HomeMy WebLinkAboutAPPLICATION - NVKK REF Round 15 Heat Application Form - Final version for review and approvalRenewable Energy Fund Round 15
Grant Application – Heat Form
AEA 23046 Page 1 of 36 10/04/2022
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 15 of the Renewable Energy Fund Heat Projects only. If your application is for energy
projects that will not primarily produce heat, please use the standard application form (see Request
for Applications (RFA) section 1.5). An electronic version of the RFA and both application forms are
available online at: https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-
Energy-Fund/2022-REF-Application.
What follows are some basic information and instructions for this application:
● If you are applying for grants for more than one project, provide separate application forms for
each project.
● Multiple phases (e.g. final design, construction) for the same project may be submitted as one
application.
● If you are applying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project (see Sections 3.1 and 3.2.2).
● In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 Alaska
Administrative Code (AAC) 107.605(1).
● 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
completed and funding for an advanced phase is warranted. Supporting documentation may
include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof
of site control, utility agreements, business and operation plans, power sale agreements,
relevant data sets, and other materials. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your application.
● If you have additional information or reports you would like AEA to consider in reviewing your
application, either provide an electronic version of the document with your submission or
reference a web link where it can be downloaded or reviewed. Please provide a list of
additional information; including any web links, in section 12 of this application and attach the
documents to your application. For guidance on application best practices please refer to the
resource-specific Best Practices Checklists; links to the checklists can be found in the
appendices list at the end of the accompanying REF Round 15 RFA.
● In the sections below, please enter responses in the spaces provided. You may add additional
rows or space to the form to provide sufficient space for the information, or attach additional
sheets if needed.
● If you need assistance with your application, please contact AEA Grants Coordinator by email
at grants@akenergyauthority.org or by phone at (907) 771-3081.
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Grant Application – Heat Form
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REMINDER:
● AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be
subject to disclosure requirements under the act if no statutory exemptions apply.
● All applications received will be posted on AEA’s website after final recommendations are
made to the legislature. Please submit resumes as separate PDFs if the applicant would like
those excluded from the web posting of this application.
● In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by AEA. If you want
information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their application.
o Receive concurrence from AEA that the information will be kept confidential. If AEA
determines it is not confidential, it will be treated as a public record in accordance with
AS 40.25 or returned to the applicant upon request.
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Grant Application – Heat Form
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
Name (Name of utility, IPP, local government, or other government entity)
Native Village of Kluti-Kaah
Tax ID # 92-0068593
Date of last financial statement audit: FY 2020 audit was completed 8/3/21.
Mailing Address: Physical Address:
P.O.Box 68 Mile 104 Old Richardson Highway
Copper Center, AK 99573 Copper Center, AK 99573
Telephone: Fax: Email:
907-822-5541 N/A nvkkgov@klutikaah.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Willard Hand Title: Tribal Administrator
Mailing Address:
P.O.Box 68
Copper Center, AK 99573
Telephone: Fax: Email:
907-822-5541 N/A nvkkgov@klutikaah.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Willard Hand Title: Tribal Administrator
Mailing Address:
P.O.Box 68
Copper Center, AK 99573
Telephone: Fax: Email:
907-822-5541 N/A nvkkgov@klutikaah.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Stephen Davidson 907-822-5541 nvkkroads@cvinternet.net
1.2 Applicant Minimum Requirements
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Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN #______, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1)
CPCN #______, or
☐ A local government, or
☒ A governmental entity (which includes tribal councils and housing authorities)
Additional Minimum Requirements
☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate yes by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate yes by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-
Fund/2022-REF-Application (Any exceptions should be clearly noted and submitted with the
application.) (Indicate yes by checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Native Village of Kluti-Kaah Wood Chip Heating Project
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information, please contact
AEA at (907) 771-3081.
The Native Village of Kluti-Kaah (NVKK) is classified as a rural village in eastern southcentral
Alaska, near the Canadian border. Kluti-Kaah Village lies just west of the boundary for the Wrangell-
Saint Elias National Park & Preserve, the largest National Park in the US. NVKK is surrounded by
hundreds of miles of continuous volatile black spruce, the primary fire prone species.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The Native Village of Kluti-Kaah (NVKK) is a federally recognized Alaska Native Tribal government
(population 650) located in Copper Center, Alaska, about 17 miles southeast of Glennallen. NVKK
consists of a cluster of community buildings at 104 Old Richardson Highway that include a Tribal
Hall, Tribal Offices, garage, Headstart Building, and a Cultural Learning and Recreational Building
that is in the final construction stages. Housing for tribal members is also located in Copper Center
and is within 5 miles of the NVKK community buildings. NVKK is located in the continental climate
zone, with long, cold winters and relatively warm summers. Temperature extremes range from -57
to 93 °F. Average annual snowfall is 69 inches, with a total of 16 inches of precipitation per year.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐ Wind to Heat ☒ Biomass or Biofuels
☐ Hydro to Heat ☐ Solar Thermal
☐ Heat Recovery from Existing Sources ☐ Heat Pumps
☐ Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction ☐ Reconnaissance ☐ Final Design and Permitting
☐ Feasibility and Conceptual Design ☒ Construction
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed heat project.
The Native Village of Kluti-Kaah Woodchip Heating Project proposes Phase IV Construction
funding in the amount of $500,000 and will construct a biomass wood chip district heating system
to service the Tribal Hall, Tribal Offices, garage, HeadStart, and the Cultural Learning and
Recreational Center (CLRC). This project will displace about 23,709 gallons of imported heating
fuel which is approximately 90% of the current and predicted usage. This system will use
approximately 285 tons (25% moisture) per year of locally harvested and processed woodchips.
This project will create local wood-harvesting employment/small business opportunities, providing a
use for wood that is harvested to protect communities from wildfire while decreasing the
community’s dependence on expensive imported diesel. As part of another project NVKK is a
developing wood harvest, wood chip processing, and a sawmill for economic development within
the community.
