HomeMy WebLinkAboutAPP_13006-REF Round 13 Grant ApplicationRenewable Energy Fund Round 13
Grant Application -Heat Form
SECTION 1 -APPLICANT INFORMATION
ALASKA
ENERGY
AUTHORITY
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
I Name (Name of utility, IPP, local government, or other government entity)
I Alaska Gateway School District
Tax ID # 92-0058369
Date of last financial statement audit: December 2019
Mailing Address: Physical Address:
P.O. Box 226 Mile 1313.5 Alaska Highway
Tok, AK 99780 Tok, AK 99780
Telephone: Fax: Email:
907-883-5151 907-883-5154 su perintendent@agsd. us
11.1 Applicant Point of Contact I Grants Manager
Name: Marion R. MacManus Title: Chief Financial Officer
Mailing Address:
P.O. Box 226
Tok, AK 99780
Telephone: Fax: Email:
907-883-51 51 907-883-5154 superintendent@agsd.us
1.1.1 Applicant Signatory Authority Contact Information
Name: Scott MacManus Title: Superintendent
Mailing Address:
P.O. Box 226
Tok, AK 99780
Telephone: Fax: Email:
907-883-5151 907-883-5154 superi ntendent@agsd. us
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
LeAnn Young (907)883-5151 (907)883-5154 lyoung@agsd.us
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ALASKA
ENERGY
AU TH ORI TY
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
0 An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN # , or
0 An independent power producer in accordance with 3 AAC 1 07.695 (a) ( 1)
CPCN # , or
I D A local government, or
~ A governmental entity (which includes tribal councils and housing authorities)
Add"f 11ona IM". 1mmum R t eqUiremen s
~ 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._(lndicate 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-aQQiication (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.
Walter Northway School Wood Chip Heating System
I 2.2 Project Location
ALASKA
ENERGY
AUTHORITY
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 I 62°58'00"N I Longitude I 141°53'11"W
Walter Northway School is located in the Native Village of Northway (population 1 02) approximately
50 miles southeast ofTok. Northway is an Alaska Native Village located on the east bank of Nabesna
Slough. It is 42 miles from the Canadian border in the Tetlin National Wildlife Refuge. It lies off the
Alaska Highway on a 9-mile spur road, adjacent to the Northway airport. Northway 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.
2.2.2 Community benefiting -Name(s) of the community or communities that will be the
beneficiaries of the project.
The primary beneficiary of the project is the Native Village of Northway and the Alaska Gateway
School District. All buildings to be connected to the proposed heat loop are located in Northway.
There are six (6) other communities that are part of the Alaska Gateway School District that will also
benefit from the reduced operating costs at the Northway Campus; this includes Dot Lake, Eagle,
Tetlin, Tanacross, Mentasta Lake, and Tok. The project will also benefit communities in the region
who have the need for wood harvest to protect their community from wildfire and to develop wood
harvest jobs.
2.3 Project Type
Please check as appropriate.
I 2.3.1 Renewable Resource Type
I D Wind to Heat 181 Biomass or Biofuels
I D Hydro to Heat D Solar Thermal
0 Heat Recovery from Existing Sources D Heat Pumps
D Other (Describe)
I 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
D Reconnaissance D Final Design and Permitting
D Feasibility and Conceptual Design Construction
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed heat project.
ALASKA
ENERGY
AUTHORITY
The Northway School Woodchip Heating Project proposes Phase IV Construction funding in the
amount of $650,000 and will construct a biomass wood chip district heating system to service the
Northway School and Garage. This project will replace about 23,166 gallons of imported heating
fuel which is approximately 90% of the current usage. This system will use approximately 280 tons
(25% moisture) per year of locally harvested 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.
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:
• Modifications to an existing building to house the new woodchip boiler, fuel handling
equipment, and associated heat distribution equipment.
• A fabric 3-sided, woodchip storage barn similar to what the Tok School has been using
successfully for 7 years.
• Underground piping to distribute the heat to the school and garage .
• Piping and controls to integrate the woodchip heating system into the existing fuel oil heating
systems in the school and garage.
• Matching local in-kinds funds will provide grant/project management, construction management
and 280 tons of chips for the 1st year's wood fuel supply.
• Federal in-kind funds will include 40 hours of technical support for the Woody Biomass
Technical Support Team through the USFS valued at $5600.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum ger groject cumulative grant award amount
Round Title of application Application Did you Amount of REF
Submitted #,if known receive a grant awarded
grant? Y/N ($)
None
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SECnON 3 -Project Management, Development, and Operation
I 3.1 Schedule and Milestones
ALASKA
ENERGY
AUTHORITY
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, Ill. 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 End Deliverables # Date Date
1.1 Grant Agreement in Signed Grant
place 8/1/21 9/30/21 Agreement
2.1 Confirmation that all • Confirm boiler sizing Detailed
design and permitting • Determine necessary construction plan
requirements are building design Final permit if
complete modifications and required
update fire marshal
permit if required to
reuse existing building.
