Red strobe lights have not yet been studied (U.S. Fish and Wildlife Service 2000). The Service believes that the probability that an eider will collide with either a turbine blade is low, due to the height of the lowest tip of the blade (20.7 meters) compared with the average height that an eider flies (9 meters). Further, because low numbers of Steller's eiders have been observed near Quinhagak during spring and fall aerial surveys, the guy wires of the MET tower will be marked, the MET tower will be installed for two years or less, the self supporting nature of the turbine towers; ai-the al length -of new power-iine-proposed; the Service believes the probability that a Steller's eider will strike the turbines is so low as to be discountable. Therefore, the Service concurs with your determination that the development of a wind power generation facility in the village of Quinhagak is not likely to adversely affect threatened Steller's eiders or their critical habitat. Moreover, we recognize the beneficial aspects of this proposed project; these turbines are predicted to displace approximately 55,000 gallons of diesel per year. As per a communication with Eric Marchigiani on September 7, 2005, the power plant operator in Quinhagak will survey the grounds surrounding the wind turbines on a daily basis to monitor bird -strikes. If at any time during the construction or operation phases of this project, Steller's eiders are observed in the vicinity of the MET tower, turbines, or if a collision is documented, the Service should be notified immediately and consultation should be reinitiated. Preparation of a biological assessment or further consultation under section 7 of the Act regarding this project is not necessary at this time. The above consultation relates only to federally listed or proposed species and/or designated or proposed critical habitat under our jurisdiction. It does not address species under the jurisdiction of National Marine Fisheries Service, or other legislation or responsibilities under the Fish and Wildlife Coordination Act, Clean Water Act, National Environmental Policy Act, Migratory Bird Treaty -Act (MBTA), or Bald and Golden Eagle Protection Act. -2- Mr. Brent Petrie Migratory Bird Treaty Act As you know, another of the Service's Trust Resources, migratory birds, can suffer significant mortality from collisions with towers and associated infrastructure. The MBTA (16 U.S.C. 703- 712), prohibits the taking, killing, possession, transportation, and importation of migratory birds, their eggs, parts, and nests, except when specifically authorized by the Department of the Interior. While the MBTA has no provision for allowing unauthorized take, it must be recognized that some birds may be killed at structures such as wind turbines even if all reasonable measures to avoid it are implemented. While it is not possible under the MBTA to absolve individuals or companies from liability if they follow recommended guidelines, the Division of Law Enforcement and Department of Justice have used enforcement and prosecutorial discretion in the past regarding individuals or companies who have made good faith efforts to avoid the take of migratory birds. We recommend that you review the Service Interim Guidance on Avoiding and Minimizing Wildlife Impacts from Wind Turbines(bM://www.fws.gov/r9dhcbfa/wind.pdf). Conclusion This concludes the section 7 consultation on the Quinhagak Wind Generation Facility. Thank you for your cooperation in meeting our joint responsibilities under section 7 of the Act. If you have any questions, please'contact me at (907) 271-1467. In future correspondences regarding this consultation please refer to consultation number 2005257. Sincerely, Ellen W. Lance Endangered Species Biologist Cc, Denali Commission Literature Cited Lamed, W.W. 2002. Steller's eider spring migration surveys, southwest Alaska, 2002. Unpublished report. U.S. Fish and Wildlife Service, Migratory Bird Management Office, Waterfowl Branch, Anchorage, Alaska. U.S. Fish and Wildlife Service. 2000. Service Interim Guidelines For Recommendations On Communications Tower Siting, Construction, Operation, and Decommissioning. http://niigratorybirds.fws.gov/issues/towers/comtow.htm] T:\s7\2005 sec 7\E11en\Dena1i Conumsion\Quinhagak_windpower NLTAA.doc 3 Attachments 1. Grant Budget Form 2. Detailed Budget 3. Delegation of Authority Resolution 4. Delegation of Authority Defined 5. Certificate of Incorporation 6. NVK/City of Quinhagak Joint Resolution Endorsing Renewable Energy 7. AVEC Project Management Bios 8. AVEC and Qanirtuuq Lease Agreement 9. U.S. Fish and Wildlife Consultation W O7 CD a C1 w m 77 C3D CD c� su Cl to a N CD a C 'L7 O CS N CD C7 CD d M I iy 5' CD 0 N d C' Cl) 4 Average Generating Efficiency (kWhr/gal) O O � � O N O N C71 W C W '� � A A � ..► tr _a CA .a � O> V ..� .a �4 OD .a .a C1D tD O p O O O O O :TI CDO O O O O O p p O O O 0 o a CD 6~rt p Cl) o N o .a y C �. C Ci W j "C 1 N C o ; a o a .�i• .O CD N CA rt ; CD CD O O -� -. -4 w� oy o� ci 03 .a CO C IV IN CL ;O 's CAW _O CD NO CD � = N C rt O O N Cr (n Co v N `o 0 ;wy wz aoioto lD V i� CD A O A Z; 7 a O C � N O t07f V y C 3 . r O C" :► 0 rt 7 O O pr W N tos N Q� C V O Cif Co AD to Co !' O VO •P O 0 o '� M N N � N p � N y r c A (j Co O W � N O N 0 is C1 CD A P. 0 W Co 1 J CD y V O W W O `a C N CD Q C a y CD < O a CD porn R m n CD 0 O m' n N a) I Hill � ! 00 §k 0-0 zc - _ | § 2 / - - ; \§S 17�� zcz m ± »7 Z 0 ° �\ � ` & no oc 0, 91S s _ &�co 40, ``�p - _ ! , X` �» \Po k/ ; I- _ ; 2 / §,4 > \ y 3 | E K e ��© ` § rx \ 87 Nat1w age or $ Quinhavk I.R� .A. P.o. Box 149 Quinhaklak Ab►ahm 9%65 (907) 6 816i5 Fay 656-UI66 City � ci � 9 "Juq k0 (907) ��Fam SS6-85540 Resolution supporting .renewable energy generation it Quinhagak Alaska. Resolution No. 08-09-16 WHEREAS The Native Village ofKwinhagak (NW) is a federally recognized Tribe organized pursuant to the Indian Reorganized Act of June 18, 1934, as amended by the acts of June 15, 1935 and May 1, 1936; and WHEREAS the governing body of the Nature Village of KKwinbagak IRA Council is a seven member council which is fully authorized to act for and behalf of its tribal members arising under the Self-DetetTnination Act of 1975, .Public Law 93-638 as amended, 25 U.S.C. Et. Seq.; and WHEREAS the City of Quinhagak is a second class city in the State of Alaska and the municipal government for the community of Quinhagak; and WHEREAS the NVK IRA Council and City of Quinhagak city Council administrations are consolidated under the City/IRA Memorandum of Agreement and the councils, recognize that the high cost of electricity and fuel poses an undue hardship on the residents, small businesses and community facilities in Quinhagak; and WHEREAS the NVK IRA Council and City of Quinhagak City Council together, support the development of a safe and reliable, renewable energy system., such as wind, turbines, that is environmentally sound and sustainable, in Quinhag* Alaska; and WHR,EAS the NVK, IRA Council and City of Quinhagak City Council farther support efficient energy syste= that reduce the cost of electricity to the community. NOW, THEREFORE, BE IT RESOLVED, that the Native Village of Kwinhagak and City of Quinhagak City Council has deterniined the development of a renewable energy system to be a priority for the community. The foregoing resolution was duly considered and adopted at a meeting by the Native Village IRA council and the City ifQuinl a ak council, in Quinhagak, Alaska on the 29th day of September by a vote of 10 for, and 0 against, and 0 abs ' . g. ", e 1✓�,r� , ., r ,I_�JI M IM4 111,41 Wassilie Bavilla (President) Annie CtOeltid (Se' ) ohn Sharp (Msyor Grace 1{rien (Secretary) Quinhagak Pre -Conceptual Design Report Prepared for: Alaska Village Electric Cooperative Submitted: August 18, 2005 701 West 8th Avenue, Suite 400 1 Anchorage, AK 99501 (907) 257-1700 T . (907) 257-1795 F 8/16/2005 Executive Summary AVEC Quinhagak Pre -CDR NANA Pacific was responsible, in conjunction with Alaska Village Electric Cooperative (AVEC), for the development and execution of a Pre -Conceptual Design review for the community of Quinhagak, Alaska. The goal of this exercise is to ascertain community readiness for participation in the bulk fuel/power system upgrades amalgamated program with an explicit recommendation to AVEC whether to advance to the CDR stage. NANA Pacific recommends that the community of Quinhagak advance to the Conceptual Design Review (CDR) stage. By most accounts, the community of Quinhagak is a responsive community and AVEC should proceed in the CDR process. Throughout the data collection analysis, no significant obstacles emerged that would inhibit advancement to the CDR stage for the community of Quinhagak. There has been a site identified with site control currently being secured on the part of AVEC, and the community has contributed positively to these initial stages. To develop this recommendation, a site visit, review of program documents, review of secondary literature, and key informant interviews were undertaken and the data collectively analyzed by the project team. The following observations are noted: • Community Plan. The community plan of Quinhagak needs and should be updated to reflect evolving priorities. We suggest that the plan be monitored and reviewed upon completion to determine how operating the Bulk Fuel facility fits into the completed plan. • Lower Kuskokwim School District. The distance from the proposed site to the school's facilities is substantial and is an obstacle to cost-effective co -location. • Limited Power Inter -Tie Opportunity. There are limited opportunities for sub -regional energy projects and suggest that a single facility for Quinhagak be considered. • Wind Potential. To make the CDR stage more effective and efficient, we suggest looking