Initial funding for the development of this project was received from the United States Forest
Service Wood Innovation Program and the Denali Commission for Phase 1 design and
construction that included the Tribal Hall, offices, garage, Headstart and clinic. Since these grants
were awarded, NVKK has received funding to complete the construction of the CLRC, so the
proposed AEA grant will support the expanded scope to provide biomass heat to the CLCR. The
clinic will be moved into the CLRC. Additionally, the WIG and DC funding was received before
COVID and the recent out-of-control inflation and shipping costs. Construction costs for the project
have increased significantly due to lack of materials availability, shipping, and a shortage of
construction contractors. The AEA funding will also support the completion of work already started
on the chip-fired districted heating system.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
The project scope includes the construction of the following components:
● Installation of the underground PEX piping to distribute heat to the Tribal Hall, Tribal Offices,
garage, Headstart, and CLRC.
● Completion of the piping and controls integration of the district heating system into the existing
fuel oil heating systems in the buildings.
● Completion of the construction of the 3-sided wood chip storage barn and the chip feed bunker.
● Commissioning and start-up support of the system.
● Project and Construction Management Services
● Matching local funds will be provided via cash match from United States Forest Service and
Denali Commission grants. NVKK will provide additional cash for any funding shortfalls.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
NONE
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed
project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add
additional rows as needed.
Task # Milestones Tasks Start
Date
End
Date Deliverables
1.1 Grant Agreement
in place
● Kick-off meeting
7/15/23 9/30/23
Signed Grant Agreement
2.1 Construction Install boiler and
fuel handling
equipment
● install piping and
integrate to
existing systems
● Continuously
monitor progress
versus plan.
● Develop detailed
commissioning
and O&M training
plan. 7/15/23 10/31/23
Submittal of Monthly Progress
Reports versus plan
Submittal of detailed
commissioning and training
plan.
3.2 Commissioning
and Final
Acceptance
● Train employees
to operate and
maintain the
heating system
● Commission
boiler, verifying
proper operation
of all components 11/1/23 11/30/23
Submittal of Final Acceptance
Report
Punchlist
4.1 Grant Close-out ● Monitor
Operation and
Complete
punchlist
items
● Prepare and
submit final
reports 12/1/23 06/30/24
Submittal of final project
report and close-out
documentation
4.2 Annual
Performance
Reporting
● Preparation
and submittal
of annual 12/1/23 11/30/33
Submittal of annual
performance report, including
documentation of
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performance
reports.
improved/optimized
performance over time
3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $500,000
Cash match to be provideda $403,400, ($160,000
remaining to be
spent)
In-kind match to be provideda $
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of above) $
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
Match will be provided by the Native Village of Kluti-Kaah in the form of $403,400 in cash match.
These funds were received in a grant from the Denali Commission with the total award amount of
$315,000 with a $36,600 match requirement. $250,000 was received in 2021 from the United
States Forest Service (USFS) Wood Innovations Program (WIG) which required a $125,000
match. The match amounts were deducted from the award amounts to result in the $403,400 cash
match for this REF application. $160,000 of the USFS and WIG remains unspent.
Additional In-Kind match will be provided by the staff of NVKK, but this will not be tracked due to
the magnitude of the matching funds from USFS and Denali Commission.
The completion of the project construction will occur in the Summer of 2023 after REF funds are
secured if the project is selected for funding.
a Attach documentation for proof (see Section 1.18 of the RFA)
b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency
Match.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
Because 50% of the construction of this project is already complete, we are confident with the
budget request that we will be able to commission the system with these additional funds.
Unfortunately, this project request is the result of the recent significant inflation that has plagued
Alaska, especially remote construction projects. We have seen 100% to 300% cost increases in
project costs that were estimated just 2 years ago. If there is a shortfall in funding, NVKK would
utilize their general fund and would completed more of the construction work with inhouse staffing.
The project is also expected to reduce heating costs by approximately $82,128 annually which
would then be used to resupply the emergency fund.
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Indicate if
the costs were actual or estimated. Use actual costs for completed phases.
Reconnaissance [Actual/Estimated] $
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Feasibility and Conceptual Design [Actual/Estimated] $Provided by
USFS
Final Design and Permitting [Actual/Estimated] $80,000
Construction [Actual/Estimated] $985,000
Total Project Costs (sum of above) Estimated $1,065,000
Metering/Tracking Equipment [not included in
project cost]
Estimated $included in cost
of the project
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
● State and/or federal grants
● Loans, bonds, or other financing options
● Additional incentives (i.e. tax credits)
● Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
N/R
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3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget. Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Coordinator by email at
grants@akenergyauthority.org or by phone at (907) 771-3081.
Phase 1 — Reconnaissance
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Phase 2 — Feasibility and Conceptual Design
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Phase 3 — Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $ $
Engineering Design/Business
Plan
Completed
2022 $ $80,000
USFS Wood
Innovations
Grant
$80,000
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $80,000 $80,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $80,000 $80,000
Construction Services $ $ $
Other $ $ $
TOTALS $ $80,000 $80,000
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Phase 4 — Construction
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $
Grant Agreement in place,
grant and construction
management
7/15/23 $20,000 $20,000
Construction Materials 10/31/23 $200,000 $155,000 $355,000
Construction
Labor/Contractual 10/31/23 $267,000 $5,000 $272,000
Commissioning and Final
Acceptance 11/30/23 $5,000 $5,000
Final Reporting, Grant
Close-out 6/30/24 $8,000
$8,000
Previous Equipment
Purchases
Completed
2022
$163,400
USFS Wood
Innovations
and Denali
Commission
grants
$163,400
Previous Grant Cost Share
$161,600
Denali
Commission
and NVKK
$161,600
TOTALS $500,000 $485,000 $945,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ 200,000 $ 155,000 $ 355,000
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ 300,000 $ 5000 $ 305,000
Other $ $ 325,000 $
TOTALS $ 500,000 $ 485,000 $ 945,000
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3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
The design and detailed costs estimate for this project was completed by Coffman Engineers of
Anchorage, Alaska. They are experienced with biomass projects and construction in rural Alaska.
This cost estimate was completed before the recent inflation. The budget for this grant request
from AEA has been updated by DeerStone Consulting with realistic estimates to complete the
construction of the project, including recent verbal quotes from mechanical contractors.
3.3 Project Communications
3.3.1 Project Progress Reporting
Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who will be responsible for tracking the progress? What tools and methods will be used to track
progress?
