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Renewable Energy Fund
IMPORTANT NOTICE
Requests for Grant Applications (RFA) AEA-09-004
for
Renewable Energy Grant Program
RFA ISSUE DATE: September 3, 2008
Interested applicants that want to be notified of updates or changes to the Renewable
Energy Grant Request for Applications MUST fill out the following information and reply
via email or fax; otherwise we will be unable to notify the applicant of possible addenda
to this RFA.
Please provide the following information by FAX or e-mail to the contact below:
Company Name _____________________________________________
Contact Name _____________________________________________
Company Address _____________________________________________
Telephone Number _____________________________________________
Fax Number _____________________________________________
E-mail Address _____________________________________________
Public Records Notice to Applicants:
Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and
materials submitted to the Authority may be subject to disclosure requirements
under the act if no statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the Legislature.
Return to:
Grant Manager: Butch White
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
FAX: (907) 771-3942
Phone: (907) 771-3048
E-mail: re_fund@aidea.org
Requests for Grant Applications AEA-09-004 Page 2 of 25 9/3/08
Requests for Grant Applications #AEA-09-004 for
Renewable Energy Grant Program
RFA ISSUE DATE: September 3, 2008
Grant Manager: Butch White
E-mail: re_fund@aidea.org
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
FAX: (907) 771-3942
Phone: (907) 771-3048
Requests for Grant Applications AEA-09-004 Page 3 of 25 9/3/08
Table of Contents
1. Introduction and Instructions ................................................................................ 5
1.1 Purpose ...................................................................................................................... 5
1.2 Introduction ................................................................................................................ 5
1.3 Government Roles and Responsibilities .................................................................. 5
1.4 Eligible Applicants ..................................................................................................... 6
1.5 Eligible Projects ......................................................................................................... 7
1.6 Filing an Application .................................................................................................. 7
1.7 Application Deadlines ............................................................................................... 8
1.8 RFA Project Web Site ................................................................................................ 8
1.9 Questions about the RFA .......................................................................................... 9
1.10 Modifications of the RFA ....................................................................................... 9
1.11 RFA Schedule ......................................................................................................... 9
1.12 Development of Grant Regulations ......................................................................10
1.13 Grant Funding ........................................................................................................10
1.14 Applicant Match .....................................................................................................11
1.15 Application Preparation Costs .............................................................................11
1.16 Application Content Requirements ......................................................................11
1.17 Authorized Signature ............................................................................................12
1.18 Applicant's Certification .......................................................................................12
1.19 Correction, Modification or Withdrawal of Applications .....................................12
1.20 Review of Applications - General .........................................................................12
1.21 Public Notice and Recommendations to the Legislature ...................................13
1.22 Notice of Intent to Award a Grant .........................................................................13
1.23 Grant Agreement ...................................................................................................13
1.24 Failure to Proceed .................................................................................................14
2. Project Requirements ........................................................................................... 14
2.1 Project Management Requirements ........................................................................14
2.2 Project Phase Descriptions ......................................................................................15
2.3 Phase I – Reconnaissance Requirements ...............................................................15
2.4 Phase II – Feasibility Analysis and Conceptual Design Requirements .................17
2.5 Phase III – Final Design and Permitting Requirements ..........................................18
2.6 Phase IV – Construction Requirements ..................................................................18
3. Grant Requirements ............................................................................................. 19
3.1. Declaration of Public Benefit ...................................................................................19
3.2. Grantee Project Manager ..........................................................................................19
3.3. Approval to Proceed With Next Phase ....................................................................20
3.4. Contracts for Engineering Services ........................................................................20
3.5. Site Control ...............................................................................................................20
3.6. Permits ......................................................................................................................20
3.7. Exclusion of Existing Environmental Hazards .......................................................20
3.8. Environmental Standards .........................................................................................20
3.9. Current Prevailing Rates of Wage and Employment Preference ...........................21
3.10. Construction Plans and Specifications Review ..................................................21
3.11. Construction Contractor Insurance and Bonding ...............................................21
3.12. Post Construction Certification ............................................................................21
3.13. Ownership of Facilities .........................................................................................21
3.14. Operation and Maintenance of Facilities .............................................................21
3.15. Operation and Maintenance (O&M) Reporting ....................................................22
3.16. Tariffs & Rates for Use of Grant-Funded Assets .................................................22
3.17. Grant-Funded Assets Not Included in PCE .........................................................22
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4. Application Evaluation Process .......................................................................... 22
Stage 1 Review: Completeness and Eligibility .................................................................23
Stage 2 Review: Project Feasibility ...................................................................................23
Stage 3 Review: Final Evaluation & Ranking ....................................................................24
5. Appendices ........................................................................................................ 25
Application Form .................................................................................................................25
Application Cost Worksheet ...............................................................................................25
Grant Budget Form and Budget Form Instructions ..........................................................25
Sample Grant Agreement ....................................................................................................25
Requests for Grant Applications AEA-09-004 Page 5 of 25 9/3/08
1. Introduction and Instructions
1.1 Purpose
Pursuant to Chapter 31 Session Laws of Alaska 2008 (referred to below as the program
legislation), which establishes the renewable energy grant recommendation program in
new Alaska Statute AS 42.45.045, the Alaska Energy Authority (―AEA‖ or ―Authority‖) is
soliciting competitive applications from qualified applicants for the purpose of
recommending grants for renewable energy projects to be funded by the Alaska State
Legislature. Applications will be accepted and evaluated in accordance with AS
42.45.045 and this Request for Applications (RFA). The program legislation, including
new AS 42.45.045, can be found on-line at
http://www.legis.state.ak.us/PDF/25/Bills/HB0152Z.PDF
1.2 Introduction
This RFA sets out the purpose, instructions, requirements, evaluative criteria, and other
information on submitting an application to the Authority for recommendation for grant
funding.
This RFA is organized as follows:
Section 1: Introduction and Instructions – describes program and procedural
requirements for preparing and submitting an application.
Section 2: Project Requirements – describes project information that is required to be
discussed in each application.
Section 3: Grant Requirements - describes specific grant terms and conditions related
to this program.
Section 4: Application Evaluation Process and Criteria – describes the criteria that
will be used to evaluate and rank each application.
Section 5: Appendices – provides additional reference material to assist in application
preparation, application forms, grant documents, and applicable law.
Accompanying this RFA are application forms and instructions to use in preparing your
application for a Renewable Energy Grant.
1.3 Government Roles and Responsibilities
The Alaska Legislature established the Renewable Energy Grant Fund and the
Renewable Energy Grant Recommendation Program in Chapter 31 SLA 2008, which
the Legislature enacted in 2008. This bill included a new statute, AS 42.45.045,
outlining the program and giving the Alaska Energy Authority responsibility for
administering the program.
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The Legislature is responsible for final approval and funding of all grant projects. For
FY09 grants, Chapter 31 SLA 2008 established an expedited process of review of
projects by the Legislative Budget and Audit Committee (LB&A).
The Authority is a public corporation of the State of Alaska with the purpose to promote,
develop, and advance the general prosperity and economic welfare of the people of the
State by providing a means of financing and operating power projects and by carrying
out the powers and duties assigned to it. AS 42.45.045 gives AEA the authority to
solicit applications for projects, develop and implement regulations, and recommend
grants for renewable energy projects to the Legislature. The Authority also has the
responsibility of establishing regulations for the purpose of implementing this program.
An Advisory Committee has been established for the Authority to consult with in the
development of regulations and ranking of applications.
The AEA Grant Manager is responsible for accepting applications, coordinating the
evaluation of all applications, and developing the list of grant projects to be
recommended to the Legislature.
An AEA Project Manager will be assigned to assist each Grantee whose application is
selected for grant funding. Tasks and level of the Authority’s project management will
vary according to the project management plan developed under the grant agreement.
At a minimum, the AEA Project Manager will clarify grant requirements, review reports
and billings, and track progress of the grant project.
The Executive Director of AEA or his designee will approve the final grant and carry out
all other duties as defined in statues, regulations, and this RFA.
1.4 Eligible Applicants
To be eligible for a grant recommendation the applicant must demonstrate formal
approval and endorsement of its project by its governing authority (such as board of
directors or executive management if it does not have a governing board) and be one of
the following types of entities:
1. An electric utility holding a certificate of public convenience and necessity
under AS 42.05;
2. An independent power producer (for the purposes of this grant an
independent power producer is a corporation, person, agency authority,
or other legal entity or instrumentality that owns or operates facilities for
the generation of energy to be used at least 50% by the public and that is
not an electric utility);
3. A local government; or
4. A governmental entity, (which includes tribal councils and housing
authorities).
Applications whose applicants do not meet these requirements will be rejected without
further evaluation.
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1.5 Eligible Projects
The Authority may recommend grants for feasibility studies, reconnaissance studies,
energy resource monitoring, and/or work related to the design and construction of an
eligible project. Applications for projects that are not within the scope of eligible projects
will be rejected without further evaluation.
To be eligible for a grant recommendation the applicant’s project must:
1.5.1. Be a new project not in operation on August 20, 2008 or an addition to an
existing project made after August 20, 2008.
and
1.5.2 Be a project that generates energy from or involves the direct use of:
wind, solar, geothermal, wasteheat recovery, hydrothermal, wave, tidal, river
in-stream, hydropower; or
low-emission nontoxic biomass based on solid or liquid organic fuels from
wood, forest and field residues, or animal or fish products; or
dedicated energy crops available on a renewable basis; or
landfill gas and digester gas.
Or
be a facility that generates electricity from fuel cells that use hydrogen from
renewable energy resources or natural gas.
Or
be a natural gas project (other than landfill or digester gas) that benefits a
community that:
has a population of 10,000 or less; and
does not have economically viable renewable energy resources it can
develop.
Or
be a transmission or distribution infrastructure located in Alaska that links an
eligible renewable energy project or eligible natural gas project to other
transmission or distribution infrastructures. (An applicant requesting a grant
for transmission or distribution infrastructure is not required to be involved in
the financing or construction of the renewable energy project or natural gas
project it may be connecting.)
1.6 Filing an Application
Applicants must submit one (1) hard copy of their complete application, including
appendices that can be duplicated, and one (1) electronic version on CD in PDF or
other print-ready electronic format in a sealed envelope(s) clearly labeled:
From: Applicant’s Return Address
Requests for Grant Applications AEA-09-004 Page 8 of 25 9/3/08
To: Alaska Energy Authority
AEA-09-004 – Renewable Energy Grant Application
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: 907-771-3000
1.7 Application Deadlines
The Authority is seeking to recommend projects based on applications that clearly
demonstrate a public benefit from the proposed project. It is understood that some
projects may be ready to proceed immediately and others will require more work to
develop. To address differing readiness and need for funding, the Authority intends to
solicit applications in two rounds.
The first round is intended to solicit applications for projects that may be ready and able
to proceed quickly with the anticipation that grants would be awarded by December
2008.
The second round is intended to solicit applications for projects that may require further
development or that may take more time to prepare applications. Additionally, the
second round is intended to provide the Authority with recommendations to the
Legislature for Fiscal Year 2010 funding.
First round applications should be received by the Authority at the address in Section
1.6 no later than 5:00 p.m., October 8, 2008.
Second round applications must be received by the Authority at the address in Section
1.6 no later than 5:00 p.m., November 10, 2008.
Failure to meet the deadlines may result in the application being rejected without
review.
The Applicant is solely responsible for complete and timely submission of its application.
The Authority accepts no responsibility for submission of applications or for applications
that are received after the application deadlines, whether because they were
misdirected, delayed, or erroneously addressed or for any other reason.
1.8 RFA Project Web Site
The Alaska Energy Authority web site at www.akenergyauthority.org has been set up to
make information available to the public regarding the project. The site contains the
following information and documents:
The RFA
Application and Grant forms
A summary of relevant questions received regarding the RFA and responses
Clarifications and addenda to the RFA
A list of all applications received
Status of applications received upon completion of each review stage
Requests for Grant Applications AEA-09-004 Page 9 of 25 9/3/08
PDF versions of all applications received (upon completion of the review and
ranking process)
1.9 Questions about the RFA
Applicants should carefully review all documents and the Authority web site prior to
contacting the Grant Manager with questions. Any questions regarding the RFA or
grant documents should be directed to:
Grant Manager: Butch White
Alaska Energy Authority
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: (907) 771-3048
Fax: (907) 771-3942
E-mail: re_fund@aidea.org
Questions that require clarification or interpretation of this RFA that the applicant cannot
answer by careful review of the RFA should be submitted in writing (letter or e-mail) no
later than 10 business days before the November 10, 2008 application due date.
The Grant Manager may contact the applicant directly by phone or e-mail to respond to
non-material questions. The Grant Manager will post the answer to material questions
on the Project website.
1.10 Modifications of the RFA
Applicants may submit written requests for modifications to this RFA to the Grant
Manager no later than September 17, 2008.
Acceptance or denial of the request is solely in the discretion of the Authority. The
Authority may not modify the requirements of AS 42.45.045 or Chapter 31 SLA 2008.
Failure of the Grant Manager to issue a written modification within 10 days from
submittal of request shall be considered a denial of the request.
Modifications to this request for applications may be issued at any time prior to the
deadline for receipt of applications at the Authority’s option. If modifications are issued
within 10 days of the deadline for applications, the application deadline may be
extended to allow time for applicants to respond to any changes. All modifications to
this RFA will be in writing and posted to the Project web site at
www.akenergyauthority.org and the Authority will provide e-mail notice to those
registered to receive notices as described on the cover page of this RFA.
1.11 RFA Schedule
Below is a schedule of critical dates as it relates to this request and award of grants.
Actual dates after the application due dates are tentative and may vary depending on
the number of applications received, the complexity of applications, and timely
completion of review by the Legislature.
Requests for Grant Applications AEA-09-004 Page 10 of 25 9/3/08
Task Round One Round Two
Application Due Date 10/08/08 11/10/08
Complete Evaluation of Applications 11/10/08 12/19/08
Submit Projects for Approval by Legislative
Budget & Audit (LB&A) or Legislature
11/19/08 1/30/09
Projects approved for funding (contingent upon
LB&A and Legislative Action)
12/8/08 5/15/09
Finalize Award Documents (Contingent upon the
Authority receiving all documentation needed for
award)
12/19/08 7/1/09
These dates are based on the assumption that Round One involves FY2009 funding
and Round Two involves only FY2010 funding. Actual award dates for Round Two may
vary if FY2009 funding is still available or additional appropriations are made available
prior to 5/15/2009.
1.12 Development of Grant Regulations
Applicants should be aware that the Authority will be following the public process to
develop regulations for this program as required by statute (AS.45.45.045 (d)(1)). Draft
regulations may be posted during the solicitation period of this RFA. This RFA, and any
grants awarded as a result of this RFA, may be modified if there are any conflicts
between the regulations and this RFA or proposed grant terms or conditions.
1.13 Grant Funding
A grant resulting from this RFA is subject to legislative appropriation. The program
legislation indicates the Legislature intends to provide $50 million per year for the next
five (5) years for Renewable Energy Grants under this program; however the actual
amounts available for the program and for any particular grant depend on the
Legislature’s appropriations. The Legislature has appropriated $100 million for FY2009
grant awards subject to LB&A approval.
The Authority must receive approval from the Legislature or LB&A prior to award of any
grant.
AEA has established initial funding allocation targets as indicated below as goals in its
selection of projects to recommend. The targets are preliminary and subject to
adjustment based on the available funding and the type, number, and quality of projects
submitted in each round of submissions.
Project Type Target Allocation - % of Grant $’s
Recommended
Reconnaissance Study 20%
Feasibility/Conceptual Design or Energy Resource
Monitoring
Final Design and Permitting 80%
Construction
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Grantees may proceed with work on projects prior to award, provided that:
1) They do so at their own risk as there is no guarantee projects will be funded or
funded at the level requested in their application.
2) They must have sufficient funds from sources other than this program to meet their
project commitments.
