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HomeMy WebLinkAboutFinal AEA Application - PGVCTable of Contents Alaska Energy Authority AEA-15003-RE Fund Renewable Energy Fund Round VIII Port Graham Village Council Submittal: “Renewable Energy Development Project” September 22, 2014 Page # Table of Contents ...............................................................................................................1 Grant Application ..............................................................................................................2 Signed Certification Page ......................................................................................47 Grant Authorized Signers ......................................................................................48 Resumes – submitted separately as prescribed in the RFA Port Graham Staff Chugachmiut staff Consultants Letters of support/commitment Port Graham Village Council Resolution 14-19 ....................................................49 Port Graham Corporation .......................................................................................51 Chugachmiut ..........................................................................................................52 Attachments Biomass Construction Documents .....................................................................................54 Biomass Report – PGVC Chena Power ...........................................................................142 EERC Feasibility Study ...................................................................................................202 Creating our Future – IRMP Phase 2 ...............................................................................372 PGVC Procurement Policy ..............................................................................................445 1 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII 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 RFA section 1.5). An electronic version of the Request for Applications (RFA) and both application forms are available online at: www.akenergyauthority.org/REFund8.html.  If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases 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 budget for each phase of the project.  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 ACC 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.  If you have additional information or reports you would like the Authority 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.  In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. 2 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   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 the Authority. 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 the Authority that the information will be kept confidential. If the Authority 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.    3 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Port Graham Village Council Type of Entity: Federally Recognized Tribe Fiscal Year End: September 30 Tax ID # Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: P.O. Box 5510 63795 Graham Road, Unit 1 Port Graham, Alaska 99603-5510 Port Graham, Alaska 99603 Telephone: Fax: Email: 907-284-2227 907-284-2222 pnormanvc@hotmail.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Patrick Norman First Chief Mailing Address: 4 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  P.O. Box 5510 Port Graham, Alaska 99603 Telephone: Fax: Email: 907-284-2227 907-284-2222 pnormanvc@hotmail.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Francis Norman 907-284-2227 907-284-2222 Francis907@hotmail.com Charles Sink 907-562-4155 907-563-2891 Charlie@chugachmiut.org 5 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☐ A local government, or ☒ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. ☒ 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 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 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 http://www.akenergyauthority.org/vREFund8.html. (Any exceptions should be clearly noted and submitted with the application.) (Indicate 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)    6 Renewable Energy Fund Round VIII   Grant Application – Heat Projects    SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Port Graham Community Building Biomass Heat Distribution Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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 907-771-3031. Port Graham, Alaska 59.348592. -151.829739 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Port Graham, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 7 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  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 8 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. Port Graham Village Council (Port Graham) has decided to install a hydronic system with district heating loop. Hydronic system will utilize a large boiler that will burn cordwood to heat water for distribution through insulated piping. Port Graham intends to install a WHS 3200 GARN boiler for a heating plant. Plant will be used to heat four major community buildings with an option to provide heat to three additional buildings (at those owners expense for hook-up)1. Heat will be distributed through insulated piping using a heat loop system. Piping will connect with existing in-building piping through heat exchangers. The wood-fired biomass system is designed to use locally sourced cordwood from road accessible lands in proximity to the community. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) Heat project is estimated to displace approximately 5,365 gallons of diesel fuel per year and save approximately $15,112.00 per year for the community. There will be 3-5 part-time jobs created for woody biomass delivery. Additional work will be created for a current part-time Tribal service worker to feed and maintain the GARN Boiler heat system. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Port Graham Village Council is requesting $341,465 in construction, Project Management and start-up funds to complete this project. We have attached a detailed budget to demonstrate milestones and budgetary needs. Between PGVC and our partner Chugachmiut, we are pledging a minimum of $79,300 or approximately 20% of the total project costs.                                                              1 One of these additional buildings, the North Pacific Rim Housing Authority “Modernization Shop” is included in the  Richmond Engineering designs, attached. The building square footage is approximately 960 square foot and the  owners only wish to heat the building to not less than 40 degrees Fahrenheit.    9 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  2.7 COST AND BENEFIT SUMARY Summarize the grant request and the project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 341,465 2.7.2 Cash match to be provided $ 0.00 2.7.3 In-kind match to be provided $ 79,300 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 420,765 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 2.7.7 Biomass or Biofuel Inventory on hand $ 0 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $ 0 10 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.9 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 236,601.56 2.7.10 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 0 2.7.11 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ 377,800.00 [annual savings $15,112.00] 2.7.12 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ 0 11 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant anticipates project management assistance from AEA or another government entity, state that in this section. First Chief Patrick Norman is the President of Paluwik Enterprises, LLC, Alaska Business License #957305, and will serve as the Project Superintendent. Paluwik Enterprises, LLC is a subsidiary of the Native Village of Port Graham DBA Port Graham Tribal Council (PGVC) hereinafter referred to as Council. Chief Norman has vast experience in Project Management for projects undertaken on behalf of the Council. His resume has been attached to this application. Chief Norman has assembled a highly qualified team to assist in accounting, procurement, reporting and day to day project management. The team consists of Francis Norman, PGVC Tribal Administrator; Vivian Malchoff, Finance Manager for PGVC; Yvonne Krenzelak, CPA for NPRHABS; Charles Sink, Chugachmiut Enterprise and Trust Division Director, and Nathan Lojewski, Chugachmiut Forester. 