• Create a detailed
construction plan 10/1/21 10/30/21
2.2 Contractor/vendor Develop RFP's for major RFP' s and Vendor
selection and award components, select vendors, contracts
and award contracts. 1111/21 1/31122
2.3 Procurement • Procurement and Notification of
Shipping Equipment
12/1121 5/31122 Delivery
3.1 Construction • Modify building to Submittal of
accept boiler and Monthly Progress
associated equipment Reports versus plan
• install boiler and fuel Submittal of
handling equipment detailed
• install piping and commissioning and
integrate to existing training plan.
systems
• Continuously monitor
progress versus plan.
• Develop detailed
commissioning and
O&M training plan. 5/1122 9/30/22
3.2 Commissioning and • Train employees to Submittal ofFinal
Final Acceptance operate and maintain Acceptance Report
the heating system
• Commission boiler,
verifying proper
operation of all
components 10/1122 10/30/22
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4.1 Grant Close-out Prepare and submit final
reports
4.2 Annual Performance Preparation and submittal
Reporting of annual performance
11/1/22 12/31122
ALASKA
ENERGY
AUTHORITY
Submittal of final
project report and
close-out
documentation
Submittal of annual
performance report
reports. 11/1/22 10/30/32
1 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 $650,000
Cash match to be provideda $00
In-kind match to be provideda $33,500
Energy efficiency match provided0 $28,875
Total costs for project phase(s) covered in application (sum of above} $683,500
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 Alaska Gateway School District in the for of in-kind grant and
construction management in the amount of $19,500. AGSD will also provide 1 year of wood chips
at a cost of $8400. The United States Forest Service (USFS) has committed to providing 40 hours
of technical support by the Woody Biomass Technical Support team at a value of $5600.
Energy Efficiency match is detailed in section 8.2.
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 engineering firm that developed the design and cost estimates is experienced with
construction in remote Alaskan communities and has included contingency in the project plans.
However, if there is a shortfall in funding, AGSD has an emergency fund in our faculties
department that we would utilize to fill any shortfall. The project is anticipated to save the school
district more than $65,000 annually which would then be used to repopulate 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} $0
Feasibility and Conceptual Design [Actuai/EstimatedL $0
Final Design and Permitting [Actual/Estimated} $110,000
Construction [Actual/Estimated} $683,500* includes
$8400 for 1st year
fuel supply
Total Project Costs (sum of above) Estimated $793,500
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3.2.4 Funding Subsequent Phases
Estimated
ALASKA
ENERGY
AUTHORITY
$5325
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)
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Grant Application -Heat Form
3.2.3 Budget Forms
ALASKA
ENERGY
AUTHORITY
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, Ill.
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 pro ject. 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
qrants@akenerqyautl1ority.org or by phone at (907) 771-3081.
Phaae1 -l'ita:ammd'&aBma
SsuH'\tf
Matclltmt
Anl~pate:cll GliBJ\t ee F1:1:mda:
RE-Fi!alll'cl C881i1~ MJfeidaJII&ar lirdk ComPJath:m Gmmtfillllllld8 Matclilflilg kmlli1Fedeml TOTALS
Date Flil:mds Gramtr/O'tiher
State
GftlllltsiO*Jiler
(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 & SuQQiies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Grant Application -H eat Form
Pltirase 2-FaaslflbfDIJ ad IC'A'Jit:~ptlll:ai' Deatg n
Sou rce of
Ma tchi ng
Anticipated Gl!l:llltee F:unds:
RE·FIII!ll(/j Cash/I n-Mtla.atemter Task Completion GPU! Fwmds Ma~llll k i nd/Federa l Date ~Witd.B Grant sfOt her
State
Grant sl Ot her
(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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$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
ALASKA
ENERGY
AUTHORITY
TOTALS
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Renewable Energy Fund Round 13
Grant Application -Heat Form
Pflase 3-Fimll' De~ and Permlttln_s;
Adcl!pa.ted Grantee RiE· Flllnd Mltatou OF Taak C:OiilltpleiiOlil SEam Fu·lil& MatclidDg
Date Fan.d.S
(List milestones based on
phase and type of project. $ $ See sections 2. 3 thru 2. 6 of
the RFA)
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
TOTALS $ $
Budaet Categories:
Direct Labor & Benefits $ $
Travel & Per Diem $ $
Equipment $ $
Materials & Supplies $ $
Contractual Services $ $
Construction Services $ $
Other $ $
TOTALS $ $
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Source of
M:atehhllg
Fum:ls:
CaslirJfm;.
klm!li'ifedMrl
GrantelOtl!ler
state
GnaAWOt.IIIQr.
