Loading...
HomeMy WebLinkAboutwoodfired boiler app. FY 15Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 1 of 41 7/2/14 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. • 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 2 of 41 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Southeast Island School District Type of Entity: school district Fiscal Year End: June 30, 2015 Tax ID # Tax Status: For-profit ☒ Non-profit Government (check one) Date of last financial statement audit: 6/30/2013 Mailing Address: Physical Address: P.O. Box 19569 1010 Sandy Beach Rd. Thorne Bay, AK 99919 Thorne Bay, AK 99919 Telephone: Fax: Email: (907) 828-8254 (907) 828-8257 pgoulding@sisd.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Priscilla Goulding Title: Grants and Federal Programs Manager Mailing Address: P.O. Box 19569 Thorne Bay, AK 99919 Telephone: Fax: Email: (907) 828-8254 (907) 828-8257 pgoulding@sisd.org 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Lauren Burch (907) 828-8254 (907) 828- 8257 lburch@sisd.org Jonathan Fitzpatrick (907) 329-2277 (907) 828- 8257 jfitzpatrick@sisd.org Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 3 of 41 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 ☐ 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) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 4 of 41 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. Southeast Island School District 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. Thorne Bay School 1010 Sandy Beach Road, Thorne Bay, AK 99919 Naukati School 100 Heather Street, Naukati, AK 99950 Whale Pass School 126 Bayview Road, Whale Pass, AK 99950 Hollis School 6488 Klawock Hwy. Hollis, AK 99928 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The communities of Thorne Bay, Whale Pass, Hollis, and Naukati will benefit from this project because the new boilers will provide heat to the schools, adjacent teacher housing units, and greenhouses, where students will be involved in growing vegetables, fruits, and flowers. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind to Heat ☒ Biomass or Biofuels ☐ Hydro to Heat Solar Thermal ☐ Heat Recovery from Existing Sources Heat Pumps ☐ Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction