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Home My WebLink About1.LakeandPenAEA Heat GrantRenewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 1 of 23 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Lake and Peninsula Borough Type of Entity: Local Government- Borough Fiscal Year End: June 30th Tax ID # 92-0128922 Tax Status: ☐ For-profit ☐ Non-profit X Government (check one) Date of last financial statement audit: 6/30/13 Mailing Address: Physical Address: PO BOX 495 101 Jensen Road King Salmon, AK 99613 King Salmon, AK 99613 Telephone: Fax: Email: 907-246-3421 907-246-6602 manager@lakeandpen.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Nathan Hill Title: Borough Manager Mailing Address: Same as above Telephone: Fax: Email: 907-246-3421 907-246-6602 manager@lakeandpen.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Lamar Cotten 907-301-8737 lamarworkcotten@gci.net Bob Loeffler 907-250-4621 907-248-6465 bobl@jadenorth.com Susan Edwards 907-246-3421 907-246-6602 finance@lakeandpen.com Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 2 of 23 7/2/14 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 X A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. X 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) X 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) X 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) X 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 3 of 23 7/2/14 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. Lake and Peninsula Borough Wood Boilers 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 Alsworth (60.211169,-154.313393), Nondalton (59.977349,-154.845829), Pedro Bay (59.794417,-154.105339) 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Port Alsworth, Nondalton, and Pedro Bay 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind to Heat X 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 X Construction Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 4 of 23 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The goal of this proposed heat project is to offset the heating fuel costs in three Borough communities by installing wood boilers. This project will provide wood boilers for community facilities in Port Alsworth, Nondalton, and Pedro Bay. These villages have been a part of a detailed feasibility/design study, which has shown that wood boilers are economically and technically feasible. Upon approval, this project would allow the Borough to advertise for a RFP to construct these facilities. These communities have been selected because of their ability to maintain their community facilities, and commitment to use and maintain the wood boilers, and they have access to sustainable wood resources. 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.) The three Lake and Peninsula Borough communities will realize an estimated $53,642.81 in annual fuel displacement, which is equivalent to 9,104 gallons of oil. Over the lifetime of the project, this will achieve displacing 182,080 gallons of oil. This is an average of 11.9 years investment payback for the overall project. Local jobs will also be created to gather and chop wood for the boilers. 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. The total Construction Project, including RFP evaluation and inspection, is $309,450 (please see attached LPB Wood Boiler Budget). The Borough is requesting $247,560 from the Renewable Energy Fund and has agreed to match 20% of the project cost, which is $61,890 (please see attached LPB Reso 14-13). All but $15,000 of the total project funds will go into construction. 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 $ 247,560 2.7.2 Cash match to be provided $ 61,890 2.7.3 In-kind match to be provided $ 0 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) $309,450 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 5 of 23 7/2/14 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 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. $ 309,450 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. $ 1,092,480 over the 20 year project life, all three communities combined 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. $ Not quantifiable, but the project will provide jobs to cut wood in the villages. 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. Nathan Hill, Borough Manager (resume attached) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 6 of 23 7/2/14 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 RFP Issued Subject to available funds July 1st, 2015 July 31st, 2015 Contractor Selected August 1st, 2015 Construction Begins August 1st, 2015 Sept. 2016 Project Finalized & Grant Close-out Final inspections and commissioning Nov. 2016 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. This project will be accomplished using a contractor selected by the RFP. Therefore, the expertise will be determined in response to the RFP. The grant does include a quality control review to evaluate the proposals and inspect the final construction. 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. At the milestone dates listed in Section 3.2, a status report will be provided to the Authority. See Section 1.1.1 for alternate points of contact. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 7 of 23 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. The major risk for this project is that the communities will not harvest wood for the boilers. This risk has been addressed by selecting communities who have a record of maintaining community facilities, have committed to use and maintain the wood boilers, and have the ability to follow through with projects of this sort. 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. Borough Finance Officer, Susan Edwards (resume attached), is tasked with project accounting. 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. Lake and Peninsula Borough uses fund accounting fully compliant with GASB and is recorded and reported through computerized accounting software. Each project will have a separate fund account for the posting of revenues and expenses. 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. The Borough maintains internal accounting controls for all projects. All expenses are preapproved either by negotiated contract of by bid. Invoices are approved for payment by the Borough Manager and the Finance Officer. Project costs are reviewed monthly by the Borough Manager, the Project manager and the Finance Officer to ensure that project budget is being adhered to. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 8 of 23 7/2/14 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 energy source for this project is wood. This is ideal due to the large amounts available around the villages, and because it is a renewable resource. The only other realistic energy source for heat in these villages is fuel oil, which needs to be purchased and flown or barged into the selected villages. Alternatives have been analyzed in a study done by RBA, which is attached. 