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HomeMy WebLinkAboutAPP_Heat Application FormRenewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 1 of 31 7/20/2020 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 13 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: www.akenergyauthority.org/what-we-do/grants-loans/renewable-energy-fund- ref-grants/2020-ref-application. What follows are some basic information and instructions for this application:  The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year solicitation cycle with an opt-out provision in the second year of the cycle.  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 13 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 Manager Karin St. Clair by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 2 of 31 7/20/2020 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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 3 of 31 7/20/2020 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) City Of Nenana Tax ID # Date of last financial statement audit: Mailing Address: Physical Address: PO BOX 70 723 A STREET NENANA AK 99760 NENANA AK 99760 Telephone: Fax: Email: 907-888-9065 NENANACLERK@GMAIL.COM 1.1 Applicant Point of Contact / Grants Manager Name: Title: JARET LAURENCE DIRECTOR OF PUBLIC WORKS Mailing Address: PO BOX 70 NENANA AK 99760 Telephone: Fax: Email: 907-888-9065 JARET.LAURENCE@GMAIL.COM 1.1.1 Applicant Signatory Authority Contact Information Name: Title: JOSHUA VERHAGEN NENANA MAYOR Mailing Address: PO BOX 70 NENANA AK Telephone: Fax: Email: 907-888-5037 NENANAMAYOR@GMAIL.COM 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 4 of 31 7/20/2020 1.2 Applicant Minimum Requirements 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 www.akenergyauthority.org/what-we- do/grants-loans/renewable-energy-fund-ref-grants/2020-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) Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 5 of 31 7/20/2020 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. NENANA BIOMASS AND WASHETERIA 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. Latitude Longitude [Other description of location] The Nenana Biomass Facility will be located on the North West Corner of C street and 2nd Street. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The city of Nenana and its citizens and tribal members will be to sole beneficiaries of this project. The Nenana Public School, The Fire Department Building and the City’s Water Treatment Plant will be heated with the energy supplied by the biomass facility. 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 Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 6 of 31 7/20/2020 2.4 Project Description Provide a brief, one-paragraph description of the proposed heat project. The city of Nenana is making remarkable strides towards the construction of a multi-purpose biomass facility. When completed, the project will meet multiple needs within the city. For instance, it will supplement the heating requirements of municipal buildings and house a washeteria (public showers, laundry, water filling station). The facility and operation will support local employment, support and improve community sanitation, potentially revitalize local milling industry and the biproducts of the wood combustion will be a major source of marketable biochar – a soil amendment that helps to increase soil fertility for agriculture 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 City of Nenana is requesting funding for the construction of the biomass structure and installation and integration of the thermal distribution system. 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 Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 7 of 31 7/20/2020 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 DESIGN JAN.20 21 ENGINEER STAMPED DESIGN DOCUMENTS 2 FOUNDATION PERMITING SEPT 2020 STATE FIRE MARSHAL PERMIT 3 SITE PREP FOUND CONSTR OCT 2020 COMPLETED FOUNDATION 4 VERTICAL CONSTRUCTIO N STEEL FABRICATION MAY – JULY 2021 PROCUREMENT OF CONSTRUCTION MATERIALS AND BUILDING ERECTION RFP’s 5 INFLOOR PIPIING AND SLAB SPRI NG 2021 SUMM ER 2021 PHOTOS OF COMPLETED SLAB AND INFLOOR PIPING 6 THERMAL DISTRIBUTION SYSTEM MAY – SEPT 2021 PROCURMENT OF PIPEING SYSTEM AND INSTALLATION– RFP’S, MONTHLY PROGRESS REPORTS 7 MECHANICAL – ELECTRICAL SUMM ER 2021 OPERATION OF BIOMASS BOILER 8 INTERIOR FINISH AND SITE WORK OCT 2021 OCCUPANCY PERMIT 9 FINAL CLOSEOUT OCT 2021 OCCUPANCY PERMIT AND FINAL PROJECT REPORT 10 ANNUAL REPORTING OCT 21 ANNUAL PERFORMANCE REPORT PER AEA FORMAT 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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 8 of 31 7/20/2020 Grant funds requested in this application $ Cash match to be provideda $ 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. . 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. The City of Nenana will fund possible overages of each phase of the project with out of pocket funds. However, no phase of the project can be fully funded by the city. The project must be funded by grand awards from multiple sources. The CARES act has been integral in completing phases 2 and 3 of the project. The City is requesting funding for phases 4 and 5. 