The NVKK project team with assistance from the Owner’s Representative, DeerStone Consulting,
will develop a detailed project critical path construction plan with assigned accountabilities,
milestones, and due dates. Progress will be measured based on this plan and we will identify
deficiencies before they impact project deliverables. We will also have monthly project meetings
that include the AEA project manager to ensure tasks are being performed according to the
agreed-upon timeline and budget. The NVKK project manager will provide monthly reports to the
NVKK Tribal Council and AEA that will detail the progress versus plan and any remediation plans
to address deficiencies. Our intent is to include the AEA project manager as an active member of
our construction team to incorporate their knowledge and experience in the successful construction
of this project.
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
Project Tracking: In accordance with NVKK policy, when a project is funded, an account and
object account code is created to track all materials and time related to that project in QuickBooks.
Susan Smith is on contract with NVKK to provide the accounting services, and she is experienced
in project tracking. She has been completing the reports for the WIG and Denali Commission
projects for the last year and is very familiar with the Wood Chip Heating Project. The grant
agreement is reviewed in detail with the accounting team at the beginning of the project to ensure
that only eligible and reasonable costs are billed to the grant.
Procurement: When purchases are made for less than $25,000, NVKK will seek informal quotes.
Any purchase over $25,000 requires 3 formal quotes. We always encourage local or State
purchases. A selection committee reviews the quotes and selects the best value for the
community. Once bids are approved, we initiate contracts and make equipment purchases, within
the project scope. Any changes to the scope or timeline will be formalized in writing and the Forest
Service will be notified both via email and in our regular reporting structure.
Invoices from the vendors and contractors are reviewed by the project team and signed by the
Tribal Administrator for payment.
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Our procedures for Managing crew and labor: NVKK staff time is tracked with daily timesheets
that are reviewed by the project manager, Owner’s Rep, and Tribal Administrator for clarity and
accuracy. Approved timesheets are submitted to the accountant for payment.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. 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.
Stephen Davidson will act as Project Manager for NVKK. Mr. Davidson is the current Biomass
complex manager and NVKK mechanic and maintenance manager. He has been in his current role
for 7 years. Mr. Davidson has been managing the Wood Chip Heating Project for the past 2 years
and is leading the upgrade for the Tribal Hall heating system. He also has 27 years of experience
in construction and project management.
Mr. Davidson will be supported by technical staff from DeerStone Consulting and the United States
Forest Service for the start-up and commissioning of the boiler and district heating loop. We also
expect support from the Alaska Gateway School District and the Craig School District, because
they will be installing similar boilers to NVKK. Both Alaska Gateway School District and Craig
School District have been operating biomass boilers for more than 10 years and are considered
the most experienced boiler operators in the state.
4.1.2 Project Accountant
Indicate who will be performing the accounting of this project for the grantee. If the applicant does
not have a project accountant indicate how you intend to solicit financial accounting support.
Susan Smith is a contract bookkeeper who has been working with NVKK for the two last years and
will be managing the reimbursements and reporting for the REF grant is awarded. Ms. Smith has a
B.S. in Education and Mathematics and an M.S. in Education and Mathematics. She has been
involved in bookkeeping since 1992 and is trained in QuickBooks accounting. She has helped
improve our internal financial controls which have resulted in clean audits of our books.
4.1.3 Expertise and Resources
Describe the project team including the applicant, partners, and contractors.
For each member of the project team, indicate:
● the milestones/tasks in 3.1 they will be responsible for;
● the knowledge, skills, and experience that will be used to successfully deliver the tasks;
● how time and other resource conflicts will be managed to successfully complete the task.
If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts.
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The project team consists of the following members and the key duties/contributions they will
provide for the project. Please see resumes in the appendices:
Bill Hand is the NVKK Tribal Administrator. Mr. Hand will provide overall leadership to the team and
will be responsible for signing the grant agreement and certifying the project close-out. He will be
the primary contact for the project. Mr. Hand has been the Tribal Administrator for the last five
years and was instrumental in acquiring the funding for the completion of the CLRC and the initial
phases of the Wood Chip Heating Project. Bill has a clear vision of a wood harvest, wood
processing, and wood chip heating systems that will create local jobs for tribal members utilizing
wood harvested for wildfire mitigation. Bill is the biomass champion in NVKK.
Stephen Davidson is the Project Manager. As project manager, Mr. Davidson will oversee all
technical aspects of the project. He will be responsible for the day-to-day construction
management including all contractors and force account labor. He will also be the lead for the
commissioning of the system and will provide supplemental training beyond that provided by the
boiler vendor. He has 27 years of construction management and related experience.
Priscilla Morris is the USFS Wood Biomass and Forest Stewardship Coordinator for Alaska. She
will be a technical resource focusing on wood handling and will coordinate discussion with the
Regional Forester in the Glennallen area. Ms. Morris has a PhD in Forest Biomaterials.
DeerStone Consulting mechanical engineering staff will provide technical and project development
support and act as the Owner’s Rep for NVKK to assure that the project will meet the technical
specifications. They will review any design modifications, help monitor the quality of the installation,
and provide technical support during the commissioning and training of the operators. The
DeerStone team has over 40 years of experience in biomass energy systems, hydronic
engineering, project management, and the development of operations and maintenance systems.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
NVKK plans to use local labor through force account hiring and their own staff to complete a
significant portion of the construction that does not require specialty skills. Because the
construction of these systems involves basic pipe fitting, electrician, and other manual labor duties,
biomass projects are an excellent opportunity to increase the local capacity for construction and
maintenance activities. NVKK is committed to using local labor on this project. Using local labor will
be a factor in selection of outside contractors.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent known. For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11). Likelihood of the resource being available over the life of the project.
See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional
guidance.
The Copper River Valley has experienced a number of large forest fires in recent years which have
made available thousands of acres of standing dead trees for biomass utilization activities.
As a result, the wood biomass that is available for use in this project is very significant – far beyond
what this single project and many others combined could ever use. With the annual
tonnage of biomass required, fuel harvest would only require between six (6) to fifteen
(15) acres of the typical forest found within the Copper River Valley. This project will require
approximately 285 tons of wood chips annually (25% moisture content, 13.2 MMBTU/ton). NVKK
has recently completed a harvest plan with Ahtna Regional Corporation and is currently negotiating
harvest permits to support this project. It is the intent of the NVKK to process their own woodchips
and NVKK has already purchase a Chip grinder designed to meet the woodchip specifications of
the boiler.
A detailed resources assessment was completed for the area in 2009 and is included in the
appendix. Hanson, “Biomass Supply Analysis for the Tok Area.” Alaska Department of Forestry.
March 2009. This assessment showed approximately 2.4 million tons of allowable harvest. The
Copper River Valley’s biomass inventory dwarfs the NVKK’s demand.
Trees are regularly removed from the hazardous fuels reduction projects in the Copper River
Valley. A Community Wildfire Protection Plan (CWPP) is in development by NVKK and the State of
Alaska is currently updating all CWPP’s for the Ahtna region. This is a collaborative effort of
community leaders and state and federal agencies to address the issue of the extreme wildfire
hazard that the community faces every summer. The total amount of high volume hazardous fuels
is over 50,000 acres in the Copper River Valley and surrounding areas. By having a value for the
material, it will be possible to sustainably remove this fuel and turn a real liability into a real value.
This is extremely important to the Copper River Valley.
5.1.2 Alternatives to Proposed Energy Resource
Describe the pros and cons of your proposed energy resource versus other alternatives that may
be available for the market to be served by your project.
Alternatives for heating fuel are very limited in rural Alaska. Options in the NVKK area are limited to
propane, heat pumps and biomass. Propane is more expensive than heating fuel in the region due
to low volumes and limited delivery and storage infrastructure. It is also still an imported fuel, so the
money spent on propane is exported from the community. Heat pumps are becoming more viable
in the northern parts of Alaska, but they require low cost electric rates. Unfortunately, NVKK
electric rates, especially in the winter, are not competitive with biomass heating fuel harvested on
local lands. Biomass is the most cost-effective fuel option to replace diesel heating fuel. It is used
extensively in the region, creates local jobs, and during the first year of operation will save more
than $112,000 that would normally be exported out of the local economy for the purchase of
heating fuel.
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5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate
Best Practice Checklist for additional guidance.
● List of applicable permits
● Anticipated permitting timeline
● Identify and describe potential barriers including potential permit timing issues, public
opposition that may result in difficulty obtaining permits, and other permitting barriers
List of Applicable Permits:
Approval to Construct, from the State of Alaska Fire Marshal / Division of Fire and Life Safety.
Anticipated Permitting Timeline:
The Construction Documents have been submitted to the Division of Fire and Life Safety. Current
approval time is approximately 2 months.
Identify and Discussion of Potential Barriers:
No significant barriers are anticipated for the building permit. The design team worked
closely with the Division of Fire and Life Safety during the design of the NVKK system and
continues to answer any questions from the permitting team.
5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. 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. See the “Site control” section of the
appropriate Best Practice Checklist for additional guidance.
NVKK owns all of the facilities and the land where the biomass heating system will be constructed.
5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
● Which tasks are expected to be most challenging?
● How will the project team reduce the risk of these tasks?
● What internal controls will be put in place to limit and deal with technical risks?
See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional
guidance.
Because NVKK has been preparing for the operation of this woodchip heating systems for more
than 5 years, the risks for the proposed system are low:
● Small-scale woodchip boilers require a consistence fuel quality in size and moisture.
Operational issues can be challenging if fuel quality is not consistent, resulting in the formation
of clinkers, degradation in boiler efficiency, and increased emissions. NVKK plans to produce
their own chips so they will have control of the quality. There will be a learning curve on their
chipping operation, however, the project team has shown a strong initiative and patience in the
five years we have spent developing this project. We are committed to working through all
start-up issues. Additionally, the boiler and chip feed system has been designed to minimize
sensitivity to fuel quality fluctuations.
● Risk of construction delays - The NVKK project is well into the construction of this project.
The chip storage bunker concrete work is complete, and the containerized boiler has arrived in
the community and has been set on its concrete foundation. The remaining work includes the
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district heating piping installation, the integration to the buildings, the fabrication of the chip
storage barn, and electrical and controls installation. The hard part of the work is complete.
● Availability of a biomass resource. NVKK is collaborating with Athna for the wood supply for
its biomass heating systems. NVKK already has small crews of tribal members conducting
some wood harvest. Significant amounts of wood harvest take place in the region for wildfire
mitigation, providing a steady stream of fuel to the biomass systems. See the resource
availability discussion in section 5.1.1 for more information.
● Availability of trained staff to operate and maintain the boiler. Detailed operator and
maintenance training are included in this project to develop local capacity for technical
operations and maintenance. This training will be supplied by the boiler vendor and will be
supplemented with Alaska experts in biomass operations. Stephen and his crew will be
responsible for the O&M of the system, just as they are responsible for the O&M of all NVKK
buildings. The wood chip boiler will be added to their daily assignments. Individuals in the
region harvest firewood for residential use and are quite familiar with wood harvesting
techniques, so we expect very little challenges in hiring local crews to provide wood for
chipping that will become boiler fuel for our system.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so which project
team members will be involved and how the issues will be addressed. See the “Environmental and
Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.
● 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 describe other potential barriers
Threatened or Endangered species, habitat issues, wetlands or protected areas,
archaeological and historical resources: There are no known threatened or endangered
species or sensitive areas. The NVKK area is on a glacial outwash comprised of sand and gravel
and there are no known wetland issues in the area. There is no permafrost in the immediate area
of this project and very limited permafrost in the surrounding areas. The major habitat issue is the
natural cycle of large wildfires. This creates a large single-aged stand and forest succession that is
not ideal for most wildlife. A mosaic of small fires on the landscape creates favorable wildlife
habitat. Through active forest management, and by breaking up the continuous stands of spruce
fuel, there is a reduced risk of large fires on the landscape.
Land development constraints: There are no identified land development constraints. NVKK
does not have any designated or protected ground. There are limited archaeological and historical
resources in the area and none in the vicinity of the project site. The principal land development
constraint is the short construction season from June through September for earth work.
Telecommunications interference: There are no identified existing buried utilities or
telecommunications interference issues.