12 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in 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 of your proposed project. Please fill out form provided below.  You may add additional rows as needed. Milestones Tasks Start Date End Date Finalize construction drawings  and specifications  Contact A/E to update information related to  unknown conditions and changes to codes. 7/1/2015 8/1/2015  Construction Project  Management ‐ Paluwik, LLC  Prepare construction bid docs 8/1/2015 9/30/2015 Solicit for contractors 10/15/2015 11/15/2015 Review bids 11/15/2015 11/30/2015 Award contract   12/15/2015 Project Management 7/1/2015 6/30/2017 Mobilization Contractor mobilizes equipment and materials 4/1/2016 5/15/2016 Project construction begins  Renovation to Pump House –Boiler House 5/15/2016 6/30/2016 Excavation for arctic piping 5/30/2016 8/30/2016 Retrofitting existing boilers and installing heat  exchangers, appurtenances and BTU Meters 6/30/2016 8/30/2016       Train PGVC staff Provide training to PGVC staff on boiler operation 7/15/2016 9/30/2016 Test system Conduct pressure tests on system 9/15/2016 9/30/2016 Final inspection and acceptance Final inspection and acceptance 10/15/2016 10/15/2016        Begin Stockpiling biomass Map areas for cutting 7/1/2015 7/15/2015 13 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Hire Biomass fuel source crews 7/15/2015 7/31/2015 Begin cutting, hauling and storing 8/1/2015 Annual  1st year O&M 10/15/2016 6/30/2017 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Paluwik Enterprises, LLC; Paluwik Enterprises is a majority owned subsidiary of Paluwik, LLC owned by Port Graham Village Council. Company will be the preferred contractor for the project. Overhead personnel includes President Patrick Norman who will serve as project superintendent. His resume is attached. Port Graham Village Council will be subcontracted to provide Human Resources and overseen by its Tribal Administrator. Accounting for the project will be through a subcontract with NPRHA. List local equipment to be used; Backhoe, Dozer, Dump Truck, Forklift, Suburban, Pickup Truck, Trailer, Road Grader, and Front-end Loader. Qualified construction people: Patrick Norman, President Paluwik Enterprises, LLC. Richmond Engineering Richmond Engineering has agreed to review and complete final drawings for construction. Chugachmiut Technical Assistance Enterprise and Trust Division Director Charles Sink and Forester Nathan Lojewski will provide grant  technical assistance. Resumes are attached.   Partnerships Port Graham Village Council will work with Port Graham Village Corporation. Work with the Corporation includes the district heat loop connection to their office building and renting of some of their on-site construction equipment. The Council will also work with NPRHA for project accounting. Describe any existing contracts and selection process you may use for major equipment purchases or contracts. Tribal procedure for contracts or purchases, please include.  14 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Equipment purchase—anticipated is the acquisition of a WHS 3200 GARN Boiler.  manufacturer info.  Resumes and references [resumes sent electronically per AEA instructions]  Chief Patrick Norman, Tribal administrator Francis Norman, and Finance Manager Vivian Malchoff  Accounting firm NPRHA’s Accounting Consultant Yvonne Krenzelak  Richmond Engineering’s George and Steve Richmond  Chugachmiut’s resumes Enterprise and Trust Division Director Charles Sink and Forester Nathan Lojewski. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. Project Management Project management will be through Paluwik Enterprises, LLC. It’s president is Chief Norman and he is a highly experienced project manager for Port Graham community projects. He will act as the daily operations project manager and have overall project supervision responsibility. The president will keep a daily written report of construction activities. On a monthly basis, a written report for construction activities will be reported to Alaska Energy Authority. Project manager will be responsible for site-visits, inspections, and project and safety meetings. Administration and reporting Tribal administrator will guide the day-to-day recording of financial transactions and human resource duties. Financial reports will be provided on a monthly basis to AEA during the construction period. Human resource reports will report the number of FTE equivalents worked each month during the course of project. Administration will utilize various communication tools available in the community to keep AEA informed such as telephone, email, facsimile, and written reports sent by mail. Alternative contact person Tribal Administrator Francis Norman will be the alternative contact person. She can be reached at Port Graham Village Councl P. O. Box 5529, Port Graham, Alaska 99603; Office 907-284-2237; Facsimile 907-284-2222; francis907@hotmail.com. Finance Manager Vivian Malchoff will be available for financial related questions. She can be reached at the same address and phone number indicated above for the Tribal Administrator; email Vivian@portgraham.org. Technical assistance contact is Charles Sink from Chugachmiut; 1840 Bragaw Street, Suite 110, Anchorage, Alaska 99508; Office 907-562-4155; Facsimile 907-563-2891; Charlie@chugachmiut.org. 15 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  3.5 Project Risk Discuss potential problems and how you would address them.  Accounting—keeping good books is necessary. The council has contracted North Pacific Rim Housing Authority’s Accounting Division to assist Port Graham with their accounting needs. Port Graham’s Finance Manager provides accounting information and reviews and reconciles accounts for the Council.  Collections—Project heat development is not a free use system. Investments made installing the technology, fuel source procurement, and operations & maintenance costs need to be covered by users. The main user will be Port Graham Village Council. The council and community members will need to be aware that such costs will, like the purchase for fuel oil, will need to be paid for the system to work. Early agreements with other users of the heat source will need to be in place and collections made to help share the burden of the cost for heat by the new system.  Fuel costs—if fuel oil costs decline significantly over time, then wood heat cost savings margins will sink making the biomass heat project less attractive. If fuel oil costs drop to a favorable level, the biomass heat project could be discontinued. Such possibilities exist but cost projections do not warrant such speculation, see Page 4 Chart of Fuel Price Projected in the Port Graham Biomass Project report, attached.  Another side of fuel costs would be the cost for stumpage and the harvest, handling and delivery of the wood. Stumpage prices are proposed to be set within a range of current market prices in Alaska whether as biomass or saw log timber pricing. At some future point when existing purchase agreements could be re-negotiated, some or all landowners may hold out for much higher stumpage prices. A scenario like this is deemed unlikely unless the demand for saw timber dramatically would change. Any timber sale, as observed in past logging operations, generally left 40-percent of the wood on the ground and would make for an inexpensive supply of biomass material if such scenario would occur.  