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
ALASKA
ENERGY
AUTHORITY
TOTALS
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Renewable Energy Fund Round 13
Grant Application -Heat Form
Pil!tase 4 -Conatc~urdlon
AmUv:tpatefl GllliJidee RE -.fm\1!11 MJfeateu•-rT• CempJ&.tio.til Gl:amtFtllmda fi1:atdl:T:ng
Daw E111Acf8
(List milestones based on
phase and type of project. $ $ See sections 2. 3 thru 2. 6 of
the RFA)
Grant Agreement in place 9/30/21 $ $1000
Confirmation that all design
and permitting requirements $ $2000
are complete 10/30/21
Contractor/vendor selection $ $2000 and award. 1/31/22
Procurement 5/31/22 $497,172 $
Construction 9/30/22 $127 ,828 $14500
Commissioning and Final $25,000 $3600 Acceptance 10/30/22
Grant Close-out 12/31/22 $ $2000
$ $
*1st year fuel supply -not
included in total capital cost in $ $8400*
8/C calculations
$ $
$ $
$ $
TOTALS $6 50 ,000 $33500
Budget Categories:
Direct Labor & Benefits $ $19500
Travel & Per Diem $ $
Equipment $303,675 $
Materials & Supplies $193,497 $
Contractual Services $25,000 $5600
Construction Services $127,828 $
Other $ $8400
TOTALS $650 ,000 $33500
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S'01:1'1.'C8 of
r&tclltlmg
F11utds:
CDNih·
ldm·dtf=eduaJ
GramtalOlliler
Stiate
Gl; er
Local In-kind
Federal In-
kind
Local In-kind
Local In-kind
Federal In-
kind
Local In-kind
Local In-kind
$
$
$
$
$
$
$
$
$
$
$
$
ALASKA
ENERGY
AUTHOR ITY
TOTALS
$683 ,500*
$
$
$
$
$
$
$
$
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Grant Application -H eat Form
3.2.4 Cost Justification
ALASKA
ENERGY
AUTHORITY
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 Cushing Terrell (CT)
formerly CTA Architects Engineers, from Billings, Montana. This is the same engineering firm that
completed the design for the Tok School and Mentasta district heating projects. They are
experienced with biomass projects and construction in rural Alaska. Cost savings modifications will
be made to the design by utilizing an existing building to house the boiler. There will be a few other
minor mechanical modifications based on experience of the project team and recent key learning
from the projects in Tok, Mentasta, Hydaburg, Anvik, and Huslia.
I 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?
Progress will be measured based on a project charter with a timeline, milestones, and a
responsibility matrix to 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 Northway project manager will
provide monthly progress reports to AGSD leadership 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 successfully construction of this project.
I 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 district policy, when a project is funded, an account and
object account code is created to track all materials and time related to that project. This is broken
out as required under the Department of Education's Chart of Accounts, allowing matching and
grant funds to be properly accounted for. 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 between $10,000 and $20,000 the district will seek
informal quotes and a purchase over $20,000 requires formal quotes. We always encourage local
or State purchases. When the formal bids are reviewed and selected, it goes to our Regional
School Board for approval. Once bids are approved we initiate contracts and make equipment
purchases, within the project scope.
The Grants Manager initiates all purchases; the business office processes purchase requests, with
final approval being made by the Superintendent. The Grants Manager lets the business office
know when items are received, and the payments are processed. Depending on how the grant is
set up, there will be monthly or quarterly reporting. The grants manager will file appropriate
reporting paperwork and the Chief Financial Officer will ensure that the financial reports are
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ALASKA
ENERGY
AUTHORITY
submitted in a timely manner. When financial reports are reported there is always a second
person to double check the numbers ensuring accuracy of the reports.
Our procedures for Managing crew and labor: We have managers in our Maintenance
department and all of our schools that oversee employees. We follow both; classified and certified
negotiated agreements and we have a board policy on temporary hires. Alaska Gateway pays
twice a month to our classified/ temporary employees and monthly for our certified staff.
Timesheets for classified are turned in semimonthly, paid through the business office. Time sheets
are checked for clarity and double checked by a second staff member for accuracy.
I 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.
Anthony Lee will act as Owner's Representative and Project Manager for Alaska Gateway School
District. Mr. Lee is the current Biomass complex manager and lead operator for the Tok School
wood chip CHP plant and is one of Alaska's most experienced biomass system operators. He has
been in his current role for 6 years. Mr. Lee currently provides technical support to the Native
Village of Mentasta on their small-scale chip heating system and has been instrumental in training
their operators on the proper operation and maintenance of their Portage and Main boiler. Mr. Lee
has made design modifications to the Tok and Mentasta plants that have significantly improved the
boiler efficiencies and overall system performance and life. Tony also has 20+ years of experience
in construction and project management.
He will provide construction management of the Northway boiler installation and will lead the
commissioning and training of the new operators.
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.
Robbie MacManus, the AGSD Chief Financial Officer, will perform the accounting for the project.
MacManus has a BA in Business Management with an emphasis in Accounting and has 21 years'
experience with the district accounting systems, the last 12 years of which have been as the CFO.
She has managed the accounting side of multiple successful state and federal grants, including the
TOK Biomass Project, funded by AEA.
J 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;
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ALASKA
ENERGY
AUTHOR ITY
• 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 the following members and the key duties/contributions they will
provide for the project:
Scott MacManus is the AGSD Superintendent. Scott will provide overall leadership to the team and
will be responsible for signing the grant agreement and certifying the project close-out. Mr.
MacManus will also provide technical support for the final design revisions and the RFP
development. He led the development of the Tok School boiler and CHP system and has more
than 30 years' experience with construction management.