Aviation considerations: There are no identified aviation considerations for the project or harvest
operations.
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Visual, aesthetics impacts: Visual aesthetics impacts are minimal, and the boiler building will be
designed to blend with the existing structures. The project is in an already developed site with
other commercial buildings.
Identify and discuss other potential barriers: There are no other potential barriers identified.
5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only do sections applicable to your proposal. If your proposal does not include or affect the heat
recovered from the diesel gensets or include the additional electric heat loads, you can remove the
sections for power (electricity) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: generation by source on at
least a monthly basis description of control system; spinning reserve needs and variability in
generation (any high loads brought on quickly); and current voltage, frequency, and outage issues
across system. See the “Understanding the Existing System” section of the appropriate Best
Practice Checklist for additional guidance.
The NVKK tribal buildings currently utilize oil-fired hydronic boilers and space heat distribution
systems (base board radiators and heat loops) to heat the Tribal Offices and Tribal Hall with
conventional oil-fired boiler systems that are temperature controlled from thermostats. The Tribal
Hall is being converted to hydronics from a forced air furnace. The CLRC was designed with an oil-
fired hydronic system and is currently being installed. The boilers and furnace’s fuel usage are
summarized in section 5.4.2.2. As with most oil-fired system, the boilers are oversized, experience
frequent short cycling, and have low efficiencies (estimated conservatively at 75%) but are still
operational. The boilers will be left in service to operate as emergency back-ups and for meeting
peaking loads above the capacity of the woodchip system.
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5.4.2 Existing Energy Generation and Usage
In the following tables, only fill in areas below
applicable to your project. You can remove extra
tables. If you have the data below in other formats,
you can attach them to the application (see Section
11).
5.4.2.1 Existing Power Generation Units (if
Unit
#
Resourc
e/
Fuel type
Design
capacit
y (kW)
Make Mo
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
5.4.2.2 Existing Thermal Generation Units
Generatio
n unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/hr
)
Make Model Average
annual
efficienc
y
Year
Installe
d
Hours
Tribal Hall Heating
oil
2 x 92,000
BTU/Pow
er
Colema
n
1.3
GPM
Power
Heads
78% 1980’s unknow
n
Garage Heating
oil
40,000 Toyo Laser
73
75% 2015 unknow
n
Tribal
Offices
Heating
oil
~50,000 Unknow
n OLD
Furnace
Unknow
n
~70% Pre-
1980
unknow
n
HeadStart Heating
oil
112,000 Energy
Kinetics
2000 80% 1989 unknow
n
5.4.2.3 Operations and Maintenance (O&M) and replacement costs for existing heating units
i. Annual O&M cost for labor Incorporated into existing facilities job, mechanic
performs annual preventative maintenance and repairs
equipment failures.
ii. Annual O&M cost for non-labor Estimated at $1000/year for parts
iii. Replacement schedule and cost for
existing units
5.4.2.4 Annual Electricity Production and Fuel Consumption (Existing System)
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Use most recent year.
Include only if your project affects the recovered heat off the diesel genset or will include
electric heat loads
Month Generatio
n (Type
1)
(kWh)
Generatio
n (Type
2)
(kWh)
Generatio
n (Type
3)
(kWh)
Fuel
Consumptio
n
(Diesel-
Gallons)
Fuel
Consumptio
n
[Other]
Pea
k
Loa
d
Minimu
m Load
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total
5.4.2.5 Average Annual Heating Fuel Consumption (Existing System)
Month Heating
oil
(Gallons)
Electricity
(kWh)
Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January 4199
February 3412
March 3081
April 2207
May 1641
June
July
August
Septembe
r 1444
October 2476
November 3351
December 3831
Total 25644
5.4.3 Future Trends
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Describe the anticipated energy demand in the community, or whatever will be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
The wood chips boilers are designed to displace approximately 90% of the existing heating load for
the proposed district heating loop. Average fuel usage is 25,644 gallons per year. Please see the
appendices for the breakdown of existing heating system usage. Estimates for the CLRC and
upgraded Tribal Hall were developed by the engineering firms designing the heating systems. The
Tribal Offices, garage, and Headstart are actual usages. The chip boilers is designed to displace
about 90% of the heating oil usage – it will approximately displace 23,079 gallons.
Because the population of NVKK has been relatively stable and there are not any anticipated
changes to this trend, the energy demand is expected to remain stable for the life of the woodchip
boilers, 20 years.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
● A description of renewable energy technology specific to project location
● The total proposed capacity and a description of how the capacity was determined
● Integration plan, including upgrades needed to existing system(s) to integrate renewable
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that will be included in the project
● Civil infrastructure that will be completed as part of the project — buildings, roads, etc.
● Include what backup and/or supplemental system will be in place
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
NVKK is constructing a small-scale woodchip heating system to heat the Tribal Hall, CLCR, and
Tribal Offices. The engineering design was completed by Coffman Engineers with a grant from the
USFS Wood Innovations Program. The proposed system consists of a woodchip boiler located in a
connex supplied by Twin Heat. Wood will be loaded into a chip bunker with 2 “rotag” units—transfer
systems with a rotating metal spring to feed chips into a screw conveyor. This screw conveyor
transports chips to the boiler for combustion. Ash is automatically removed from the boiler with an
ash conveyor below the combustion zone.
Chips will be stored in a 3-sided fabric building very similar to the buildings in Tok and Galena that
have been storing chips for more than 5 years. A bobcat will transfer the chips from the storge barn
to the “rotag” approximately one to twice per week, depending on the heating load of the buildings.
The woodchip boiler will heat water to approximately 180º. The hot water is then pumped through a
district heating loop of underground piping. Each building serviced by the district heating loop will
have a heat exchanger to integrate the heat into the building. The separate heat exchangers will
protect each building from a piping failure.
The design calls for redundancy for critical equipment such as all feed pumps and critical control
valves. The boiler is also designed with failsafe heat rejection in the event of a power failure during
a combustion cycle. Heat from the boiler water jacket is rejected to the atmosphere with a “fail open”
solenoid valve in the piping.
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The diagram below illustrates the piping and controls and sequence of operation for the biomass
boiler system.