3) No work performed or obligations incurred prior to August 20, 2008 will be
considered for reimbursement.
The Authority may recommend eligible projects for FY2009 funding from either Round
One or Round Two.
1.14 Applicant Match
When reviewing applications the Authority will favorably consider applications that
commit the applicant to provide either a fixed amount or percentage of matching funds
to complete the project.
Applicants should identify the amount and source of matching funds or other resources
(collectively referred to as ―match‖) the applicant will contribute to the project based on
the total proposed grant project budget.
Proposed match based on a percentage of total project budget means that the
applicant will contribute a percentage of cash or in-kind support based on the total
project budget. For example, if the total project budget is $60,000, and the Grantee’s
match is 20% of the project costs, the Grantee must provide $12,000 ($60,000 x .2 =
$12,000). The amount of grant funds would be $48,000.
If matching funds or in-kind contributions are proposed, the applicant will be required in
the grant award to provide the match as proposed.
See the budget form instructions and clarification of matching requirements.
1.15 Application Preparation Costs
The Authority shall not pay for any costs incurred by the Applicants to prepare and
submit their application. No costs incurred by the Applicants in preparation of their
application may be charged as an expense of performing the grant.
The only reimbursable costs will be those allowed in the grant agreement signed by the
Authority.
1.16 Application Content Requirements
The application must address all the information required as noted in Section 2 for the
type of project proposed. Applicants should download and complete the MS Word
application and Excel budget forms provided from the Project web site
(www.akenergyauthority.org).
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Below is a list of document names and their purpose:
Document Name Description Date Software
version
GrantApp.doc Application Form and Instructions 9/3/08 Word 2003
Costworksheet.doc Application Cost Worksheet 9/3/08 Word 2003
GrantBudget.xls Grant Application Budget Form 9/3/08 Excel 2003
GrantBudgetInstr.pdf Instructions for Application Budget
Form
9/3/08 Word 2003
SampleGrantAgreement.pdf Example of Standard Grant Form 9/3/08 Acrobat 7
1.17 Authorized Signature
Applications must be signed by an individual authorized to bind the Applicant to its
provisions. The application will be considered valid for a minimum of 180 days. The
application may be extended by the mutual agreement of the Authority and the
Applicant.
1.18 Applicant's Certification
By signature on their application, Applicants certify that their application is truthful and
certify that they are complying and will comply with: 1) the laws of the State of Alaska;
2) the applicable portion of the Federal Civil Rights Act of 1964; 3) the Equal
Employment Opportunity Act, the Americans with Disabilities Act (ADA) and the
regulations issued thereunder by the federal government; and 4) all terms and
conditions set out in this RFA.
1.19 Correction, Modification or Withdrawal of Applications
An application may be corrected, modified or withdrawn by providing a written request
from an authorized representative of the Applicant to the grant manager before the time
and date set for receipt of the applications.
After applications are opened, modifications may be allowed prior to completion of the
evaluation process if the Authority determines that it is in the best interest of the
program to allow modifications.
Applicants who may be recommended for grant awards may be requested to clarify,
modify, or correct their application prior to recommendations being sent to the
Legislature or prior to award of a grant if the Authority determines that it is in the best
interest of the program.
Applicants who fail to respond to requests for clarifications, modifications, or corrections
within the period specified in the request may have their application rejected or removed
from the list of recommended projects.
1.20 Review of Applications - General
Applications will be reviewed in three stages by application evaluation committees,
which may include the Authority staff, consultants, and members of the Advisory
Committee established under the program legislation.
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Stage 1 – Completeness and Eligibility Review
Stage 2 – Technical and Financial Feasibility Review
Stage 3 – Final Evaluation and Ranking for Recommendations
Criteria that will be used for each stage are listed in Section 4.
Applications that do not comply with AS 42.45.45 and all of the material and substantial
terms, conditions, and requirements of this RFA may be rejected. If an application is
rejected the applicant will be notified in writing that its application has been rejected and
the basis for rejection.
The Authority may waive minor requirements of the RFA that do not result in a material
change in the requirements of the RFA and do not give an applicant an unfair
competitive advantage.
At any stage in the review process the Authority may request clarifying information and
the applicant will have a specified amount of time to respond to the request for
information. Failure to respond timely or provide adequate information will result in the
application being rejected.
If information is sufficient the application will be forwarded through to the next stage of
review.
1.21 Public Notice and Recommendations to the Legislature
Upon completion of Stage 3 the Authority will forward to the Legislature a summary of
all applications received, their status, the technical score and the final rank of all
applications, and the Authority will post on its web site the applications, a brief summary
of each project, and the final ranking and disposition of all applications. The total cost of
all recommended projects may be for more or less total dollars than the current funding
authorized by the Legislature. Funding of any project is subject to LB&A approval for
Fiscal Year 2009 projects and Legislative approval for Fiscal Year 2010 projects.
Applicants may be required to provide additional information to the Legislature upon
request.
1.22 Notice of Intent to Award a Grant
Upon approval by LB&A for FY2009 grants or approval by the Legislature for FY2010
grants, the Authority will provide a Notice of Intent to Award a grant to the applicant for
each approved grant project. Grantees whose authorizations are less than what was
requested or whose project scope, schedule, or budget may have changed from when
their application was originally submitted will be required to update their application to
assure the grant is consistent with proposed project and the funding available.
1.23 Grant Agreement
Applicants whose projects are selected for grant funding will be required to sign a Grant
Agreement prepared by the Authority that contain the terms and conditions in the
Sample Grant Agreement form dated 9/3/08 included as an appendix to this document.