Operations and Maintenance—any system works well when used and maintained. If one of the scenarios involved where heating fuel costs drop dramatically or the price or procurement of wood, there could occur, a loss in interest in keeping the system running well. At some point the system could fail to work. For instance the heat loop could freeze and the pipes break and nobody would wish to fix the system. One would need to put in the operational plan that if a shutdown would occur that the pipes would be drained as a matter of precaution if more than a few days or cold weather would cause a decision to drain the system.  Permitting—before construction begins is deemed a critical component. Although construction season in Port Graham, Alaska is fairly long, there are periods where because of winter and shortness of days, construction could be halted if the correct permits are not in place. Therefore, acquiring such permits before construction begins would be a prudent part of the planning and implementation process. The main issue in this scenario would be 16 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  the mobilization of needed equipment to Port Graham by barge and one would not want to barge the equipment twice for one small construction project.  Trenching obstructions—community building development includes plans that locate different utilities are run underground between buildings and utility corridors. Therefore, in the construction design process for development of a trench to place a heat loop, extra care must be taken to locate all buried infrastructure within the construction design. Construction protocols would also need to be developed in the event other infrastructure is found during the construction phase or in the event cultural artifacts may be found so that all precautions have a format to follow to remedy such encounters. Utility rights-of-way agreement may need to be put in place to connect the Tribal heat loop to the Corporation Building.  Seasonal construction—previously mentioned in the permitting section above, one must be cognizant of when the notice to proceed would occur relative to the construction season. This is critical during the mobilization for construction in regard to barging over construction equipment needed for a project and storage of construction materials. If the timing is off, the mobilization costs could double if equipment is brought and returned twice on one project.  Monitoring heat use—was previously discussed in the Collections section. Monitoring here refers to amount of heat used relative to all customers who share the system. In the report by ChenaPower regarding one scenario in how to charge customers for heat in an equitable manner was by historical fuel oil usage aggregated with all the buildings to be heated. Using this historical data, payment could be assigned on a proportional basis Another way to monitor heat usage for payment would be to install an instrument that could monitor heat usage such as measuring for Btu’s used on an hourly basis and such technology that may be included is later described in this proposal. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit project accounting support. North Pacific Rim Housing Authority has been contracted by Port Graham Village Council for their main accounting duties. The key person at NPRHA that works as the agent for Port Graham is Yvonne Krenzelak, Accounting Consultant, North Pacific Rim Housing Authority, 8300 King Street, Anchorage, Alaska 99518; office 907-562-1444; fax 907-562-1445. Port Graham Village Council’s Finance Manager is Vivian Malchoff, her resume is attached, Port Graham Village Council, P. O. Box 5510, Port Graham, Alaska 99603; office 907-284-2227; fax 907-284-2222. 17 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and who will be the primary user of the accounting system. NPRHA uses FundWare accounting software. The Council’s Finance Manager will interface with NPRHA personnel for transfer of accounting information including transactional data, reports, reconciliation, and auditing purposes. 3.8 Financial Management Controls Discuss 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 Renewable Energy Fund Grant Program. Port Graham Village Council has contracted to NPRHA for accounting services. The Council’s Finance Manager supplies accounting transactional data, requests reports, reconciles accounts, and serves as the point of contact to the Council’s auditing contractor under the guidance and authority of the Tribal Administrator who has the overall financial responsibility under approval by the Council. The Project Manager will oversee the day-to-day financial activities for the construction project and will make recommendations for approval of construction and payroll expenses to the Tribal Administrator or the Council’s Finance Manager as directed. Monthly construction finance reports will be developed by NPRHA and given to the Council and Project Manager for their review and the Council’s approval. After project completion, a complete financial report will be given to AEA. At year’s end at the time of the Council’s usual auditing period, the construction project account would be included in the audit. The Council, the Project Manager, and NPRHA will be instructed in regard to not charging for expenses for overhead or any other unallowable costs. Cost reports for construction will be reviewed monthly to ensure such unallowed costs are not applied. 18 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on the project and the funding request is for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available, in the market, to be served by your project. 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. The selected energy source for the Port Graham Garn boiler project is wood energy. The project is projected to use 100 cords of wood per year or 125 bone dry tons. A 2013 resource assessment conducted by Chugachmiut Forestry conservatively recommends the Annual Allowable Cut, or sustainable harvest level, to be set between 3,259 and 6,578 bone dry tons per year; over 30 times the projected fuel needs for this project (Port Graham Biomass Resource Assessment, 2013). We feel that wood energy is the best energy source for Port Graham as it abundant, accessible, and a familiar fuel. Currently space heating is provided by fuel oil boilers with an imported fuel source. There is no other alternative energy source available without significant infrastructure development. Electrical space heating could be used but the price is not competitive with fuel oil or wood heat. The current fuel oil system is reliable and convenient but is also expensive to Port Graham. The alternative wood fired Garn boiler project would use the locally available and abundant Sitka spruce forest for fuel. This wood heat system will be reliable although not as automatically operated after fuel oil delivery in that the project involved wood fuel procurement, delivery, operations and maintenance activities. These activities include employment of local laborers during fuel wood extraction, payment of stumpage to local land owners, and may help local land owners economically address forest health issues such as spruce bark beetle and windthrow, and create additional operational and maintenance work for Council employees. This creates self-sufficiency in Port Graham by creating additional work that helps return money spent on space heating into the local economy. Initially the system would provide a cost savings of $15,112 annually. We expect that this will result in stable heating prices into the future that will not increase in proportion as much as if petroleum fuel prices rise. 19 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  4.1.1 For Biomass Project only Identify any wood inventory questions, such as:  Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource?  Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Please attach any forest inventory reports Negotiations for a fuel source agreement are currently occurring between Port Graham Village Council and the Port Graham Corporation to supply the necessary fuel for this project Fuel wood extraction from Native Allotments would require additional individual agreements. All restrictions on harvests were accounted for in the Port Graham Biomass Resource Assessment (2013)2 The forest resources in the Port Graham Vicinity are primarily held by the Port Graham Corporation (3,111 acres and 222,502 BDT standing volume), Native Allotment owners with 39 individual parcel (3,938 acres and 302,428 BDT standing volume), and the Port Graham Village Council owning approximately 250 acres which have not been inventoried. The recommended sustainable harvest levels or Annual Allowable Cut for the area is 3,259 to 6,578 bone dry tons per year; over 30 times the projected fuel needs for this project (Port Graham Biomass Resource Assessment 2013). The available fuel wood is almost exclusively Sitka spruce. There is an existing forest road system in place providing access to the existing forest resource. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Heating Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Currently all buildings proposed for heating by the GARN district heat loop are heated by fuel oil boilers. There are currently 5-boilers in place, with 2-boilers in the Council Building, that range in size from 152,000 BTU/hr to 192,000 BTU/hr with efficiencies ranging from 80%-85%. All boilers are 10-years plus in age some are approaching 20-years old. All boilers were manufactured by Weil McLain.                                                              2 Port Graham Biomass Resource Assessment, 2013, is located within the ChenaPower report Port Graham Biomass  Heating Project, 2014, attached.  20 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  4.2.2 Existing Heating Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Port Graham Corporation has been supplying Port Graham Community fuel oil at their cost and does not include holding costs. The corporation said they would be relieved of a cost to the company for such community service. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Port Graham Corporation has been supplying fuel oil to the community at its wholesale cost. There is no mark-up for handling or storage of the fuel. Such cost has been a burden on the corporation. Projected biomass heat project is estimated to displace fuel oil usage during fall, winter, and spring periods. There is also an estimated cost savings on the utilization of biomass heat compared to fuel oil heat. Building owners and users will likely not notice the difference in heating sources or any inconvenience in the transition from fuel oil heat to biomass heat. This is due to using a heat exchanger at each building that ties into existing baseboard hotwater heating systems. Current Energy resources in Port Graham include fuel oil, which can be purchased through Windy Bay Services LLC, electricity through Homer Electric Association, and Sitka spruce cord wood. There is no commercial vendor for cord wood in Port Graham. This project will require the development of a small scale cord wood extraction crew to supply the GARN boiler with fuel wood. We estimate that a crew of 3 people could work for 6.5 days to extract the needed fuel wood. Electrical usage should not be significantly affected by this project. Fuel oil use in the village will drop; this could increase the price per gallon as delivered costs will be spread over fewer gallons of fuel. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: 21 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods  A closed loop hydronic biomass heat system with district heating loop design will be installed to heat Port Graham Village Council offices and Port Graham Corporation Office building. Technology chosen for the project is a WHS 3200 GARN boiler for the heating plant. District heating loop will connect the Port Graham Village Council buildings Anesia Anahonak Moonin Health Clinic, the Port Graham Village Council Office, the Port Graham Public Safety Building/Fire Department, and the Port Graham Corporation Office Building that also houses the Port Graham Museum and Head Start program office. Return water goes back into the boiler for re-heating.  The WHS 3200 Garn boiler for the heating plant is rated at 700,000 Btu per hour peak output. It has a tested efficiency of 85%. In the Port Graham Biomass Project report, Page 10, peak demand for the four identified buildings is 648,0003 Btu’s per hour. The boiler incorporates 3200 gallon capacity heated water storage. From the Port Graham Biomass Project report on Page 10, we find that peak demand for the four identified buildings is 648,000 Btu’s per hour. The annual anticipated generation would be up to 1,489 million Btu’s per year.  The building owners who would benefit from development of this project, Port Graham Village Council and Port Graham Corporation own the land where the boiler will be located and the district heat loop installed. Both were involved in the development of this project and wish to participate. The only barriers that may arise would be finding something buried in the construction design area that is unknown and community acceptance. This later issue relates to emissions from the boiler technology. The technology was chosen because it meets current and anticipated future air emission standards for safety. Community members desire to see a biomass technology on a smaller scale before inclusion of the entire community. As a result, they would like to see, smell, and get a physical sense of what a small scale biomass system operation would look like to make their judgment for acceptance.                                                              3 The BTU/hour calculation assumes 1000 heating hours per year. If one was to analyze the fuel use and calculate BTU/hr based on 1000 heating hours per year the calculation is much greater than 648,000 BTU/hr. Current installed capacity of the four buildings is 760,000 BTU/hr, which meets the entire heat demand of the buildings. This is likely due to the heating season may be greater than 1000 hours per year.  22 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   District heating loop as seen from the design engineering drawings will incorporate “T” connections off the main heating pipe loop and be sent by piping to each building. Piping off each “T” will interface with a heat exchanger in each building and integrate with existing heat loop baseboard systems. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Port Graham Village Council is the landowner where project site is located and owns the land and three of the buildings in the project area. They are also the one developing the project to reduce their heating costs. Port Graham Corporation building and land is included in the district heat loop project. They have agreed to use the system. Fuel source agreements are currently being negotiated with Port Graham Corporation and some area Native allotment owners. Project will utilize cord wood as a fuel source. Therefore fuel source agreements are part of the project development to both gain access to private lands and to obtain cordwood. The access road to private lands is controlled by Port Graham Village Council. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discuss potential barriers  From the Port Graham Biomass Project report, dated June 2014 and attached, there are no required permits from the Kenai Peninsula Borough for the project. State of Alaska, Department of Public Safety, Division of Fire and Life Safety require an application for Fire and Life Safety Plan Review. Those requirements can be found in the report and at www.akburny.com.  