Within each building receiving heat from the district heating loop, hot water from the heat exchanger
will be piped into the existing system and controlled in a way that the oil boiler will automatically start-
up if the heat from the biomass boiler is insufficient to meet the building heating demand. The existing
heat distribution equipment will be upgraded to accept the piping from the district heating system.
The existing oil boilers will be left in place to serve as emergency back-ups and as peaking loads
during the coldest days. Controls are in place to prevent back-feeding of heat from the oil boiler
systems. The following diagram illustrates the building integration design.
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The boiler specified by Coffman Engineers is a containerized Twin Heat boiler supplied by Biomass
Systems Supply. The boiler is a model C5250i capable of supplying 819,000 BTU/hr. This boiler was
sized to support 90% of the anticipated heating load of the NVKK associated buildings.
The boiler has already been purchased and received by NVKK and is in place on its foundation. This
is the same boiler manufacturer that is supplying the wood chip boiler for the Craig High School.
Because of the size of the district heating loop, Coffman Engineers did not include a thermal storage
tank in the design. The volume of water in the loop will act as the thermal storage. This design was
vetted through the Alaska Wood Energy Development Task Group.
5.4.4.1 Proposed Thermal Generation Units
Generation
unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/h
r)
Make Model Expected
Average
annual
efficiency
Expected
life
Wood Chip
Boiler
Wood
Chips
819,000 TwinHeat C5250i 75% 20 years
5.4.5 Basic Operation of Proposed Energy System
● To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
● When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
A simple temperature setpoint controller with a high/low setpoint will control the operation of the
wood chip boiler. As the district heating loop demands heat, wood chips will be automatically
conveyed to the boiler where combustion is automatically started. Hot water is pumped to the
district heating loop. (The boiler must be manually started at the beginning of the heating system
but remains warm throughout the heating season to facilitate automatic firing.)
When the buildings call for heat, water is pumped from the district heating loop to the heat
exchanger in the building calling for heat. Individual buildings will start their heat injection pump
and pull heat from the district heating loop through the heat exchanger. Heat will be circulated
within the existing building through a heat circulation loop from the heat exchanger.
If the wood chip heating system cannot provide enough heat, the existing oil boiler system will
automatically turn on to supplement the heat demand. The wood chip distribution system will be
the “lead” and the oil boiler system will be the “lag” in the control language.
The actual sequence of operation can be found on M-100 of the final design documentation.
5.4.5.1 Annual Heating Fuel Consumption (Proposed System)
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Month Heating
oil
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January 47
February 37
March 34
April 24
May 18
June 0
July 0
August 0
Septembe
r
17
October 29
November 38
December 41
Total 285
5.4.6 O&M, Replacement, and Other Costs for Proposed System
i. Annual O&M cost for labor Incorporated into existing facilities job, fuel handling
labor is included in the cost of delivered chips.
ii. Annual O&M cost for non-labor $3000 – conservatively based on manufacturer
recommendations, Mentasta and Teslin, YK experience,
includes replacement of typical parts (pumps, etc.)
iii. Replacement schedule and cost for
proposed units
Included in the above estimate.
iv. Other new costs (insurance, taxes, etc.)
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
$65/ton
Annual
Units
268
Total
Annual
cost ($)
$17,420
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
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Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the RFA.
Because the NVKK wood chip heating system will only be supplying heat to its own buildings, there
is no need for revenue grade Btu meters. To meet the metering requirements for this grant, a flow
meter and temperature probes will be installed on the discharge of the wood chip boiler to document
the output of the system. This will allow us to understand the heating fuel displaced by our renewable
energy system. The flow meter and temperature meters are part of the boiler system and will require
no additional equipment purchases.
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the RFA
Production metrics, fuel usages, and operations/maintenance cost will be collected on a monthly
basis and tracked in our existing accounting system with uses QuickBooks and standard account
methods. This information will be reported annually to AEA in the required format.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Direct Economic Benefits
Annual Lifetime
Anticipated Diesel Fuel Displaced for
Power Generation (gallons)
Anticipated Fuel Displaced for Heat
(gallons)
23,079 461,580
Total Fuel displaced (gallons) 23,079 461,580
Anticipated Diesel Fuel Displaced for
Power Generation ($)
Anticipated Fuel Displaced for Heat ($) 1st year - $102,228
$2,104,279
Anticipated Power Generation O&M Cost
Savings (Increases)
Anticipated Thermal Generation O&M Cost
Savings (Increases)
($3,000) ($60,000)
Total Other costs savings (taxes,
insurance, etc.)
Total Fuel, O&M, and Other Cost Savings $82,128 $1,251,055
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
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Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts.
The economic model used by AEA is available at https://www.akenergyauthority.org/What-We-
Do/Grants-Loans/Renewable-Energy-Fund/2022-REF-Application . This economic model may be
used by applicants but is not required. The final benefit/cost ratio used will be derived from the
AEA model to ensure a level playing field for all applicants. If used, please submit the model with
the application.
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable
energy project: The project will annually displace the equivalent of 23,079 gallons of fuel oil #1. The
average price in 2022 was $4.43/gallon. See the appendices for heating oil receipts for 2022. Over
the 20-year lifetime of the project, the project will displace 461,580 gallons of fuel oil, with a current
fuel value of more than $2.1 million.
This system will burn 285 tons of woodchips annually at a cost of $60 per ton. The total lifetime
project savings including purchased wood fuel will be $1,251,055.
In the first year of operation, the wood chip heating system is expected to save the village more than
$80,000 that will be used for providing additional services to the community members of NVKK.
The B/C ratio of this project is calculated at 1.21. The assumptions used in the analysis are:
● Wood heating value – 13,200,000 mmBtu/ton – 25% moisture.
● Oil boiler efficiency – average of 75% due to age and conditions of the boilers and furnaces.
● Chip boiler efficiency – 75% - source – TwinHeat Boiler manufacturer.
● Annual Chip usage – 285 tons
● Annual O&M and replacement costs for the wood chip boiler – Manufacturer’s recommendations
for annual cost is $3000. This is a very conservative estimate based on the Mentasta experience.
Most labor will be included in the existing jobs of the facilities crew. The AEA recommended 1.5%
of the capital costs is relevant for much larger wood heating systems such as the one at Tok
School. The small systems using high quality chips have lower maintenance, replacement and
operations cost.