The Authority may modify its standard form grant agreement if necessary for this
program or for particular projects.
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1.24 Failure to Proceed
If an Applicant is unable to respond and indicate acceptance of the Grant Agreement
within 30 days of receipt of the Grant Agreement or provide an update to its project as
may be required; then the offer of the grant may be withdrawn by the Authority and the
grant funds may be offered to another eligible grant applicant.
2. Project Requirements
Renewable energy projects funded under this grant program should proceed in phases
as described in this section, with the Grantee expected to substantially complete each
phase before receiving approval and funding to proceed to the next phase.
Applicants are expected to follow the accompanying instructions and use the application
forms to provide information required to be considered for a grant recommendation.
An application under the RFA should propose grant funding for one or more phases of
the Applicant’s renewable energy project as described below, and should include
sufficient information to allow for the evaluation and ranking of the application. The
depth of information needed with the application will vary depending on the type and
complexity of the project, the number of phases for which grant funding may be
requested, the amount of grant funds requested, and the estimated total project costs.
All applicants are required to have a project management plan they intend to follow that
includes who is going to manage the project, how it is going to be managed, a schedule
with milestones, and how project risks will be mitigated. The level of detail in the plan
will vary depending on the project phase(s), amount of funds requested, and complexity
of the project.
2.1 Project Management Requirements
The Applicant is responsible for implementing and executing a plan for managing the
project so that the project is completed within the scope, schedule and budget proposed
in the application.
Project Management
Project Manager The Applicant must designate a project manager(s) responsible for
managing the project for the Grantee. This may be:
An employee of the Grantee
A consultant
Or other partners committed to the project (for example,
Native Corps, other Utilities, IPPs, or Government Entities.
If not known, the Grantee should indicate how they intend to
select project managers.
Project Schedule Schedule for the proposed work that will be funded by this grant.
Project Milestones Identifies key tasks and decision points in the project schedule.
Project management milestone charts and descriptions of major
project decision points are encouraged.
Project Resources Identifies what people, equipment, or services will be used to
accomplish the project. Includes any commitments the Grantee
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may have or reference any existing contracts or the selection
process that may be used for major equipment purchases or
contracts.
Project
Communications
Identifies how the Grantee will monitor the project and keep the
Authority informed of the status.
Project Risk Identifies potential problems and how they will be addressed.
2.2 Project Phase Descriptions
The application should describe the project proposed for grant funding by phases and
demonstrate a likelihood that the project will be successfully completed and will provide
substantial public benefits. Applicants who have completed a project phase will be
required to document successfully completing the phase and show a positive public
benefit resulting from the project prior to the Authority releasing funds for a following
phase.
Each type of technology may have issues or tasks that are specific to that technology
that may need to be addressed in addition to the specific issues or tasks identified in
each phase.
Project phases that should be addressed in the applicant’s project description are as
follows. Within each phase, the major project tasks necessary to complete the phase
should be addressed.
Phase 1 - Reconnaissance A preliminary feasibility study designed to ascertain
whether a feasibility study is warranted.
Phase II – Feasibility Analysis,
Resource Assessment,
Conceptual Design
Detailed evaluation intended to assess technical,
economic, financial, and operational viability and to
narrow focus of final design and construction.
Phase III – Final Design and
Permitting
Project configuration and specifications that guide
construction. Land use and resource permits and
leases required for construction.
Phase IV – Construction,
Commissioning, Operation,
and Reporting
Completion of project construction and beginning of
operations. It also includes follow-up O&M reporting
requirements.
2.3 Phase I – Reconnaissance Requirements
The purpose of a Reconnaissance Study is to determine whether further study is
warranted. A Reconnaissance Study is required to consider and address the
information and tasks below.
Phase I - Reconnaissance
Proposed Energy
Resource
General description of the extent and amount of the renewable
resource
Existing Energy
System
For rural power systems and/or facility heating systems
Basic configuration (number, size, age, and type of gensets
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and boilers; efficiency; operating hours)
Capital and replacement costs
Annual O&M cost and schedule
Annual fuel consumption and fuel price
Load information (peak, minimum, average, and future
trends)
Plans for system upgrades
For all systems
Residential and commercial electrical service rates
Avoided cost of energy
Proposed System
Design
Description of renewable energy technology specific to
project location
Alternative system discussion
Optimum installed capacity
Annual generation
Anticipated barriers
Basic integration concept
Proposed System
Costs
Total anticipated project cost for this phase
Projected capital, O&M, and fuel costs
Projected debt financing if applicable
Project Benefits Annual fuel displacement and savings over the project life
Annual revenue from energy sales, tax credits, green tags,
and other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Identification of potential energy market
Potential energy purchase and sales rates
Land Ownership Landowner(s) identified and contacted
Permits List of applicable permits
Anticipated permitting timeline
Potential regulatory barriers
Environmental Complete environmental screening that addresses:
Threatened and Endangered species and other habitat
impacts
Fisheries and wildlife protection
Water and air quality impacts
Wetland and protected areas
Archaeological and historical resource impacts
Land development constraints
Telecommunications and aviation impacts
Visual and aesthetics resource impacts
Other environmental barriers
Analysis and
Recommendations
Basic economic analysis of alternatives
Recommendations for additional project development work
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2.4 Phase II – Feasibility Analysis and Conceptual Design Requirements
Phase II Feasibility Analysis requires a detailed evaluation intended to further assess
technical, economic, financial, and operational viability of a project and to narrow the
focus of final design and construction. In addition to addressing all the requirements of
the Phase I described above, a feasibility analysis should address the information and
tasks below.