Wade Boney, AGSD Director of Maintenance will be responsible for the O&M specifications in the
boiler RFP and will be actively involved in the development of the O&M manual for the wood
heating system. Mr. Boney will also oversee with quality control of the construction.
Anthony Lee is currently the Tok Biomass Project Manager. As project manager, Mr. Lee will be
the primary technical point of contact and oversee all 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 will lead the development of the boiler RFP. Tony
has managed the Tok and Mentasta biomass systems for more than 6 years and has more than 20
years of experience in construction and project management.
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 Tok area. Ms. Morris has a PhD in Forest Biomaterials.
Karen Petersen is the Facilitator for the Alaska Wood Energy Development Task Group and will
provide input into the equipment RFP and the logistics and management of the wood chips delivery
and handling. She has been involved in almost every biomass project developed in the state of
Alaska since the early 2000's and brings a wealth of practical knowledge to the project team.
Devany Plentovich is a mechanical engineering on contract to the USFS to provide technical and
project development support for biomass projects in Alaska. Her involvement will be provided as in-
kind match from the USFS Wood Energy Technical Support Team. She will review any design
modifications, provide technical input for the development of the RFP, help monitor the quality of
the installation, and provide technical support during the commissioning and training of the
operators. She has over 30 years of experience in biomass energy systems, project management,
and the development of operations and maintenance systems.
4.2 Local Workforce
Describe how the p ro ject will use local labor or train a local labor workforce.
AGSD plans to use local labor through force account hiring to complete a significant portion of the
construction that does not require specialty skills. AGSD will also use their own facilities employees
for construction management and some of the specialty work. Because the construction of these
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ALASKA
ENERGY
AUTHORITY
systems involves basic pipe fitting, electrician, and labors duties, biomass projects are an excellent
opportunity to increase the local capacity for construction and maintenance activities. AGSD is
committed to using local labor on this project.
SECTION 5 -TECHNICAL FEASIBILITY
I 5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extenUamount 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 Upper Tanana 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 incredible. 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 Upper Tanana Valley. This project will require
approximately 280 tons of wood chips (25% moisture content, 13.2 MMBTU/ton). In 2019, AGSD
purchased their own 80-acre timber sale from the State of Alaska Division of Forestry in order to
significantly reduce the cost of their woodchip supply for their operating systems. It is the intent of
the AGSD to process their own woodchips for the Northway School from this timber sale at a
delivered cost of $30/ton. They are currently processing chips for the Tok school at a $25/ton
delivered cost.
Additionally, there are other major supplies of biomass in the region:
Trees are regularly removed from the hazardous fuels reduction projects in the Upper Tanana
Valley. A Community Wildfire Protection Plan (CWPP) was signed off by the community and State
of Alaska agencies in 2008. 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 39,000 acres in Tok 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 Upper Tanana
Region.
Tok's two (2) small, longtime sawmill businesses have waste products from their milling
operations. This includes tons of sawdust, planner shavings, and slabs. Land clearing operations
for private land development, highway, road construction also produce fuel for Alaska Gateway
School District's biomass systems.
The Upper Tanana Valley's biomass inventory dwarfs the AGSD's demand. The most recent Tok
area forest inventory, published by Alaska Department of Forestry, confirms 90,000 acres of pole
timber and over 16.4 million tons of biomass (greater than or equal to 2").
A detailed resources assessment was completed for the area in 2011 and is included in the
appendix. Hanson, "Biomass Supply Analysis for the Tok Area." Alaska Department of Forestry.
March 2011.
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5.1.2 Alternatives to Proposed Energy Resource
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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 Northway area are
limited 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,
Northway paid an average of $.59 per kWh according to the 2019 PCE report. 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 $65,000 that would normally be
exported out of the local economy for the purchase of heating fuel.
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 Marshall I Division of Fire and Life Safety .
Anticipated Permitting Timeline:
The Construction Documents have been approved to the Division of Fire and Life Safety. Any cost
savings modifications will require final approval through 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 Northway
Biomass Plant and developed an understanding of the process and required communication .
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.
I AGSD owns all of the facilities and the land where the biomass heating system will be constructed.
I 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.
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Because AGSD has been managing the operation of wood chip heating systems for more than 10
years, the risks for the proposed system at the Northway School are very 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. Because AGSD has been
producing their own chips for the Tok and Mentasta Schools since 2009, they are experienced
in the challenges and have designed the boiler system and their chip processing procedures to
minimize fuel quality fluctuations.
• Risk of construction delays due to Covid-19. The 2020 pandemic has created a new set of
problems for construction projects in remote Alaska. So far, Northway has managed to avoid
infections in their community, but the risk is still very present. Most rural communities have
limited travel to their villages to prevent the spread of the virus. This project could be delayed
due to travel restrictions within the community. AGSD will continue to have regular
communications with the Northway community leadership to schedule construction activities.
• Availability of a biomass resource. AGSD works closely with the State of Alaska Division of
Forestry for the wood supply for its biomass heating systems. Significant amounts of wood
harvest take place in the region for wildfire mitigation, providing a steady stream of fuel to the
biomass systems. Two sawmills operate in the region and provide waste wood to the boilers in
Tok and Mentasta. AGSD has purchased their own timber sale of 80 acres that will be used for
the Northway School fuel supply. 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. Current AGSD employees are already trained on biomass system
operations and Anthony Lee will provide additional training for Northway specific boiler needs.