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] $ Feasibility and Conceptual Design [Actual] $20,000 Final Design and Permitting [Actual/Estimated] $26k so far, $100k plus Engineering Grant to be spent Construction [Actual/Estimated] $108k so far, with $894k estimated to complete project Total Project Costs (sum of above) Estimated $1048,000 Metering/Tracking Equipment [not included in project cost] Estimated $3000 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) Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 9 of 31 7/20/2020 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 Manager Karin St. Clair 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 $ $ $ Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 10 of 31 7/20/2020 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 $ $ $ Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 11 of 31 7/20/2020 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 ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 12 of 31 7/20/2020 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 ) $ $ $ VERTICAL CONSTRUCTION AND STEEL FABRICATION MAY – JULY 2021 $ $ $ 150,000 IN-FLOOR PIPING AND SLAB $ $ $200,000 THERMAL DISTRIBUTION SYSTEM $ $ $150,000 MECHANICAL AND ELECTRICAL $ $ $114,000 INTERIOR FINISH AND SITE WORK $ $ $280,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ 894,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 13 of 31 7/20/2020 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. Lars Construction has provided a cost estimate for phase 4 (VERTICAL CONSTRUCTION AND STEEL FABRICATION) of the project. Lars estimate include completing the steel structure and enclosing the building before laying in-floor piping and pouring concrete slab. 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 City of Nenana has a capable team and considerable biomass support consultancy team through the Alaska Wood Energy Development Task Group. Bi-weekly collaboration meetings are held to received input from the task group and to take advantage of the lessons learned in other biomass projects in Alaska. Project updates are given at each meeting and project planning is discussed. The grant manager, Jaret Laurence, will be responsible for the monthly grant reporting to AEA and will include tasks completed, tasks planned for the next reporting period. The reports will also discuss any items that are behind schedule along with a resolution plan. A reporting schedule and all documentation will be kept to substantiate all reports to AEA. 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. The City of Nenana has hired Jaret Laurence to oversee and manage grants regarding the biomass project. Jaret is required to make monthly reports of grant funding allocations and distributions to the city Mayor and the city’s bookkeeper. All grant records will be maintained at the city offices for audit review and reporting. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 14 of 31 7/20/2020 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. The Project phases 1-3 have been, managed by Rex Goolsby with Lars Construction LLC. Construction phases 4-9 will also be managed by Rex. His company was sought out and contracted for this project on his merits as a builder of other energy projects, such as the Tok Alaska Biomass Facility. 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. In partnership with Midnight Sun Book Keeping, the City of Nenana will have its grant manager coordinate accounting, and reporting on this grant. The city has used Midnight Sun Bookkeeping for accounting purposes on previous grant awards and has proven to be a reliable partner as a project accountant. 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. The Project team consists of Rex Goolsby and his construction Team, Josh Verhagen Nenana’s Mayor, Jaret Laurence the Public Works Coordinator and grant coordinator, an experienced team of Biomass specialists throughout the state of Alaska from many different organizations. Some of the team members include: Karen Peterson – AEA biomass coordinator for the SE conference Devany Plentovich – Plenergy Solutions Forest Shreeve – City of Nenana Maintenance Director and Future Biomass Boiler Operator Mike Hirt – Alaska BTU Joel Toth – Biomass Energy Techniques Priscilla Morris – Wood Biomass and Forestry Stewardship Coordinator. Taylor Asher – AEA Biomass Efficiency Program Lead. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 15 of 31 7/20/2020 This is not comprehensive list of team members. The city has had additional support form members of ANTHC and TCC 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. The City of Nenana has contracted with local community members for the foundation construction phase of the project. At this stage in the project, 3 community members and 3 city employees have been employed in the foundation construction. The city will continue to seek out local skilled and unskilled labor from the greater Nenana community as the project progresses. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 16 of 31 7/20/2020 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 biomass operation will not be up and running until the fall of 2021. However, it is important that Nenana facilitate the necessary relationships early with local companies, municipalities or burrows who can supply fuel for the biomass boiler. The city has sought out appropriate contacts and begun developing relationships with local businesses to provide a consistent and reliable fuel supply. As of August 2020, the city has identified 3 sources of biomass fuel. Local millers – Rob Bennett Enterprises runs a modest milling operation in Nenana. Rob’s company has committed to be a supplier of sawdust and wood chips. Also, the Toghotthele corporation owns significant amounts of land near Nenana which it uses for lumber harvests. The City is actively seeking a business relationship with Toghotthele to accept its milling waste Solid Waste Disposal and Recycle Center – The city has begun to construct a solid waste disposal site one mile south of the town. The city will accept green brush and clean wood materials from its residents free of charge to be used as biomass fuel. Out-side sources. – In July 2020 the Josh Verhagen, City Mayor met with the Denali Burrow mayor to discuss accepting green brush waste. Currently the Denali borrow does not accept green brush at its transfer sites or landfill. This is a major problem for Denali Burrow residents as they have no place to dispose of green brush. If an agreement is made the Denali Borrow will be a major supplier of clean wood fuel. 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. Pros of Biomass Use of Renewable fuel source. This Biomass facility will provide local employment. Provide a resource of green brush disposal. Revitalize local logging and milling within the great Nenana area. Lower heating costs for the public school, Water Treatment Plant, and Fire Department. Bio-chare production too support local agricultural activity Cons of Diesel Fuel Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 17 of 31 7/20/2020 Higher energy cost Non-renewable fuel source Non-local fuel source Outsourcing community dollars Greater Environmental hazard Other alternatives considered and rejected were: Heat Pumps – the electric rates in Nenana are too high to complete with local biomass. Propane – propane is an imported fuel and is not cost competitive with local biomass. 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 Foundation permit – This permit as received in September 2020. Structural permit – The city of Nenana was awarded a $100,000 grant for AEA for design and engineering of the facility. The city must issue and RFP for the engineering and permitting. The city will use the AEA funds and matching funds to complete the design engineering and permitting of the structure. Occupation permit – The city will pay out of pocket to this permit at the completion of the project. 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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 18 of 31 7/20/2020 Three city Lots on Block 9 have been designated for the biomass/washeteria site. The following image shows where the planned washeteria will sit on the Block. Currently, the lots are being prepared for the concrete foundation which will be poured in phases this fall. If budgets allow, the foundation will be completed in the 2020 construction season. As can be seen in the image to the right, there will be sufficient space for construction activity and ultimately patron parking. The second image illustrates the locations of the biomass/washeteria facility within the community. The blue arrow shows where the biomass/washeteria is located on the corner of C and 2nd street. Of all city owned Lots, this one is ideal, as it is centrally located within the community for patrons to use the washeteria. It is also strategically located for heating purposes. As can be seen from the image, the heating facility is between the public school, fire department, water plant, and library. The ideal location will help to mitigate heat energy loss as heated water is conveyed to these buildings. 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. Lack of maintenance – Although the biomass boilers will save the city substantial heating costs, the new system will add to significantly to employee costs. The boiler will need to routinely maintained and resupplied during months of operation. Biomass facilities require more man hours to operate that traditional heating oil boiler units. The City has identified and and accepted an applications for a certified operator to run its facility. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 19 of 31 7/20/2020 Trained biomass operator – Many smaller Alaska communities have challenged with hiring qualified and or trained individuals. The biomass facility will require focused training and on the job experience to operate the system correctly. The City forces that this may be a challenge and has already identified a number of individuals to fulfill the role of biomass operator. The City has identified a certified operator to run its facility. 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 The biomass facility poses no known environmental risks. The manufacturer has completed studies to show that discharge particulates are substantially lower than comparable boiler models. As stated in section 5.1 of this application, bio fuel procurement will depend open milling operations and community green brush waste. The city will not incentivize biofuel providers financially to obtain fuel. Property owners will have the opportunity to dispose of unwanted overgrown brush and wood. 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 building to be heated by the biomass are the Public School, Water treatment Plant, and Volunteer fire department building. Each of these facilities are currently heated with older model heating oils boilers. These systems will not be removed from operations to be replaced by the Biomass system. The biomass system is expected to subsidize the current system and reduce heating oil consumption anywhere from 65% to 85%. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 20 of 31 7/20/2020 5.4.2.2 Existing Thermal Generation Units Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Average annual efficiency Year Installed Hours 5.4.2.4 Annual Electricity Production and Fuel Consumption (Existing System) Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads Month Generation (Type 1) (kWh) Generation (Type 2) (kWh) Generation (Type 3) (kWh) Fuel Consumption (Diesel- Gallons) Fuel Consumption [Other] Peak Load Minimum Load January February March April May June July 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 applicable to your project) Unit # Resource/ Fuel type Design capacity (kW) Make Model Minimum design load Year Installed Hours of Operation Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) 5.4.2.3 Operations and Maintenance (O&M) and replacement costs for existing heating units i. Annual O&M cost for labor ii. Annual O&M cost for non-labor iii. Replacement schedule and cost for existing units Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 21 of 31 7/20/2020 August September 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 February March April May June July August September October November December Total 5.4.3 Future Trends 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. 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 Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 22 of 31 7/20/2020  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. 5.4.4.1 Proposed Thermal Generation Units Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Expected Average annual efficiency Expected life 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. 5.4.5.1 Annual Heating Fuel Consumption (Proposed System) Month Heating oil (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January February March April May Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 23 of 31 7/20/2020 June July August September October November December Total 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 ($) Annual Units Total Annual cost ($) 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the RFA. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the RFA 5.4.6 O&M, Replacement, and Other Costs for Proposed System i. Annual O&M cost for labor ii. Annual O&M cost for non-labor iii. Replacement schedule and cost for proposed units iv. Other new costs (insurance, taxes, etc.) Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 24 of 31 7/20/2020 SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Direct Economic Benefits Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) Anticipated Fuel Displaced for Heat (gallons) Total Fuel displaced (gallons) Anticipated Diesel Fuel Displaced for Power Generation ($) Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost Savings (Increases) Anticipated Thermal Generation O&M Cost Savings (Increases) Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings 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. 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 www.akenergyauthority.org/what-we-do/grants- loans/renewable-energy-fund-ref-grants/2020-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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 25 of 31 7/20/2020 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.  Deferred and/or inadequate facility maintenance  Other factors 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. 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 Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 26 of 31 7/20/2020 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 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. 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) Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 27 of 31 7/20/2020  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) 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. 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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 28 of 31 7/20/2020 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. 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 July 20, 2020. Please note that letters of support from legislators do not count toward this criterion 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. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 29 of 31 7/20/2020 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. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 30 of 31 7/20/2020 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: Phone Number: Fax Number: Email Address: Federal Tax ID #: EIN # 92-60001390 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 13 Grant Application – Heat Form AEA 21010 Page 31 of 31 7/20/2020 SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project website. B. Letters or resolutions demonstrating local support per application form Section 9. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that:  Commits the organization to provide the matching resources for project at the match amounts indicated in the application.  Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant.  Provides as point of contact to represent the applicant for purposes of this application.  Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Josh Verhagen Signature Title Mayor Date 9/28/20