Phase II –Feasibility Analysis, Conceptual Design
Proposed Energy
Resource
Site-specific assessment of available energy resource following
industry standards usually based on field measurements,
discussions with resource owners, and other onsite activities.
Examples of assessment activities include
Collection and analysis of meteorological tower data at
proposed wind turbine locations
Assessment of geological data from surface investigation
and test wells for geothermal and natural gas projects
Stream gauging and hydrological modeling for
hydroelectric projects
Analysis of wood and sawmill residue availability and
delivered cost to biomass energy project locations
Existing Energy
System
Annual load profile—power projects may require onsite
measurement
Load growth projections
Transmission system layout and capacity
Retirement schedule
Proposed System
Design
Identification and analysis of system alternatives
Recommended alternative including discussion of impacts
on existing system
Assessment of project site, including geotechnical
characteristics as necessary
Annual energy production profile
Conceptual system design
Conceptual integration design
Identification of remaining technical barriers
Project Costs Conceptual level cost estimates for final design and
construction
Annual O&M and fuel costs
Other project costs including leases, taxes, insurance, and
financing
Project Benefits Annual fuel displacement and savings over the project life
Detailed analysis of revenue from energy sales, tax
credits, green tags, and other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Preliminary energy purchase or sales agreement
Land Ownership Assessment of site control requirements for proposed
project
Authorization from land owners for onsite feasibility
Requests for Grant Applications AEA-09-004 Page 18 of 25 9/3/08
activities
Permits Obtain authorizations from all applicable agencies for any
use of land or resources for feasibility activities
Environmental Site-specific assessment of resources that may be
significantly affected. Examples include fish and wildlife
habitat assessment, visual impact modeling, and air quality
assessment.
Plan for addressing potential environmental impacts
Analysis and
Recommendations
Comprehensive economic and financial analyses of
alternatives
Recommendations for project design and construction
activities
Draft operational and business plan
2.5 Phase III – Final Design and Permitting Requirements
Building on information gathered in Phase I and II applicants are required to complete
Phase III prior to construction. The purposes of Phase III are to establish the project
configuration and specifications that will be used to guide construction, refine project
costs estimates, finalize business plans, and obtain land use and resource
authorizations required for construction. Work should address the information and tasks
below.
Phase III –Final Design & Permitting
Renewable Energy
Resource
Updated data to confirm that resource is still available
Existing Energy
System
Final engineered and approved energy system
configuration including upgrades
Proposed System
Design
Final engineered and approved system design
Final engineered and approved integration design
Interconnection study
Project Cost Final engineer’s estimate of project cost
Project Benefits Detailed financial analysis based on chosen business
structure and applicable costs, revenues, and incentives
Power
Purchase/Sale
Executed power purchase/sales agreement
Land Ownership Final land use authorizations obtained
Permits All necessary permits obtained
Environmental All environmental issues resolved
Analysis and
Recommendations
Final operational and business plan
2.6 Phase IV – Construction Requirements
The purpose of the construction phase is to construct and commission the project, begin
operations, and provide follow-up reports on operations and maintenance for a specific
period of time to document the program’s impact on the community. Grantees are
expected to cover all costs of operations and maintenance in compliance with their
Requests for Grant Applications AEA-09-004 Page 19 of 25 9/3/08
operational and business plans developed in Phase III. The construction phase will
address the information and tasks below
Phase IV –Construction, Commissioning, Operation, and Reporting
Renewable Energy
Resource
Monitoring to verify and update projections and system
efficiency
Existing Power
System
Coordination of conversion, integration, or surplus of
existing system
Proposed System
Design
Construction plan and schedule
Commissioning plan and schedule
Modifications to final design during construction
Project Cost Actively track project costs against the project budget
Propose budget modifications as needed
Manage cost overruns
Environmental Environmental monitoring as required
Permitting Reports as required by permitting agencies
Analysis and
Recommendations
Update business plans and power purchase agreements
as needed to account for actual construction costs
Final project report including as-built specifications and
drawings, final budget, schedule, and recommendations
Periodic operation and maintenance reports as required
by grant including actual O&M, fuel, and equipment costs;
O&M measures and schedule; energy output; project
availability; conversion efficiency; renewable energy
resource; and recommendations
3. Grant Requirements
To receive renewable energy grants, applicants must comply with the following standard
terms and conditions and the other terms and conditions in the Authority’s standard
grant document (see SampleGrantAgreement.pdf). If the Grantee is a tribal entity, a
waiver of sovereign immunity also will be required as a condition of the grant.
3.1. Declaration of Public Benefit
The Grantee acknowledges and agrees that the Project shall be constructed, owned
and operated for the benefit of the general public and will not deny any person use
and/or benefit of Project facilities due to race, religion, color, national origin, age,
physical handicap, sex, marital status, changes in marital status, pregnancy or
parenthood.
3.2. Grantee Project Manager
For construction projects, the Grantee will contract or hire competent persons to
manage all phases of the Project subject to approval by the Authority. Work at a
minimum will include: management of Grantee’s labor for the project, engineering firms
and consultants, procurement, management of construction contractors, selection of
Requests for Grant Applications AEA-09-004 Page 20 of 25 9/3/08
equipment, review of plans and specifications, on-site inspections and review and
approval of work, and other duties to ensure that the completed work conforms with the
requirements of the grant and the construction documents.