The future Northway operator will be part of the construction crew and will have detailed
operations and maintenance training during the commissioning of the system.
• Construction delays, which include inclement weather or forest fire. AGSD has reduced
this risk by working with experienced professionals who have been active in construction
projects in the region, and by planning a project development timeline that takes account of the
short construction seasons and weather challenges that can impact construction in Northway.
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 Northway 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
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area of this project and very limited permafrost in the areas surrounding Northway. The major
habitat issue is the natural cycle of large wildfires in the Upper Tanana Valley. 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 . The Native
Village of Northway 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 Northway School.
The principal land development constraint is the short construction season in the upper Tanana
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 .
Visual, aesthetics impacts: Visual aesthetics impacts are minimal, and the boiler building will be
designed to blend with the existing school structures.
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 Exist ing System" section of the appropriate Best
Practice Checklist for additional guidance .
The Northway School currently utilizes oil-fired hydronic boilers and space heat distribution
systems (based board radiators and heat loops) to heat the school and garage. The school system
is a conventional oil-fired boiler system that is temperature controlled from thermostats. The garage
system is a forced air furnace. The boilers and furnace's fuel usage are summarized in section
5.4.2.2. These systems are oversized, experience frequent short cycling, and have low efficiencies
(estimated conservatively at 75%) but are well maintained. The boilers and furnace 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 applicable to your project)
Unit Resource/ Design Make Model
# Fuel type capacity
(kW)
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
5.4.2.2 Existing Thermal Generation Units
Generation Resource/ Design Make Model
unit Fuel type capacity
(MMBtu/hr)
#1 Heating 1517 MBH Burnham V1108
oil
#2 Heating 1517MBH Burnham V1108
oil
#3 Heating 105 MBH Burnham Forced
Oil Air
Furnace
Minimum
design
load
Average
annual
efficiency
75%
75%
75%
Year Hours of
Installed Operation
Year Hours
Installed
-1990
-1990
-1994
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
Incorporated into existing facilities job, mechanic
performs annual preventative maintenance and repairs
equipment failures.
Estimated at $200/year for parts
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 Generation Generation Fuel Fuel Peak Minimum
(Type 1) (Type 2) (Type 3) Consumption Consumption Load Load
(kWh) (kWh) (kWh) (Diesel-[Other]
Gallons)
January
February
March
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April
May
June
July
August
September
October
November
December
Total
5.4.2.5 Average Annual Heating Fuel Consumption (Existing System)
Month Heating Electricity Propane Coal Wood
oil (kWh) (Gallons) (Tons) (Cords,
(Gallons) green tons,
dry tons)
January 5700
February 3800
March 3200
April 1350
May 500
June 50
July 50
August 50
September 400
October 2850
November 3040
December 4750
Total 25740
5.4.3 Future Trends
ALASKA
ENERGY
AUTHORITY
Other
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 school and garage. Average fuel usage is 25,740 gallons per year averaged over the last 5
years, and the chip boilers will displace 23,166 gallons.
Because the population of Northway 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
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• 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
g uidance.
AGSD is proposing to construct a small-scale woodchip heating system to heat the school and
garage at the Walter Northway School. The engineering design was completed by CT Architects
Engineers with a grant from the AEA biomass program with funding from the USFS. The proposed
system consists of a woodchip boiler located in a dedicated metal building. Wood will be loaded into
a "rotag", a storage bin with a rotating metal spring to feed chips into a screw conveyor. This screw
conveyors transports chip 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 180° and transfer it to a stratified thermal
storage tank. 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.
The diagram below illustrates the piping and controls for the biomass boiler to heat exchanger.
T
---~e:~.-
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 at the Northway School is in good condition and will not require any
upgrades. The existing oil boilers will be left in place to serve as emergency back-ups and as peaking
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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.
~~~ ·~ [f;~~ ~ .. !!!) . ~*.~ 11 ·.~£~:-'~:: 1-t-~~o ·· ~~ .;+ .~
!1!'1>; ... P"'-S!l
!!!!!l!!! .__..,_ .!!!.,~~Ca.~~ ~ -IiJ;j--.. -···~~~ u
t'ii)P,.,.._IIQN'.O. ~ .. ,__
flli&T!lloti<A t•.:ij,'l'i)il)lllll ... ~,..,o.w.:ll
The boiler specified by CT is a 680,000 Btu/Hr Portage and Main Model 8850. This is an atmospheric
boiler very similar to the system that has been successfully operating in Mentasta. This boiler was
sized by CT to support 90% of the heating load of the Northway School and associated buildings.
The boiler sizing will be confirmed with the latest fuel usages before the procurement takes place.
While the design specified a Portage and Main boiler, the project team will also investigate new
small-scale chip boilers on the market because this technology is rapidly changing with new
experience from Europe.
The boiler will be housed in an existing building formerly used for storage on the Northway campus.