into the possibility of utilizing wind turbines in Quinhagak. • Opportunity for Co -Mobilization. The community is expanding both the runway and terminal, along with sanitation and new housing developments. These projects offer a good opportunity for co -mobilization for more cost effective construction of the facility. NANAPacifiC 2135 8/16/2005 AVEC iQuinhagak Pre -CDR • Coordination/Collaboration with the Village Corporation. The type and nature of the collaboration with the village corporation needs to be clarified. Their bulk fuel facilities are relatively new and reportedly in good condition. NANAPaCia rC 3 / 35 8/16/2005 Table of Contents AVEC iQuinhagak Pre -CDR 1. Report Objective.........................................................................................................5 2. Community Leadership and Key Stakeholders.....................................................5 3. Demographics and Historical/Projected Fuel Use................................................5 4. Geographic and Physical Dimensions....................................................................6 5. Technology..................................................................................................................7 6. Community Infrastructure..........................................................................................7 7. Owner(s)/Operator Assessment..............................................................................8 8. Legal/Regulatory Assessment.................................................................................9 9. Project Sustainability.................................................................................................9 10. Strengths.....................................................................................................................9 11. Weaknesses..............................................................................................................10 12. Specific Recommendations....................................................................................10 15. Drawing.....................................................................................................................11 Listing of Tables Table 1. Community Key Contacts...................................................................................12 Table 2. Historical By Decade (US Census Data)............................................................13 Table 3. Historical By Year (DCRA/DOL Data)................................................................13 Table 4. Projected By Year (Based on AVEC Benchmark Recommendation Annual GrowthRate of 2.00%).....................................................................................................13 Table 5. Fuel Delivered- Historical (Yukon Fuel Company & Crowley Marine Services)I 14 Table 6. Fuel Projections.................................................................................................15 Table 7. Quinhagak Peak Load and Average Load/ %Change.......................................15 Table 8. Available Geotechnical Data Summary .............................................................16 Table 9. Distance between Communities........................................................................21 Table 10. Permit Requirements.......................................................................................32 Table 11. Regulatory & Agency Interface........................................................................32 Table 12. Reported Tank Farm Deficiencies.................................................................... 34 NANAPacifiC 4 / 35 8/16/2005 1. Report Objective AVEC lQuinhagak Pre -CDR This report is developed as a discussion of salient issues that emerged during the data collection process. Specific micro -data is found in the Quinhagak Pre -CDR checklist and secondary data attached to this document. There will be specific references made from the report to the checklist to facilitate review of the document. 2. Community Leadership and Key Stakeholders The majority of community services in Quinhagak are provided by the Native Village of Kwinhagak (NVK). NVK is the combined Village and City Council entity responsible for a variety of public and community services, including health and social service, community development programs, environmental, land and natural resources, and housing. They currently own tanks and plan to take part in the bulk fuel/power upgrades program. Qanirtuuq Inc., which is the village corporation, has a vital role in the community, they own and operate the native store and manage a fuel facility which supplies fuel to homes. The Lower Kuskokwim School District (LKSD) has a K-12 school in Quinhagak with 150 students and 12 teachers. The combined capacity of their fuel tanks is 42,200 gallons and is located in close proximity to the school. 