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 In the community of Nondalton, the surrounding 126,000 acres of mostly forested landscape is owned by Kijik Corporation, and their property extends into Lake Clark; they have provided a letter of support for this project –attached. Pedro Bay Corporation owns the land surrounding Pedro Bay, and they have a wood harvesting permit program. Spruce trees are the main species found in the three communities. 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. The community facilities in Port Alsworth, Nondalton, and Pedro Bay are currently heated with fuel oil boilers. The boilers are a variety of ages and sizes. 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 9 of 23 7/2/14 Fuel oil is the existing energy resource, and is shipped by air or by barge over the portage road from Williamsport to Pile Bay, where it loaded onto another barge and shipped across Lake Iliamna to the communities. In the case of Port Alsworth, all fuel oil is shipped by air. This project will decrease transportation of fuel by air, and barge, which will decrease the risk of a fuel spill. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Fuel oil is currently used to heat community buildings in these villages. If approved, less will be used and money will be saved in the long run. This project will also provide local jobs for residents to harvest and cut wood. 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: • 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 See RBA Feasibility study for a description of wood boiler technologies specific to each of the Borough communities studied. Additionally, a brochure of the Garn Jr. wood boiler is included with the application since the model was not proposed in the original feasibility study. 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. Site owners have either agreed to the project and/or there is a wood harvesting program already in place to access the resource in each of the three communities. The support letter has been attached. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 10 of 23 7/2/14 • List of applicable permits • Anticipated permitting timeline • Identify and discuss potential barriers This is a simple project to provide wood boilers near existing facilities. The only permit required is from the Fire Marshall. The wood harvesting is generally from private land and is below the level requiring a plan of operation approval from the Alaska Division of Forestry. 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 The new Garn WHS-1000, “Garn Jr” is a smokeless heating unit that meets EPA guidelines for air emissions. None of the above environmental and land use issues apply. The proposed projects are in developed areas of communities, near existing buildings. 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 • Projected development cost of proposed renewable energy system Project development costs were developed using a combination of the RBA feasibility study which provided general estimating sheets for each building proposed in the three communities (based on 2011 construction costs) and from actual development costs from a previous Lake and Peninsula Borough Wood Boiler project to install wood boilers in two neighboring Borough communities: Igiugig and Kokhanok (2012). From these two sources of cost information, and a verbal price quote from the Alaska Garn dealer representative (September 16,2014), project development costs were updated. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 11 of 23 7/2/14 The total Construction Project, including RFP evaluation and inspection, is $309,450 (please see attached LPB Wood Boiler Budget). The Borough is requesting $247,560 from the Renewable Energy Fund and has agreed to match 20% of the project cost, which is $61,890 (please see attached LPB Resolution 14-13). All but $15,000 of the total project funds will go into construction. The proposed energy system in each community is a Garn Jr. More information on this system can be found at http://www.garn.com/, and an informational brochure has been included with this application. The base quote for the unit is $12,595 but the accessories, miscellaneous pump and flue supplies, the option to insulate the unit onsite within a weatherproof enclosure, and shipping from Minnesota to the rural communities has been estimated at $50,000. The associated development costs for personnel, the completion of electrical and plumbing work in each facility, equipment to complete the install, and contingency adds another $48,150. Lastly, the Borough will hire a reviewer for the RFPs and an inspector to insure quality control for the project, which is estimated at $15,000. 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.) The selected communities have agreed to pay residents to cut wood for the boilers and to cover the costs for maintenance. These funds will come from money saved by installing the wood boilers, which would otherwise be spent on purchasing fuel oil. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 12 of 23 7/2/14 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 This project is intended to lower the cost to heat community buildings in the selected villages. Therefore, this does not apply. 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. Annual average resource availability. 100% Unit depends on project type (e.g. wind speed, hydropower output, biomass fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other Various boilers/heating systems in each community. Please see RBA study, attached. ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor n/a ii. Annual O&M cost for non-labor 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] n/a ii. Fuel usage Diesel [gal] n/a Other iii. Peak Load n/a 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 13 of 23 7/2/14 iv. Average Load n/a v. Minimum Load n/a vi. Efficiency n/a vii. Future trends n/a d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 2,500 - 10,400 (depending on facility) ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a 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: Garn WHS-1000, 180,000 BTU/H b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] n/a ii. Coal [tons or MMBtu] n/a iii. Wood or pellets [cords, green tons, dry tons] 20-80 cords iv. Other Project Cost a) Total capital cost of new system $150,000 (3 units in 3 communities) b) Development cost $144,450 (3 units in 3 communities) c) Annual O&M cost of new system $7,300 d) Annual fuel cost $29,010.13 (3 facilities combined) Project Benefits a) Amount of fuel displaced for i. Electricity n/a ii. Heat 9,104 gallons iii. Transportation n/a Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 14 of 23 7/2/14 b) Current price of displaced fuel Between $5.24-$6.08/gallon c) Other economic benefits Local employment to provide wood and O&M for unit d) Alaska public benefits Heat Purchase/Sales Price a) Price for heat purchase/sale n/a Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Pedro Bay ratio 2.4; Nondalton ratio 8.61 ; Port Alsworth 3.03 (AEA Economic Analysis Used to derive this ratio) Payback (years) Average of 11 years Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 15 of 23 7/2/14 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 Smokehouse Bay Annex • Type or primary usage of the building Public • Location Pedro Bay, Alaska • Hours of operation variable • Single structure or multiple units Single structure with multiple uses • Total square footage 2,025 SF • Electrical consumption per year 6,776.77 kwh • Heating oil/fuel consumption per year $7,153 • Average number of occupants variable • 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. n/a o Estimated annual heating fuel savings $4,694.73 • 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. 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 City Multi-Use Facility • Type or primary usage of the building City Offices and Fire Truck Garage Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 16 of 23 7/2/14 • Location Nondalton, Alaska • Hours of operation variable • Single structure or multiple units Single structure with 3 office units • Total square footage 3,400 SF • Electrical consumption per year • Heating oil/fuel consumption per year 10,400 gallons • Average number of occupants variable • 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. n/a o Estimated annual heating fuel savings $41,048.97 • 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 17 of 23 7/2/14 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 Improvement Center and Fire Hall • Type or primary usage of the building public • Location Port Alsworth • Hours of operation variable • Single structure or multiple units Single structure • Total square footage 4,000 SF • Electrical consumption per year • Heating oil/fuel consumption per year 2,500 gallons • Average number of occupants variable • 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. n/a o Estimated annual heating fuel savings $7,899.11 • 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 18 of 23 7/2/14 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 Installing the Garn Jr. wood boiler in each community will have the following project benefits: • Pedro Bay will realize an estimated $4,694.73 in annual fuel displacement (846 gallons of oil), resulting in a 20.9 years investment payback period. Please see attachments Pedro Bay GARNPaybackCalculator v1.2 (1) and also the RBA Feasibility Study. • Nondalton will realize an estimated $41,048.97 in annual fuel displacement (6,751 gallons of oil), resulting in a 2.4 years investment payback period. Please see attachments Nondalton GARNPaybackCalculator v1.2 (1) and also the RBA Feasibility Study. • Port Alsworth will realize an estimated $7,899.11 in annual fuel displacement (1,507 gallons of oil), resulting in a 12.4 years investment payback period. Please see attachments Port Alsworth GARNPaybackCalculator v1.2 (1) and also the RBA Feasibility Study. In total, the Lake and Peninsula Borough communities will realize an estimated $53,642.81 in annual fuel displacement, which is equivalent to 9,104 gallons of oil. Over the lifetime of the project, this will achieve displacing 182,080 gallons of oil. This is an average of 11.9 years investment payback for the overall project. There are also non-economic benefits of the project in that some of the value of displaced fuel oil will be used to provide skills-appropriate jobs in the village, and provide revenue internal to the village rather than to fuel suppliers from another region. In addition, it will help to insulate the village from price variation in fuel oil prices. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 19 of 23 7/2/14 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 • Commitment to reporting the savings and benefits The main operational issue that could arise for this type of project is that the villages fail to use the wood boilers by not cutting wood. The Borough has addressed this issue by involving the community groups in the planning and implementation of the project as well as ensuring that the benefit of the project goes directly to the village. The selected villages were also chosen by the Borough due to their ability to follow through with type of project and maintain community facilities. The only significant operation cost for the project is paying someone to supply the wood, chop it, and feed the boiler. 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. A Wood Boiler Feasibility Study was completed for seven Lake and Peninsula Borough Communities in 2010 (attached). RBA Engineers completed a detailed analyses for 1-2 facilities in each community: Igiugig, Kokhanok, Newhalen, Nondalton, Pedro Bay, Port Alsworth, and Iliamna. Since then, wood boilers have been successfully installed in Kokhanok and Igiugig. This application is to install the newest and most efficient cord wood boiler –the Garn 1000—in the communities of Nondalton, Pedro Bay, and Port Alsworth. Once the grant is approved, the Borough can ensure the completion of the project within a one-year timeframe. Please see cover letter. 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. See attached letters of support. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 20 of 23 7/2/14 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 See cover letter and attached resolution. 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. n/a Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 21 of 23 7/2/14 Construction & Commissioning Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS $ $ $ Request for Proposals Due July 31, 2015 $0 $5,000 LPB General Fund Appropriation $5,000 Contractor Selected August 1, 2015 $0 $0 $0 Construction Period September 30, 2016 $247,560 $46,890 LPB General Fund Appropriation $294,450 Inspection, Project Finalization & Commissioning, November 1, 2016 $0 $10,000 LPB General Fund Appropriation $10,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $247,560 $61,890 $309,450 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $247,560 $61,890 $309,450 Construction Services $ $ $ Other $ $ $ TOTALS $247,560 $61,890 $309,450 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 22 of 23 7/2/14 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 23 of 23 7/2/14