The building has a concrete floor sufficient for the boiler loading. This is a change from the CT
build ing desig n and will significantly reduce the cost of the project from the CT estimate .
5.4.4.1 Proposed Thermal Generation Units
Generation Resource/ Design Make Model Expected Expected
unit Fuel type capacity Average life
(MMBtu/hr) annual
efficiency
Wood chip Wood .650 Portage 8850 65% (very 20 years
boiler Chips and Main conservative)
or equal
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.
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A thermal storage tank separates with wood boiler from the actual building heating demand. A
simple temperature setpoint controller with a high/low setpoint will control the operation of the
wood chip boiler to the thermal storage. As the thermal storage tank demands heat, wood chips
will be automatically conveyed to the boiler where combustion is automatically started. Hot water is
pumped to the thermal storage tank. (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 thermal storage tank through the district
heating loop. 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 Page 21 of the final design documentation.
5.4.5.1 Annual Heating Fuel Consum~tion (Pro~osed S~stem}
Month Heating Electricity Propane Coal Wood Other
oil (Gallons) (Tons) (Cords,
(Gallons) green tons,
dry tons)
January 62
February 41
March 35
April 15
May 6
June 0
July 0
August 0
September 5
October 31
November 33
December 52
Total 280
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 Mentasta and Teslin,
YK experience, includes replacement of typical parts
(pumps, etc.) -approximately . 75% of the initial
equipment costs.
iii. Replacement schedule and cost for Included in the above estimate .
proposed units
iv. Other new costs (insurance, taxes, etc.)
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5.4.7 Fuel Costs
ALASKA
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AUTHORITY
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel Electricity Propane Coal Wood Other
(Gallons) (Gallons) (Tons)
Unit cost $3.30 $30/ton
($)
Annual 2574 280
Units
Total $8494 $8400
Annual
cost($)
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.
Because the Northway School wood chip heating system will only be supplying heat to buildings
owned by its school district, there is no need for revenue grade Btu meters. To meet the metering
requirements for this grant, one Btu meter 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 Btu meter is estimated to cost $5325. A quote is included in the
supplementary documents.
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the RFA
The following documentation will be collected on a monthly basis by our finance department to
understand the impact of the wood heating system:
• Tonnage of wood chips and average moisture
• Cost of the delivered wood chips
• Btu's produced
• Maintenance and Material Costs
• Additional Labor hours
This information will be reported annually to AEA is the required format.
SECTION 6-ECONOMIC FEASIBILITY AND BENEFITS
I 6.1 Economic Feasibility
I 6.1.1 Direct Economic Benefits
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
Anticipated Fuel Displaced for Heat 23,166 463,320
(gallons)
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I Total Fuel displaced (gallons) 123 ,166
Anticipated Diesel Fuel Displaced for Power
Generation ($)
Anticipated Fuel Displaced for Heat ($) $76,54 7 (B/C model)
Anticipated Power Generation O&M Cost
Savings (Increases)
Anticipated Thermal Generation O&M Cost ($11 ,400) (B/C model)
Savings (Increases)
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $65,147
6.1.2 Economic Benefit
1463,320
ALASKA
EN ERGY
AUTHORITY
$1,270,948 (B/C model)
($164,663) (B/C model)
$1,106,285
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 .a ken ergyautho ri ty.o rg/what-we-do/grants-
lo an s/renewable-energy-fund -ref-grants/2020-ref-app lication . 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 displace the equivalent of 23,166 gallons of fuel oil #1. The average
price in 2019 was $3.15/gallon. Over the 20-year lifetime of the project, the project will displace
463,320 gallons of fuel oil, with a current fuel value of more than $1.459 million.
This system will burn 280 tons of woodchips annually at a cost of $30 per ton. The total lifetime
project savings including purchased wood fuel will be $1 ,270,948.
In the first year of operation, the wood chip heating system is expected to save the school more than
$65,000 that will be used for other educational purposes in the school such as hiring additional staff
or installing a greenhouse at the Northway School.
The B/C ratio of this project is calculated at 1.49. The assumptions used in the analysis are:
• Wood heating value -13,200,000 mmBtu/ton-25% moisture. Actual chip moisture in the Upper
Tanana Valley is averaging 20% moisture.
• Oil boiler efficiency-75% due to grossly oversized boilers ad short cycling.
• Chip boiler efficiency -65% -source -CT Design assumptions. This is a very conservative
estimate. Vendor documentation and USFS guidelines estimate woodchip efficiencies closer to
75%.
• Annual Chip usage -280 tons
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• Annual O&M and replacement costs for the wood chip boiler-.75% of equipment cost or $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 -$200 -existing systems will
remain in service so reduction in cost will be minimal.
• Price of wood chips at 20% moisture -$30/ton -cost for processing and delivery for AGSD.
AGSD has purchased a timber sale and is harvesting and processing their own chips. Economic
analysis of the mechanized harvest, processing and delivery has ranged from $25 to $30 per
ton. AGSD is able to keep the cost of the chips so low because they own a chipper, processor,
and a semi with a walking floor trailer, and their crew is experienced in the processing of wood
chips.
• 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.