Permits are not required by the State of Alaska for timber harvesting, i.e. harvesting for woody biomass. Consultations with the Alaska Department of Fish & Game is required if 23 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  harvest is in proximity to anadromous waters. State of Alaska Division of Forestry is to be notified of harvest activities where timber harvests are 10-acres in size for Region I or if the operation intersects, encompasses, or borders on surface waters or a riparian area. Fuel harvest for this heat project only requires 2-acres of harvest per year. In a 5-year period a maximum of 10-acres would be harvested. It is estimated that such harvest levels would not require the State be notified. However a ”voluntary plan of operations” per 11 AAC 95.210 could be filed with the State of Alaska Division of Forestry for review, if further permits are needed the project would be notified by the State. From the Biomass Project report, Kenai Kodiak Area Division of Forestry Office in Soldotna, Alaska would be notified of harvest activities.  The wood boiler and heat loop system is a closed loop system using only water in the system. Therefore, there would be no discharge of contaminants to seek permitting to operate such a system. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers  Threatened or endangered species—there are no threatened or endangered species within the construction area. Lands where woody biomass may be obtained may need to consider State Forest Practices Act policies and Chugachmiut’s Forest Management Plan* regarding harvest in proximity to anadromous streams and observe eagle and other protected bird nesting areas and their required habitat protection within the area.  Wetlands and other protected areas—in the project area there are no known wetlands or protected areas. Fuel source area woody biomass harvests will be designed to avoid or minimize impacts to wetland or protected areas by following State Forest Practices Act and Chugachmiut’s Forest Management Plan.  Archaeological and historical resources—none identified or known in the construction area. If artifacts are encountered during construction, that area of development would halt and 24 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  the appropriate state and federal offices would be notified of such finds and project would proceed, halt, or conduct other construction activities as directed until such findings are cared for and work could resume.  Land development constraints—Port Graham Village Council owns site location for project and has contributed the land for this project development.  Telecommunications interference—the project will not interfere with wireless telecommunications being developed in the area. Some care will need to take during trenching and placement of the district heat loop as some wire and fiber communications are buried in the construction site area. Port Graham Village Council has knowledge of and site drawings locating these wires and fiber cable crossings.  Aviation considerations—site location is in alignment with existing buildings that are higher than project building design, therefore not creating a height hazard. The property is set back from the community airstrip so as not to interfere with aviation flight lines either.  Visual, esthetics impacts—site will use the existing, but currently, unused old Pump House building location. Therefore, the expansion of the pad and rebuilding of the structure should improve building esthetics. One of the concerns of the community was whether they could see or smell the smoke as a result of combustion in the boiler. Reports on the WHS 3200 GARN boiler are an almost invisible emission would occur but there would be some smell from the smoke emissions that are reported to be minimal by the manufacturer and other users. Whether the emissions would be greater than local wood smoke emissions or not would require operation of the system and keeping track of community member’s experiences of the operation.  Identify and discuss other potential barriers-- 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicant’s records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system 25 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   Projected development cost of proposed renewable energy system Total anticipated project cost is $236,601.56. Requested grant funding is Applicant matching funds Identification of other funding sources Projected capital cost of proposed renewable energy system Projected development cost of proposed renewable energy system 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for any new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of recording the impacts of AEA projects on the communities they serve.) Estimated Operating and Maintenance Costs are $24,993 according to the Port Graham Biomass Project report, attached. Funding for O&M costs would come through either Btu meters to be added to the project construction or through a percentage formulation discussed in the Port Graham Biomass Project report, Page 27 and elsewhere in this proposal. 4.4.3 Heating Purchase/Sale The heat purchase/sale information should include the following:  Identification of potential energy buyer(s)/customer(s)  Potential heat purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project Identification of potential energy buyer(s)/customers(s)  Main customers are Port Graham Village Council with three buildings and Port Graham Corporation with one building.  Port Graham Village Council has another building that could be connected to the district heat loop and this is the old Firehall, NPRHA Modernization Building. Heat requirements for this building would be considerably less as building is used for storage and as work space for repairs. 26 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   There are two North Pacific Rim Housing Authority duplexes located along the district heat loop corridor that could be added into the system. If these buildings were added, it would be at their expense to connect to the heat loop. Also, if these two buildings were added, their addition may exceed the heating capability of the system during periods of high heat load. Potential heat purchase/sales price In the Port Graham Biomass Project report, 2014, on Page 27, two heat sales prices are configured to  charge the four main heat building owners. The process involves a percentage sales price using a  percentage of annual usage, one based on historic fuel consumption of the building and one based on  demand‐Btu’s per hour.  The first one equates to approximately 15 percent of usage by the Corporation  Building and the remaining amount would be Port Graham Village Council’s share. The second estimate  allocates 16 percent to the Corporation Building.  Another method to use is the annual heat production base in thousands of Btu’s divided by the total cost of  fuel use of the Operation and Maintenance Costs for Biomass and Fuel Oil supplement described on Page  17 of the Port Graham Biomass Project report. For example there is an estimated 550,000 MBtu/year used  for these buildings and if one divides this amount by the O&M Costs for Biomass & Fuel Oil supplement, the  cost per MBtu would be $0.04544/MBtu. This method could be used when use the Btu flow meters that will  be attached to each of these buildings to measure their Btu usage. This method could be adjusted annually  to recover cost changes or savings to building owners.  4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below and provide most recent heating fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. The recommended annual allowable cut for timber resources from the Port Graham area is between 3,259 and 6,578 bone dry tones per year, (see Port Graham biomass resource assessment for more details within the Port Graham Biomass Project report attached) this is over 30 times greater than the 125 BDT/year need for the project. Annual average resource availability. Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 27 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt4 grid, leave this section blank) i. Number of generators/boilers/other 5 boilers/ 1 furnace5 ii. Rated capacity of generators/boilers/other 184,000 BTU/hr (2), 152,000 (3), / 74,700(1) iii. Generator/boilers/other type 5 Boilers, 1 furnace iv. Age of generators/boilers/other All heaters are 10+ years old some approaching 20 v. Efficiency of generators/boilers/other 81.5% (2), 85% (3) and 80% (1) b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $1,610 ii. Annual O&M cost for non-labor $950 (Supplies) $37,545 (fuel) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 6,310 gallons diesel in 2013 ii. Electricity [kWh] iii. Propane [gal or MMBtu]                                                              4 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric  Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.    5 Furnace is located in the previously identified NPRHA “Modernization Building.”  28 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] Biomass b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] 550 MMBTU/yr (85% of total heating load which is 648 MMBTU/yr) c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] 125 bone dry tons/ year iv. Other Project Cost a) Total capital cost of new system $236,601.56 b) Development cost c) Annual O&M cost of new system $24,993 (includes wood and oil fuel) d) Annual fuel cost Wood Fuel, $8,125 oil, $5,635, total of $13,760.00 Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 5,365 gallons 29 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  iii. Transportation b) Current price of displaced fuel $5.92 per gallon c) Other economic benefits Local landowners will receive stumpage for fuel wood and local workers will be employed to harvest fuel wood and operate the biomass system d) Alaska public benefits Heat Purchase/Sales Price a) Price for heat purchase/sale $0.04544 per MBtu Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.16 Payback (years) 15.4 An example of 2013 heating costs per gallon reported by Windy Bay Services, LLC, a  Port  Graham Village Corporation and Sun Mountain C.P.A.  “Current year fuel consumption figures (2013) for Tribal and Corporation facilities in the  community indicate fuel usage of 6310 gallons for the year at a  cost of $5.95 gallon.”6                                                                6 Port Graham Biomass Project  report Page 4 and 5.  30 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  31 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building.  Building name Public Safety Building  Type or primary usage of the building Fire Station; VPSO and holding cell; EMS; training rooms; VPSO residence; Emergency equipment storage  Location Latitude 59.348023; Longitude -151.8282112  Hours of operation Varies depending on need  Single structure or multiple units Single structure  Total square footage 4,268  Electrical consumption per year n/a regarding heating application  Heating oil/fuel consumption per year 995  Average number of occupants Variable  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. No 32 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. No o Estimated annual heating fuel savings n/a  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. n/a 4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building.  Building name NPRHA Modernization Building  Type or primary usage of the building Housing office and storage  Location Latitude 59.347863; Longitude -151.827657  Hours of operation 40 hours/week  Single structure or multiple units Single structure  Total square footage 960 33 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   Electrical consumption per year N/A to this heating application  Heating oil/fuel consumption per year Information unavailable   Average number of occupants Varies  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. No  Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. No o Estimated annual heating fuel savings No  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A   4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building.  Building name Anesia Anahonak Moonin Clinic  Type or primary usage of the building 34 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Health and Dental Clinic  Location Latitude 59.347530; Longitude -151.827569  Hours of operation 8-5; 40+ hours/week  Single structure or multiple units Single structure  Total square footage 4,280  Electrical consumption per year N/A to this heating application  Heating oil/fuel consumption per year 2850  Average number of occupants Minimum of 5 staff full time  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. No  Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. No o Estimated annual heating fuel savings No 35 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A 36 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building.  Building name PGVC Tribal Council Building  Type or primary usage of the building Administrative offices; Post Office; Community meeting space; meeting rooms  Location 63795 Graham Road, Unit #1; Latitude 59.347473; Longitude -151.826909  Hours of operation 8-5 daily; 40+ hours/week  Single structure or multiple units Single structure  Total square footage 7,104  Electrical consumption per year N/A to this heating application  Heating oil/fuel consumption per year 4417  Average number of occupants 14+ Varies  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. No  Have building thermal energy efficiency upgrades been completed? 37 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. No o Estimated annual heating fuel savings No  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project. In order for the applicant to receive credit for heating fuel displaced the applicant must provide the most recent invoice for heating fuel purchased.  Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project Potential annual fuel displacement  The Port Graham Biomass Project Report conducted by Chena Power and funded by the AEA projects that this project will displace 5,365 gallons of fuel annually or an annual savings of $15,112. The planned life of the project is 25 years. Not accounting for inflation or the time value of money this results in a total savings over 25 years would be $377,800 Anticipated Revenue (Need to decide the billing method to figure this part.) Potential annual incentives  There are potential annual incentives for a project of this type such as tax credits but because the Port Graham Tribal Council is a non-profit with no tax liability any tax credits are not useful to the council. No local rebates or programs exist to help pay for the cost of this project. 38 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Potential annual revenue streams  The small size of this project does not lend itself to selling carbon credits into existing markets for carbon credits or green tags. Other programs such as the Alaska Carbon Exchange make payments to landowners for carbon sequestration; this type of exchange is not applicable to our project. It is possible that a program we are not aware of could purchase carbon credits from the project or that a new market could be developed but at this time we are not aware of any market to sell carbon credits or green tags to.  