3. Demographics and Historical/Projected Fuel Use Quinhagak is a relatively vibrant rural Alaskan coastal community with an active fishing industry. Quinhagak has grown steadily over the past 10 years increasing its population by 11 % during that timeframe. It is reasonable to expect increased population growth in the next 10 years compared to that of the last 10 years. Factors driving the community growth and development include a new housing sub -division to be built by HUD, new water and sanitation facilities to be built by Village Safe Water, and an upgraded runway to increase the amount of cargo exportation. In a recent ' Refer to section 1,6, 7,& 9 for information on key stakeholders. 2 Refer to Section 2 in the check -list. NANAP'aCifiC 5 / 35 8/16/2005 A VE'C (Quinhagak Pre -CDR RUBA (Rural Utility Business Advisor) report, it stated that NVK is stable and competent with an experienced staff. The report indicates that Quinhagak has a "green" light status and meets all Essential and Sustainability indicators. There were no reported incidences of fuel rationing in the community. 4. Geographic and Physical Dimensions Quinhagak is one of the more accessible communities due to its accessibility to the ocean and ocean barge service. Quinhagak is located on the Kenekotok River, less than one mile from the Bering Sea and approximately 71 miles southwest of Bethel. 4.1. Geotechnical Considerations Soil conditions throughout the community are important considerations during construction of any type of facility. According to Golder Associates, soil deposits are expected to be mostly fine sand and silt which is common of the Lower Y-K Delta. Permafrost is likely discontinuous and patchy. To determine exact soil conditions to use in the recommendation of foundation, a geotechnical survey should be done during the CDR stage. 4.2. Foundation Types Most of the buildings in Quinhagak are supported on post and pad foundations. There is a good supply of gravel in the community available from both the Calista Corporation and/or local land owners. As of May 2005, the price for gravel was at $1.80 per cubic yard. 4.3. Proposed Sites The community planning process identified a site which is within the area set aside for industrial development. This site is located on the west side of the community in the 13.8 acre industrial complex. This site was chosen locally because it is within the industrial development area with adequate land available and existing road access. Refer to the attached drawings for site selection. 3 Refer to section 3 in check -list. NANAPacific 6 / 35 8/16/2005 AVRC Quinhagak Pre -CDR 4.4. Sub -Regional Energy Planning Considerations There are limited opportunities for sub -regional energy projects, including power inter -ties. The analysis at this time suggests that a single facility for Quinhagak be considered. 5. Technology Major considerations regarding this step include: 5.1. Wind Potential According to the NREL (National Renewable Energy Laboratory), wind rating and potential in Quinhagak is good. 5.2. Power Inter -tie Distance to neighboring communities and the terrain suggests low feasibility for a power inter -tie. 5.3. Extraordinary Construction Considerations. Arctic Construction considerations (permafrost, weather, community isolation, logistics, etc) and the appropriate measure to minimize its impact are of concern for the community. 6. Community Infrastructure 6.1. Co -mobilization There are numerous opportunities for co -mobilization with other construction projects. The community is expanding both the runway and terminal, along with other projects to improve sanitation and to add new housing. 6.2. Logistical Obstacles Quinhagak has remained accessible in recent years for barge deliveries, with no reported delays or cancellations in ocean barge service. With the scheduled improvements of the new runway, Quinhagak will be able to accommodate cargo planes as large as a DC6. 6.3.Operations and Maintenance In a recent report by RUBA (Rural Utility Business Advisor), it concluded that the Native Village of Kwinhagak (NVK) is stable and competent in all aspects including Finance, Accounting Systems, Personnel Systems, Organizational NANAPacifiC 7135 8/1612005 AVEC 1Quinhagak Pre -CDR Management and Operation of Utility. The main operator for the water and sewer system has over 15 years of experience along with appropriate certifications. A monthly O&M report is given to a manager to review and check over completed maintenance on facilities. 6.4. Community Planning The community plan is unavailable at this time. Quinhagak is in the process of updating their community plan. 7. Owner(s)/Operator Assessment' Seven different owner/operators of the different tank farms emerged during the pre -CDR stage. 