• 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 the AGSD the option to run the lowest
cost fuel in their systems. If oil drop 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 the AGSD.
• Alaska Schools are required to maintain an enrollment of 10 students to remain open.
Northway School currently enrolls 54 students. If the enrollment were to drop below 10
students, the school would be closed, and the woodchip heating system would be mothballed.
The likelihood of this happening is low due to the large number of students and the stability of
the population in Northway.
• Deferred or inadequate facility maintenance can cause significant operational issues with a
woodchip heating system. However, AGSD has shown since 201 0 that they are capable and
willing to operate and maintain a significantly larger wood chip CHP system at the Tok School
and a small-scale wood chip heating system in Mentasta. AGSD knows what is required to
maintain this proposed system and we are very excited to commission a new wood boiler in
Northway.
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
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Renewable energy resource availabili!y_lkWh 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
ALASKA
ENERGY
AUTHORITY
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. Especially now as we are seeing historically low
heating fuels costs, 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 the School District will spend fewer dollars on
facilities and utilities, and more dollars in the classroom, teaching children. From the savings
realized from the addition of the Tok Biomass Plant, the music was restarted and additional
staffing was hired Savings during the first year of this project will more than $65,000.
• With the availability of low-cost heat, AGSD plans to expand the greenhouse program in the
region. AGSD already is operating a large greenhouse at the Tok School that provides
vegetables to all of the schools in the district.
• Improving the viability of wood energy in the Upper Tanana 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 Upper Tanana. 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 from the two local
sawmills and value-added use for standing dead and beetle kill trees.
• The project provides "proof of concept" and a demonstration of a new type of inexpensive fuel
chip feed systems -the "rotag". This system is used extensively in Europe and on the east cost
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. The
AGSD is a participant on all of the Biomass Decision Maker Tours through the AWEDTG and
adding this new technology to the school in Northway will provide opportunities for many
potential biomass owners to understand this new chip feed technology.
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• Roads are created when wood is harvested in the Upper Tanana 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.
• The Upper Tanana Valley has the highest density of wood heating systems in Alaska and the
most diverse experience in all of the different wood heating technologies. We are considering
the opportunity to take the next steps in continuing to build a biomass industry in the region by
starting a development and construction company for biomass systems. This company has the
potential to employ local trades, biomass technical experts, and project managers to support
biomass development throughout Alaska. It will fill an existing void of biomass-experienced
construction com pa nies.
SEC111DIII7 -S!UJSTAI1N!ABI!LFN
D.es.e~rb(:l ~:ur pla~ fo.r o:~.er.a~ihg t~e m(tl>l'll!lJieltael ~'F®jeet so tilifatt ~~ Wffllle sustamablei~rrou§1>lo.l:!l,t ~s
soon ®'rt\tl c l11f$.
At .a J!11111nil!lll'l!llir.l fer COfliS~liU!I·0'Ui Qm p110~e®ts. a B:l!JSjl!ilass and openatiens !)lam· strot:Jid be attactqed, and
~l&l.ea:p.J.9!In~mm sho.IUJfd ~~~clfib.e llll.aw i~ WUl! be ~~m•~:enmd. 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
• The Tok School wood chip heating started operation in 201 0 and has successfully operated
since the commissioning. In 2013, the boiler was converted to steam production and a steam
turbine was added to produce electricity. In 2018 a more efficient steam engine was added to
the system producing about 300,000 kWh annually. The same employees that operate and
maintain the Tok School project will be leading in the Northway construction and operation.
• The Mentasta woodchip heating system started operation in 2014. Although they have
struggled with initial design issues, Anthony Lee of the AGSD facilities team made changes to
the system to dramatically improve operation and run-time. The community is so satisfied with
the existing system, the Native Village of Mentasta is installing a wood chip system in the clinic
and tribal offices. Their system has been operated by Bob Gunn for 4 years. Mr. Gunn was
trained by Mr. Lee and is proficient at operating the boiler and performing the preventative and
annual maintenance requirements.
• The Northway School woodchip heating system will be managed by Mr. Lee with the
assistance of one of his mechanical staff.
• Training for the Northway 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 Mr. Lee and technical consultants. Mr. Lee and other
operators from the AGSD will be available for troubleshooting any system issues.
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• AGSD has a comprehensive preventative maintenance software package that tracks the timing
of all maintenance tasks, along with parts procurement and labor requirements. All of the
components of the new boiler system will be added to the maintenance system to make sure
that preventative maintenance is completed on the required timeline. When work is required,
work orders are printed and assigned to maintenance staff. When completed, the results of the
inspection or maintenance tasks are captured in the software package or future reference and
planning. When replacement parts are used, the maintenance systems initiates the purchase of
additional parts.
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 the Alaska Gateway School District will be providing heat to its own facility, there are no
rate setting requirements or revenue considerations in this project. The school district will use their
existing accounting system and procedures to account for all operational and capital costs. They
have successfully managed the costs of the Tok School Wood Heating System since 2010 and are
able to provide accounting details upon request.