● Annual O&M and replacement costs for the existing oil boilers – $1000 – existing systems will
remain in service so reduction in cost will be minimal.
● Price of wood chips at 25% moisture – $60/ton – NVKK is developing their own chip processing
plant. This is a conservative estimate based on twice the cost of wood chips manufactured by
the Alaska Gateway School District for Tok School. NVKK will be utilizing wood harvested for
hazardous fuels removal for wildfire mitigation so harvest costs will be minimal. NVKK will also
be able to keep the cost of the chips low because they own a chipper and a dump truck for
delivery to the bulk storage barn.
● Boiler life – 20 years
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
● Low prices for diesel and/or heating oil
● Other projects developed in community
● Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
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● Deferred and/or inadequate facility maintenance
● Other factors
● Because the existing fuel oil boilers and furnace will remain in operation, there is minimal risk
related to low heating oil prices. This project will give NVKK the option to run the lowest cost
fuel in their systems. If oil drops below the cost of biomass, the biomass system can be
mothballed until fuel oil prices rise again – which they always do!
● There is no economic risk to this project if other renewable energy projects are developed in
the community. The school district is not depending on any heat sales agreements. This project
is limited to structures in NVKK.
● The population of NVKK has remained fairly stable at approximately 650 tribal and non-tribal
residents.
● Deferred or inadequate facility maintenance can cause significant operational issues with a
woodchip heating system. NVKK has spent a significant amount of time researching wood
heating systems and is knowledgeable on the O&M requirements. We are extremely motivated
to use this wood chip system to create local jobs and to develop a use for waste wood
harvested for wildfire mitigation.
6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills, cruise ships,
mines, etc.), please provide a brief description of the direct and indirect public benefits derived
from the project as well as the private sector benefits and complete the table below. See section
1.6 in the RFA for more information.
N/A
Renewable energy resource availability (kWh per month)
Estimated direct sales to private sector businesses (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Other Public Benefit
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
● The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that
can be used for other purposes
● The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
● The project will solve other problems for the community (waste disposal, food security, etc.)
● The project will generate useful information that could be used by the public in other parts of
the state
● The project will promote or sustain long-term commercial economic development for the
community
The economics of biomass heating systems are historically challenging because they are usually
small systems with relatively high capital costs. In the last 2 years, we have witnessed a swing from
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historically low to historically high heating fuels costs. This continuous volatility in the heating oil
market makes the other benefits of biomass systems are extremely important for economic
development in our communities. Other biomass projects throughout Alaska have shown that the
few jobs created from a wood heating project are enough to spur significant economic development
and a reduction in the local poverty levels.
● The immediate public benefit from this project is NVKK will spend fewer dollars on heating their
buildings. These savings will be used to create more jobs in NVKK and support existing
programs that benefit tribal members such as firewood to elders.
● With the availability of low-cost heat, NVKK would like to eventually develop a greenhouse
system to address local food security.
● Improving the viability of wood energy in the Copper River Valley will increase the utilization of
hazardous fuels from the area forests. Removing these fuels makes the communities safer,
supplies a sustainable form of low-cost heating fuel for buildings, initiates a viable long-term
energy strategy, and is the foundation of an industry that will create long-term viable timber
industry employment for the residents of the region. This project is expected to create 2-3 part-
time timber harvest and processing jobs.
● This project will provide an additional market for low-quality wood waste and value-added use
for standing dead and beetle kill trees.
● The project provides “proof of concept” and a demonstration of a chip bunker with multiple
rotags feeding a boiler contained in a connex. This system is used extensively in Europe and
on the east coast of the U.S. but has never been used in Alaska. This fuel feed system is less
than half the cost of other walking floor chip feed systems with much lower maintenance
requirements. NVKK is willing to provide tours to the facility to help potential biomass owners to
understand this new chip feed technology.
● Roads are created when wood is harvested in the Copper River Valley. These roads allow the
harvesting equipment to be brought to the harvest areas and allow for the wood to be
transported for processing. These newly created roads are used by hunters, hikers, and other
recreational users.
● NVKK has already purchased a sawmill to use locally harvested wood to produce lumber for
much needed housing construction. The wood chips system will use the waste wood from the
sawmill. NVKK is taking major steps to develop a regional biomass-based industry that has the
potential to create even more local jobs while reducing the cost of energy.
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects, a business and operations plan should be attached and the
applicant should describe how it will be implemented. See Section 11.
7.1.1 Operation and Maintenance Sustainability
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
● Provide examples of success with similar or related long-term operations
● Describe the key personnel that will be available for operating and maintaining the
infrastructure.
● Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system.
● Describe the systems that will be used to track necessary supplies
● Describe the system will be used to ensure that scheduled maintenance is performed
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● The NVKK woodchip heating system will be managed by Stephen Davidson and his
maintenance crew. This is the same staff that manages the existing heating systems and heavy
equipment maintenance in NVKK.
● Training for the NVKK operators will take place in two parts. They will be part of the force
account crew for the construction of the system so that they will understand the design and
installation details of the boiler and associated piping and controls. During the commissioning
process, they will go through boiler specific operational and maintenance training per the
manufacturer recommendations, led by the boiler supplier and technical consultants.
● There are other wood chip boilers located in Mentasta and Tok, so there is a support network
for operations questions.
● Spare parts have been purchased with the boiler and the boiler supplier is proving preventative
maintenance inspection requirements, preventative maintenance tasks list, and detailed
instructions.
● Stephen will manage the purchase of replacement parts utilizing the existing in place system
and protocols for community maintenance.
7.1.2 Financial Sustainability
● Describe the process used (or propose to use) to account for operational and capital costs.
● Describe how rates are determined (or will be determined). What process is required to set
rates?
● Describe how you ensure that revenue is collected.
● If you will not be selling energy, explain how you will ensure that the completed project will be
financially sustainable for its useful life.