Other buildings may be able to benefit by tapping into the designed district heat loop. NPRHA has two duplex complexes adjacent to the district heat loop design location. If “T”s were placed during construction, these buildings would be able to tap into the district heat loop at their expense. Similar heat flow meters could be installed to measure their heat utilization. There may be an impact to their inclusion during periods of high heat load. Non-economic public benefits to Alaskans  The non-economic public benefits for Alaskans for this project are great. The U.S. Census Bureau 2006-2010 American Community Survey estimates 32 Port Graham residents as employed; the local unemployment rate in Port Graham is 22.0% with another 44.6% of the population out of the labor force (unemployed and not seeking employment). This project will create three seasonal timber harvesting jobs and partially fund one maintenance position; these jobs may allow members of the Port Graham community to stay in Port Graham instead of leaving the community to find paying jobs else ware. This project will also stabilize energy costs for users into the future allowing the Port Graham village council, Chugachmiut, and the North Pacific Rim Housing Authority to have more resources for public services. The project may also allow land owners to generate small amounts of income from their land. One current obstacle in Port Graham is that Native allotment owners have been selling their Native Allotments to raise funds. If they were able to sell timber they may be able to raise funds while keeping ownership of the traditional tribal lands in the hands of tribal members. Landowners may also be able to take advantage of timber harvest activates to improve forest health and improve wildlife habitat. There are currently problems with blowdown and overly dense forest stands that could be alleviated through forest harvesting. SECTION 6– SUSTAINABILITY Discuss the operation of the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How the maintenance and operations of the completed project will be financed for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation 39 Renewable Energy Fund Round VIII   Grant Application – Heat Projects   Commitment to reporting the savings and benefits Proposed business structure(s). Port Graham Village Council will operate and maintain the biomass heat project using existing staff  members. The Tribal Administrator will oversee the day‐to‐day operations under the authority of the Tribal  Council and Chief. Port Graham Village Council has a Finance Manager on staff and part time janitorial staff.  Janitorial staff will be asked to feed cordwood into the boiler and provide maintenance.  The additional  duties for the part‐time workers will increase their amount of work during periods of project operation.  Fuel source supply and delivery business structure may have several options. Port Graham Village Council,  as the operating entity, will purchase delivered cordwood. Who delivers the wood can be done by the Port  Graham Village Corporation employees as Port Graham Village Corporation will have most of the fuel  supply, private contractors that would have access to private lands whether Port Graham Village  Corporation lands or Native allotment and Port Graham Village Council lands, or Port Graham Village  Council employees. This latter option was mentioned in the Port Graham Biomass Project report where  Port Graham Village Council would “…hire a temporary, three‐man crew to harvest the necessary woody  biomass for the project.”7 A further description of the harvest method can be seen in that report.  How maintenance and operations of project will be financed. Port Graham Village Council will bear the cost of the maintenance and operations of the project. The  Council will heat three of its major community buildings out of the four community buildings to be heated  by the project. The fourth community building owned by Port Graham Village Corporation will be invoiced a  share for the heating utilization.  In the Port Graham Biomass Project report, two scenarios on how to derive cost share for maintenance and  operations are given on Page 26. One method uses year 2013 fuel oil utilization to set up a percentage  share of the total amount used among the four buildings and the other method uses a percentage share of  the peak Btu’s per hour per building aggregated between the four buildings. These methods may be  changed as this project proposes to install and use Btu flow meters, see Section 9.2 Cost Estimate for  Metering Equipment in this proposal, that measure individual building heat utilization. This methodology  will create a way to share in the costs for heat on a Btu basis and billed accordingly.  Both building owners, Port Graham Village Council and Port Graham Village Corporation have historically  included in their budgets cost for heating fuel. This project will divide the cost for heat between the  purchase of fuel wood, heating oil, and operations and maintenance costs. Costs each month would be  adjudicated on a per building and Btu utilization basis.  Identify operation issues that could arise.                                                              7 Port Graham Biomass Project, Page 23.  40 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  During periods of operation, the Tribal Council will need to insure the boiler is fed cord wood in a timely  manner. Normal room temperature heat is needed at 8:00 AM each working day. For some of the buildings  heat may be needed on weekends too. Therefore scheduling the feeding of cordwood into the boiler each  day for nominal temperature experience will take some testing and recording. Swings in temperature may  throw off scheduled cordwood stoking periods as seasonal adjustments would need to be made.  Care in engineering design to utilize building heat exchangers will include an outside air monitor to adjust  thermostatic heat controls for district heat loop utilization. One concern regarding this issue would be the  event where district heat loop demand may not be activated to heat a building during temperature drops  causing the diesel boiler to activate that would then try to heat water for the building and inadvertently  provide heat through the heat exchanger to the district heat loop. This design would be part of a fail‐safe  system until thermostatic controls can be fixed. Such outside air controllers are generally used for  maximizing heating efficiency.  Fuel source delivery would need to take precautions to keep woody biomass material reasonably dry.  Wetter the cordwood utilized, then the less efficient the heat recovery. Therefore, good handling, storage,  and delivery practices will be necessary.  During periods of cold weather and times when the boiler is not used, care must be taken to drain the  district heat loop system. This would be critical if extended periods of non‐utilization occur. System design  will not include glycol, only water with a small amount of a non‐corrosive agent added to the system.  Therefore, a procedure would need to be developed to properly drain the system in the event that this may  occur. Boiler house includes an electrical heater so that the boiler may not be affected by a freeze‐up  situation.  During periods of heavy snow, fuel storage yard will need to be cleared of snow to access cordwood fuel.  Enough fuel would also need to be stored to ensure supply during periods of limited access to fuel source  lands.   A description of operational costs. Port Graham Tribal Council operational costs would include staff time costs and cordwood delivery costs.  The Tribal Administrator and Finance Manager costs are already covered in the Tribes current budget. Time  spent on project operations would need to be recorded for cost allocation purposes. Additional work for  the janitor or another part‐time employee would be an operational cost that can be tracked. Billing cost  and reporting for heating utilization would include use of North Pacific Rim Housing Authority’s accounting  department.    Fuel source supply costs would be paid on delivery to the fuel storage yard for annual supply. Generally,  fuel supply would be gathered within a short period during summer or periods when there is good road  41 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  access to fuel source sites. A description of the harvest costs is included in the Port Graham Biomass Project  report on Pages 14‐16.    