In accordance with district policy and our accounting procedures, an account and object account
code are created to track all materials and time related to specific tasks and projects. This is
broken out as required under the Department of Education's Chart of Accounts, allowing matching
and grant funds to be properly accounted for. Operational costs are tracked with the same system
and will be compared to previous years' costs to understand the actual cost savings impact of the
project. If heating fuel prices drop below the cost of heat from wood chips, the school has the
option to use the fuel oil boilers that will remain operational as back-up systems.
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)
I N/A-all heat will be used by the system owner-AGSD
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following :
• Identification of potential power buyer(s)/customer(s)
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• 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
I 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 Northway School Wood chip Heating Project has followed the traditional
project development process. A prefeasibility study through the AWEDTG were conducted in
Northway on the school and on tribal buildings. The prefeasibility study indicated that the school
had a large opportunity for biomass heating projects due to their high cost of heating fuel and large
annual heating fuel usage. The prefeasibility study is included in the supplemental documents.
In 2018, AGSD applied to AEA and received a grant to complete the final design for this proposed
project. AGSD hired CT for their extensive experience designing wood heating system in rural
Alaska, and the design was completed in December of 2019. Members of the AWEDTG were
involved in the development of the conceptual design and the design reviews. Final Fire Marshal
permitting has been received for this design. Any modifications to the design of the building will be
reviewed with the Fire Marshal to finalize permitting if required.
Resource assessments have been completed by State of Alaska Division of Forestry and AGSD
has purchased their own timber sale to provide fuel for this project. There are existing procedures
in place for the processing and storage of woodchips, and AGSD employees are experts in the
operation and maintenance of wood chip systems.
This project is proposing the final step in the development of this project-construction and
commissioning. Site control is not a concern because AGSD owns the school property. Project
procurement will take place if construction funding is awarded, and all AGSD procurement
procedures will be followed. The RFP for the boiler system will be developed with input from our
experienced biomass partners at the USFS and the AWEDTG.
8.2 Demand-or Supply-5ide 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
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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
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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 at the Northway
School. In 2017, 4" of foam insulation was added to the entire floor structure of the building. Sewer
piping was insulated, and LED lights were installed in the gym. The total cost for this work was
$28,875. Documentation is included in the supplemental materials showing the school
maintenance budget and the Board approval for the expenditures. Additionally, new controls were
added to the air handling system and soft-start motors were added to the largest loads in the
school to avoid demand charges from the local utility. Due to the quarantine, the accounting
department was unable to pull the actual receipts. The foam insulation and air handling controls
have reduced the incidents of freezing in the building and reduced the heat loss of the building
envelop.
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
Biomass has become a way of life in the Upper Tanana Valley, and these is extensive support for
this project from the community.
Resolution of support and commitment from:
• AGSD Board
Letters of support are included from:
• State of Alaska Division of Forestry-Tok Office
• Alaska Wood Energy Development Task Group
• United State Forest Service -Priscilla Morris-includes match commitment
• Logging and Milling
• Tanana Chiefs Conference
• Plenergy Solutions
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.
The development of this project has been supported by AEA and the USFS with a $110,000 grant
for the design and permitting of the Northway School woodchip heating system. This project was
awarded in August 2018 and was completed in December 2019. The project met all of the
reporting requirements and project deadlines.
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The AGSD received a grant for the Tok School Wood Heating System in Round 1 of AEA's
Renewable Energy Fund. This project was completed within budget and all reporting requirements
have been met, including 5 years of performance reporting.
The AGSD also worked very close with the Mentasta Traditional Village when they received a
Round 6 Renewable Energy Fund grant for the Wood Chip Heating System in Mentasta. Although
we were not the grantee , our staff was involved in the design , construction, and operation of the
system.
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.
Feasibility Stage -Upper Tanana Valley Resource Assessment
• Feasibility study
Design Phase
• CTA 65% design narrative
• CTA Design Documentation
• CT A Specifications
• Detailed Construction Cost Estimate
Other
• 8/C ratio analysis
• Latest Heating Fuel Invoice
• Northway Historical Fuel Usage
• Energy Efficiency Documentation
• Quote for BTU meter
SECTION 12-LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
Resumes:
Scott MacManus
Marion MacManus
Anthony Lee
Karen Petersen
Priscila Morris
Devany Plentovich
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I SECTION 13-AUTHORIZED SIGNERS FORM
Community/Grantee Alaska Gateway School District
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Regular Election is held: Every 3 years I Date: First Week in October
I Authorized Grant Signer(s):
Printed Name
I authorize the above person(s) to sign Grant Documents:
Must be authorized b the hi hest rankin or anization/communi
Printed Name Title Term
Scott MacManus Superintendent N/A
I Grantee Contact Information:
Mailing Address: P.O. Box 226
Phone Number: 907-883-5151
Fax Number: 907-883-5154
Email Address: superintendent@agsd.us
Federal Tax ID #: 92-0058369
Please submit an updated form whenever there is a change to the above information.
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SECTION 14-ADOttlONM. OOOUMENrrAllON AINO CERTtFICATto!N
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SUBMn' THE .FOlLOWIING D.OCUMeNTS WITH YOUR APPUCA TION:
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
Signature
Title Superintendent, Alaska Gateway School District
Date 09/25/2020
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