If the Grantee fails to provide adequate project management the Authority may
terminate the Grant or assume project management responsibilities with the
concurrence of the Grantee. Costs for a Project Manager must be reasonable to be
considered an eligible grant expense.
3.3. Approval to Proceed with Next Phase
A grant award may be for one or more phases of a project. The Grantee must achieve
substantial completion of work or of designated construction milestones and receive
approval from the Authority prior to proceeding to the next phase of work.
3.4. Contracts for Engineering Services
In the event the Grantee contracts for engineering services, the Grantee will require that
the engineering firm certify that it is authorized to do business in the State of Alaska and
provide proof of licensing and insurance.
3.5. Site Control
If the grant Project involves the occupancy and use of real property, the Grantee
assures that it has the legal right to occupy and use such real property for the purposes
of the grant, and further that there is legal access to such property. The Grantee is
responsible for securing the real property interests necessary for access and the
construction and operation of the Project, through ownership, leasehold, easement, or
otherwise, and for providing evidence satisfactory to the Authority that it has secured
these real property interests.
3.6. Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for
the construction and operation of this Project by the Federal, State, or Local
governments have been obtained unless otherwise stated in Appendix C. These
permits may include, but are not limited to, Corps of Engineers’ Wetlands Permit, State
Historic Preservation Office, State Fire Marshal approval, rights-of-way for the pipelines,
and site control, including any necessary Coastal Zone Management coordination
through the Division of Coastal and Ocean Management (DNR).
3.7. Exclusion of Existing Environmental Hazards
Grant funds will not be awarded for and may not be used for environmental
investigation, removal or remediation of contamination, remediation of existing facilities
or properties, or any other environmental matters, unless specifically provided in the
Grant Agreement. In addition, grant funds will not be awarded for and may not be used
for the decommissioning or removal of any existing facilities except as specifically
provided in the Grant Agreement.
3.8. Environmental Standards
The Grantee will comply with applicable environmental standards, including without
limitation applicable laws for the prevention of pollution, management of hazardous
waste, and evaluation of environmental impacts.
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3.9. Current Prevailing Rates of Wage and Employment Preference
Certain grant Projects are constrained by the provisions of AS 36. PUBLIC
CONTRACTS. To the extent that such provisions apply to the Project, which is the
subject of this Grant Agreement, the Grantee shall pay the current prevailing rates of
wage to employees as required by AS 36.05.010. The Grantee shall also require any
contractor to pay the current prevailing rates of wage as required by AS 36.05.010.
Further, in accordance with AS 36.10.010, 95% (percent) of the work force employed in
the completion of this Project shall be local residents where they are available and
qualified. If 10 or fewer persons are employed, then 90% (percent) of the project work
force shall be local residents where they are available and qualified.
3.10. Construction Plans and Specifications Review
Prior to public notice of bidding a construction project the Grantee will provide the plans
and specifications to the Authority for review. Concurrence that the plans and
specifications are consistent with the grant award must be received before grant funds
will be released for construction related costs.
3.11. Construction Contractor Insurance and Bonding
The Grantee must require construction contractors to provide proof of adequate
insurance and payment and performance bonding prior to beginning construction on a
project in accordance with AS 36.25.010.
3.12. Post Construction Certification
Upon completion of construction the Grantee will submit a final report that includes:
Certification that all work is completed in accordance with the grant and all costs
claimed are eligible costs and represent work completed on the Project
Summary of total project cost including detailed funding sources and any
outstanding debt
Certification that there is a release of any contractor or subcontractor liens on the
project
Identification of any outstanding construction issues
As-built drawings
3.13. Ownership of Facilities
The Grantee shall assume all liabilities arising from the ownership and operation of the
Project. Grantee will not sell, transfer, encumber, or dispose of any of its interest in the
facilities constructed with this grant funding during the economic life of the Project
without prior written approval of the Authority.
3.14. Operation and Maintenance of Facilities
The Grantee is required to maintain and operate the facilities defined in their application
for the useful life of the facility or the specific period of time designated in the grant
agreement.
In the event that the Grantee is no longer operating the facilities for the intended
purposes the Authority may require the Grantee to reimburse the Authority an amount
based on the total contribution of the Authority, the value of the assets, and the terms
Requests for Grant Applications AEA-09-004 Page 22 of 25 9/3/08
and conditions of this agreement. The Authority may require that the assets acquired
under this agreement be sold and the proceeds returned to the Authority.
3.15. Operation and Maintenance (O&M) Reporting
For all construction projects the Grantee must provide an O&M report that provides
detailed description of operations and maintenance activities and cost, energy output
and fuel displacement estimations, and discussion of operational issues. Failure to
provide this information may result in the Grantee being ineligible for future grant funds
from the Authority.
3.16. Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of generation or transmission facilities built with
grant funds may be subject to review and approval by the Regulatory Commission of
Alaska (RCA), or if the rates are not subject to RCA review and approval, they may be
subject to review and approval by the Authority to ensure reasonable and appropriate
public benefit from the Project.
3.17. Grant-Funded Assets Not Included in PCE
The Grantee agrees that it will not include the value of facilities, equipment, services, or
other benefits received under this grant as expenses under the Power Cost Equalization
Program or as expenses on which wholesale or retail rates or any other energy tariffs
are based.