7.1. Native Village of Kwinhagak NVK is co -managing Alaska Village Electric Cooperative's (AVEC) Tank Farm. 7.2. Lower Kuskokwim School District The LKSD manages the school tank farms. Contacting LKSD is advised during the CDR phase to confirm their future plans for the tank farms. At this time, distance between the proposed site and the school are obstacles to co - locating. 7.3. Native Village of Kwinhagak The Traditional Council appears to be an influential community entity at this time and have expressed an interest in participating. 7.4. Qanirtuuq, Inc Along with fuel sales, the Qanirtuuq Village Corporation owns and operates the Native Store. 7.5. Other Owners The Moravian Church, A & C Market, and the National Guard Armory own tanks with significantly less capacity than those mentioned above. 4 Refer to section 7 in checklist. NANAP'acific 8135 8/16/2005 8. Legal/Regulatory Assessment AVEC Quinhagak Pre -CDR 8.1. Permitting The permits and regulatory interface include Alaska Fish and Game (AF&G), wetland permitting with the United States Army Corps of Engineers (USACOE), Fire Marshal, United States Environmental Protection Agency (USEPA), and United States Coast Guard (USCG). Refer to Section 8 in the questionnaire for more information. Work with U.S. Fish & Wildlife for wind turbines. 8.2. Facility Compliance No facility compliance issues were reported during the course of research. However, the Pre -CDR did not involve a full compliance inspection and review of facilities. 8.3. Contaminated Sites The only contaminated site involved Qanirtuuq, Inc.'s fuel tank, where approximately 4,200 gallons of gasoline were released on June 13, 1992. The tank farm was then relocated to a lined, bermed area in late summer, 1992. Cleanup was completed the end of summer of the year of the spill with approximately 300 cubic yard area of contaminated tundra remaining in a lined containment cell. 9. Project Sustainability In January RUBA released a status report for the Quinhagak community. RUBA reviewed Finances, Accounting Systems, Tax Problems, Personnel Systems, Organizational Management, and Operation of Utility for the Native Village of Kwinhagak. The report concluded that NVK showed stability and competency in all areas of operation. However, like many rural Alaskan communities, Quinhagak is experiencing revenue and cash shortfall. During the site visit, NVK was reviewing the previous year's audits and planning for this shortfall. 10. Strengths Discovered strengths for this project are: Native Village of Kwinhagak It is a motivated presence for community action in the community. NANAPacific 9135 8116/2005 AVPC iQuinhagak Pre -CDR • Wind Potential The coastal location and NREL Wind maps suggest excellent potential for Wind Generation. • Designated Industrial Area The community has designated a 13.8 acre parcel for industrial use. Site control is in the process of being secured within the context of this facility. This is a positive, viable area for the Bulk Fuel/Power System to be located. 11. Weaknesses Discovered weaknesses for this project are: • Community Plan. The community plan needs to be updated. • LKSD Role. The role of the LKSD needs to be clarified. 12. Specific Recommendations NANA Pacific recommends the following for this project: • Resolutions received from the Village Corporation. • Letter of Support from LKSD detailing their degree of participation in the amalgamated program. • Prioritization on the part of project stakeholders on proposed sites. • Secure an anemeoter for wind monitoring in the community. • Monitor sanitation and water system project development for co -mobilization opportunities. • Ensure that business plans are developed using a break-even analysis framework. • Allocate sufficient resources for maintenance and renewal during the business plan development phase. • Review tank farm facilities for ownership, capacity, and compliance. • Clarify the feasibility of the National Guard Armory's fuel tank in the amalgamated program. • Integrate the community planning and CDR process to the greatest extent possible. • Plan for appropriate budget needs for the CDR stage, including; • Geo-technical Study W Aerial photos NANAP'acific 10 / 35 8/16/2005 AVEC (Quinhagak Pre -CDR • Site Survey Undertake a site inspection of the Village Corporation and City Bulk Fuel Facility during the CDR stage. 15. Drawings Four proposed sites were developed and proposed to the community. Site 2 was ultimately selected and is included in the submittal. A second drawing to be used for the lease agreement is also included in this submittal package. Please refer to the following page for the drawing. NANAPaciflc 11 / 35 rJ 4 0 S A OlU b� - o � 4 a d CO ° to 0 U 0 �U rn " � �,o W) n to oo a � tn �n tn v t? v, Obi y0ON T� CD O, �N to caw 0w� �w�w°'o`, > w °00 N N Wo U °DWI C4 W O aiv b DA O b do a� ,� a„ a� 00 y � � � °° O� .� C4 ;, - �h �h �tn M .cam Zn c x °� a vUi.°ab y� X 01 01 a a o 0 a+ �I *" DD s. A •� .� o � a rA 9 o o on CID CII rz � •� w � � U b � d � � o a pRjp ° C o O a d 4. a m w� z 3 jr o d ° a U