Because NVKK will be providing heat to its own facility, there are no rate setting requirements or
revenue considerations in this project. We will use the existing accounting system and procedures
to account for all operational and capital costs. We have successfully managed more than ten
Federal and State grants in the last five years and are able to provide accounting details upon
request. All operational and maintenance costs will be inputted into QuickBooks under a separate
account for the Biomass Heating System. The Chip processing plant will also have separate
accounting so that the community understands the cost of the chips produced. The funds saved
from displacing 23,000 gallons of heating fuel each year will fund the O&M cost of the wood chip
heating system. Because we will be producing our own chips and resulting heat, we will be
insulated from the vagaries of the heating fuel market, thus making this system more sustainable
over time.
7.1.2.1 Revenue Sources
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. If there is expected to be multiple rates for electricity, such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and capital costs
● What is the expected cost-based rate (as consistent with RFA requirements)
● If you expect to have multiple rate classes, such as excess electricity for heat, explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA’s white paper on excess electricity for heat).
● Annual customer revenue sufficient to cover costs
● Additional incentives (i.e. tax credits)
● Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
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N/A – all heat will be used by the system owner – NVKK
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following:
● Identification of potential power buyer(s)/customer(s)
● Potential power purchase/sales price - at a minimum indicate a price range (consistent with the
Section 3.16 of the RFA)
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant-funded project. Include letters of support
or power purchase agreement from identified customers.
N/A
SECTION 8 – PROJECT READINESS
8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
● The phase(s) that must be completed prior to beginning the phase(s) proposed in this
application
● The phase(s) proposed in this application
● Obtaining all necessary permits
● Securing land access and use for the project
● Procuring all necessary equipment and materials
Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation.
The development of the NVKK Woodchip Heating Project has followed the traditional project
development process. A pellet prefeasibility study through the USFS/AWEDTG was conducted by
Coffman Engineers in NVKK in 2014 on the CLRC. The prefeasibility study indicated a positive
biomass project potential due to their high cost of heating fuel and large annual heating fuel usage.
The prefeasibility study is included in the supplemental documents.
In 2019, AGSD applied to the USFS and received a grant to complete the final design and boiler
procurement for this proposed project. NVKK hired Coffman Engineers for their extensive
experience designing wood heating system in rural Alaska, and the design was completed in
December of 2021. Members of the AWEDTG were involved in the development of the conceptual
design and the design reviews. Final Fire Marshal permitting is in progress and the permit is
expected before the 2023 construction season.
Resource assessments have been completed by State of Alaska Division of Forestry and a harvest
plan was developed by AHTNA (see appendices). NVKK has purchased a grind for chip
processing and local tribal members have been conducting small hazardous fuels harvesting.
In 2021, NVKK received initial construction funding from the Denali Commission for this project and
the concrete work for the chip bunker, boiler foundation, and chip storage foundation were
completed in 2022. The containerized boiler was received and placed on its foundation.
This project is proposing the completion of the final step in the development of this project –
construction and commissioning. This includes the installation of the district heating loop, the
building piping integrations, the fabrication of the chip storage barn, and electrical and controls
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installation. Site control is not a concern because NVKK owns the land. Project procurement is
mostly complete.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including:
1.Explain how it will improve the success of the renewable energy project
2.Energy efficiency pre and post audit reports, or other appropriate analysis,
3.Invoices for work completed,
4.Photos of the work performed, and/or
5.Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
Within the last five years, significant energy efficiency work has taken place in the Tribal Hall.
Insulation and new doors have been installed on the structure and the village is in the process of
replacing the old inefficient forced air furnace with a modern hydronic system. NVKK has spent
approximately $200,000 to date on this building retrofit and has budgeted an additional $150,000
for the completion of the new heating system.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. Provide letters of support, memorandum of understandings, cooperative agreements
between the applicant, the utility, local government and project partners. The documentation of
support must be dated within one year of the RFA date of October 4, 2022. Please note that letters
of support from legislators do not count toward this criterion
Biomass is becoming a way of life in the Copper River Valley, and there is extensive support for
this project from the community.
Resolution of support and commitment from:
●NVKK Tribal Council
Letters of support are included from:
●Alaska Wood Energy Development Task Group
●USDA
●Denali Commission
●Ahtna
●DeerStone Consulting
●AITRC
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority for
this or any other project. Describe the degree you have been able to meet the requirements of
previous grants including project deadlines, reporting, and information requests.
NVKK has not received any previous funding from the Alaska Energy Authority. This biomass
heating project has received $250,000 from the USFS Wood Innovations Program and $315,000
from the Denali Commission. All project reporting is up to date for both of these grants. Both grants
have been extended due to shipping/logistical concerns during the last 2 years of COVID.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below, please provide a list of additional documents attached to support completion of
prior phases.
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● Wood Innovations Grant Award
● Denali Commission Grant Award
● USFS/AWEDTG Pre-Feasibility study
● Coffman Engineers IFC Drawing
● Harvest Plan and Wood Inventory
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
● Detailed Project Budget
● B/C ratio analysis
● Latest Heating Fuel Invoices
● Historical Fuel Usages
● Resumes
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SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A.Contact information and resumes of Applicant's Project Manager, Project Accou tant(s},key staff, partners, consultants, and suppliers per application form Section 3.1, 314 and
3.6. Applicants are asked to provide resumes submitted with applications in separate electfi,1 nic documents if the individuals do not want their resumes posted to the project website. I B.Letters or resolutions demonstrating local support per application form Section 9.C.For projects involving heat: Most recent invoice demonstrating the cost of heati lg fuelfor the building(s} impacted by the project. I D.Governing Body Resolution or other formal action taken by the applicant's govemingbody or management per RFA Section 1.4 that:•Commits the organization to provide the matching resources for project at the matchamounts indicated in the application.•Authorizes the individual who signs the application has the authority to commit theorganization to the obligations under the grant.•Provides as point of contact to represent the applicant for purposes of thisapplication.•Certifies the applicant is in compliance with applicable federal, state, and local, lawsincluding existing credit and federal tax obligations.I E.An electronic version of the entire application on CD or other electronic media, per RFASection 1.7.F.CERTIFICATIONThe undersigned certifies that this application for a renewable energy grant is truthtul 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 t·ndthat they can indeed commit the entity to these obligations. I Print Name Willard E. Hand I IISignature ;VW bt � J Title Tribal Administrator Date 11-29-2022
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