Delivery costs from the fuel storage yard include the loading and hauling to project site and unloading.  There would be a cost during periods of heavy snow when access to the fuel storage yard would need to be  cleared.  There is an annual inspection of maintenance of boiler operations cost.  Administrative and accounting costs would need to be cost allocated to fully understand all burdened costs.  Commitment to reporting the savings and benefits. Port Graham Village Council is committed to tracking woody biomass heat operation project costs to  determine the benefits of this alternative renewable heat source. The Council wishes to determine the  extent of the heat source savings compared to full fuel oil heating costs. They would also like to reduce the  amount of fuel oil use in the community. Utilizing their local Finance Manager and the contracted  accounting team of NPRHA, good monthly cost information will be recorded on a monthly basis. Both  NPRHA and the Tribe’s Finance Manager develop quarterly and annual reports. They will include cost  accounting reports for the community heat project during these report periods.  SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Port Graham Tribal Council has prepared for this project over a relatively long period. A Department of Energy grant for a feasibility study regarding biomass utilization for heat or power began in 2005 that resulted in a report June 2007. In the interim, two U. S. Bureau of Indian Affairs funded Integrated Resource Management Plans, involving resource planning for the area, were developed including the intent to develop a biomass heat project. A Phase III engineering design, fuel source development, and permitting grants were applied for from Alaska Energy Authority that was completed June 2014 and a U. S. Department of Energy Office of Indian Energy and Economics that will be completed by December 2014. Grants completed have met requirements and the current grant with the DoE is nearing completion. An engineering design and cost estimate has been completed for the DoE Phase III project development for the Port Graham Biomass Project. The report to AEA included sections on project 42 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  economics, fuel sourcing, fuel availability, and permitting. The last part of the DoE grant is getting in place fuel source agreements with area landowners. Once obtained, a final report to DoE will be submitted. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2014. Port Graham Village Council has been looking for an alternative energy source to supplant fuel oil heating. Because of the abundance and access to fuel wood, the Council has supported the studies and is working to install a community biomass heat source. Using local resources and labor was also considered as additional benefits. During development, the community had concerns about biomass utilization and combustion emissions. Port Graham Village Corporation in the late 1980s through the 1990s harvested a majority of their commercial timber stands. The visual impact and change to the community’s environment left a major impression upon them to the point of the mentioning of utilization of wood through harvesting has left a bad impression upon them. Therefore, a smaller scale woody biomass harvest for community building heat as opposed to the entire community’s conversion to biomass heating is deemed more tolerable and an experiment. The annual harvest of 100 cords wood each year does not seem to be as much of an impact as would a larger wood harvest scenario. Currently, on lands around Port Graham, wind throw has been affecting timber lands with a minimum of 5-10 acres impacted each year and wood utilization makes acceptable sense. Small scale harvest at 2-acres per year also does not seen to be as invasive to the public either, if that were to occur. There is a concern about project emissions. A large boiler with high temperature heating was chosen because of the high heat combustion would reduce emissions to an acceptable standard for a community project. The community wishes to see, smell, and feel what this project would produce before supporting building out to a community scale biomass heat project. 43 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project DOE Feasibility Study $150,000  DOE/ARRA Update Feasibility Study $39,700  AEA Round IV; Phase III Design and Permitting $75,000  DOE Design and Permitting $127,640  9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Richmond Engineering estimated that installation of BTU meters for each building will cost approximately $1,500 per meter. This includes the cost of installation, the meter, and supplies. Richmond Engineering recommends either the Verus Ubdystrues 380 series Tee Meter or an ONICON BTU meter. Our project includes heat for 5 buildings so 5 BTU meters need to be installed for a total cost of $7,500. 44 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  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 and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. 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 at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grantee Matching Source of Matching Funds: TOTALS Grant Funds Funds Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project. See Milestone list below. ) Finalize construction drawings and specifications $ 9,000 Contact A/E to update information related to unknown conditions and changes to codes. 8/1/2015 $ 9,000 Construction Project Management - Paluwik, LLC $ 39,000 $ 28,150 Partner In-Kind $ 67,150 Prepare construction bid docs 9/30/2015 $ 2,167 Solicit for contractors 11/15/2015 $ 2,167 Review bids 11/30/2015 $ 2,167 Award contract 12/15/2015 $ 1,084 Project Management 6/30/2017 $ 31,416 $ 28,150 Mobilization $ 14,000 Contractor mobilizes equipment and materials 5/15/2016 $ 14,000 Project construction begins $ 248,388 $ 23,000 In-Kind $ 271,388 Renovation to Pump House – Boiler House 6/30/2016 $ 24,110 $ 23,000 Excavation for arctic piping 8/30/2016 $ 119,521 Install boiler 9/15/2016 $ 65,928 Retrofitting existing boilers and installing heat exchangers, appurtenances and BTU Meters 9/15/2016 $ 38,829 Test system $ 45 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  1,500 Conduct pressure tests on system 9/30/2016 $ 750 Provide training to PGVC staff on boiler operation 9/30/2016 $ 750 Final inspection and acceptance $ 250 $ 14,075 Partner In-Kind $ 14,325 Final inspection and acceptance 10/15/2016 $ 250 $ 14,075 Begin stockpiling biomass fuel $ 29,327 $ 14,075 Partner In-Kind $ 43,402 Map areas for cutting 7/15/2015 $ 2,167 $ 14,075 Hire Biomass fuel source crews 7/31/2015 $ 2,167 Begin cutting, hauling and storing Annual $ 8,125 1st year O&M 6/30/2017 $ 16,868 TOTALS $ 341,465 $ 79,300 $ 420,765 Budget Categories: Direct Labor & Benefits $ 54,354 Travel & Per Diem $ - $ 7,944 Partner In-Kind $ 7,944 Equipment $ 10,251 Materials & Supplies $ 152,397 $ 23,000 In-Kind $ 175,397 Contractual Services $ 43,334 Construction Services - Included in Labor, Materials & Equipment $ - Other $ 81,129 $ 48,356 Partner In-Kind $ 129,485 TOTALS $ 341,465 $ 79,300 $ 420,765 46 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 10 – 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: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature 47 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: Please submit an updated form whenever there is a change to the above information. 48 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  SECTION 11 – 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 web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: 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 49 Renewable Energy Fund Round VIII   Grant Application – Heat Projects  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 Date 50