4. Application Evaluation Process
Applications will be reviewed in three stages by application evaluation committees,
which may include the Authority staff, consultants, and Advisory Committee members:
Stage 1 – Completeness and Eligibility Review
Stage 2 – Technical and Financial Feasibility Review
Stage 3 – Final Evaluation and Ranking for Recommendations
Applications that do not comply with AS 42.45.45 and all of the material and substantial
terms, conditions, and requirements of this RFA may be rejected. If an application is
rejected the applicant will be notified in writing that its application has been rejected and
the basis for rejection.
The Authority may waive minor requirements of the RFA that do not result in a material
change in the requirements of the RFA and do not give an applicant an unfair
advantage in the review process.
Upon submission of the final recommendations to the Legislature the Authority will
make all applications available for review on the Authority’s web site.
Decisions made in each stage of the review process will be documented in writing and
made a part of the grant file.
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Stage 1 Review: Completeness and Eligibility
All applications received by the deadline will initially be reviewed by the Authority staff to
assess if the application is complete, meets the minimum submission requirements, and
has adequate information to proceed to Stage 2 – Technical Evaluation.
The following pass-fail criteria will be used to determine if the application meets the
minimum requirements.
Application
must meet all
of these
criteria to be
considered
further.
1. The application is submitted by an Eligible Applicant (sec 1.4).
2. The project meets the definition of an Eligible Project (sec 1.5).
3. A resolution or other formal authorization of the applicant’s
governing body is included with the application to demonstrate
the applicant’s commitment to the project (sec 1.4).
4. The application provides a detailed description of the phase(s)
of project proposed—i.e. reconnaissance, feasibility
analysis/conceptual design, final design/permitting, and/or
construction (sec 2.2).
5. The application is complete in that the information provided is
sufficiently responsive to the RFP to allow AEA to consider the
application in the next stage of evaluation.
6. The applicant provides evidence of having the minimum
technical, financial, and management capability to complete the
work as proposed in the grant or a reasonable plan to obtain it.
If an application is ambiguous regarding questions 1-6, the Authority may request
clarifying information and the applicant will have a specified amount of time to provide
the requested information. Failure to respond timely or provide an adequate
explanation will result in the application being rejected.
Stage 2 Review: Project Feasibility
All applications that pass Stage 1 will be reviewed for feasibility in accordance with the
criteria below:
Application
must
substantially
meet these
criteria to be
considered
further.
1. Project Management, Development, and Operation
a. The proposed schedule is clear, realistic, and described
in adequate detail.
b. Project development, operation, maintenance, fuel, and
other cost and savings estimates are realistic.
c. The project team’s method of communicating,
monitoring, and reporting development progress is
described in adequate detail.
d. Logistical, business, and financial arrangements for
operating and selling energy from the completed project
are reasonable and described in adequate detail.
2. Qualifications and Experience
a. The applicant, partners, and contractors have sufficient
knowledge and experience to successfully complete and
Requests for Grant Applications AEA-09-004 Page 24 of 25 9/3/08
operate the project.
b. The project team has staffing, time, and other resources
to successfully complete and operate the project.
c. The project team is able to understand and address
technical, economic, and environmental barriers to
successful project completion and operation.
d. Use of local labor and training of local labor workforce.
3. Technical Feasibility
a. The renewable energy resource is available on a
sustainable basis and project permits and other
authorizations can reasonably be obtained.
b. A site is available and suitable for the proposed energy
system.
c. Project technical and environmental risks are
reasonable.
d. The proposed energy system can reliably produce and
deliver energy as planned.
e. If a demonstration project is being proposed:
specific benefits of proposed technology are likely
(such as application in other areas of the State);
need for this project is shown; (and
the risks of the proposed system are reasonable
and warrant demonstration.
4. Economic Feasibility and Benefits
a. The project is shown to be economically feasible
b. The project has an adequate financing plan for
completion of the grant-funded phase and has
considered options for funding subsequent phases of the
project.
c. Other benefits to the Alaska public are demonstrated.
The Authority may develop a preliminary list of feasible applications and may request
additional information from applicants at this stage to confirm a complete understanding
of the project proposed.
If information is requested, the applicant may be required to provide information within a
short time frame to allow for the Authority to continue to the next stage of the review
process.
Applicants that fail to respond to requests for information or to adequately address the
criteria in the technical review may be rejected.
Stage 3 Review: Final Evaluation and Ranking
All applications that pass the technical review will be scored and ranked based on the
following criteria which include criteria required by AS 42.45.045.
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Final Ranking
Criteria to be
Used for
determining
applications
to recommend
to Legislature
1. Cost of energy per resident in the effected project area
relative to other areas.
2. The type and amount of matching funds and other resources
an applicant will commit to the project.
3. A statewide balance of grant funds to assure funding is made
available for feasible projects in all regions of the State.
4. Project feasibility (value from Stage 2)
5. Project readiness. How quickly the proposed work can begin
and be accomplished
6. Success in previous phases of project development.
7. Economic Benefit to the Alaska Public
8. Other Alaska Public Benefit (such as ability to use technology
in other parts of Alaska).
9. Sustainability – Operations and Maintenance
10. Local Support
During this stage of review the evaluation team may conduct interviews of applicants to
determine a more complete understanding of the technical or financial aspects of their
application.
The Authority may recommend a project be funded for an amount different than what
was requested.
5. Appendices
Application Form
Application Cost Worksheet
Grant Budget Form and Budget Form Instructions
Sample Grant Agreement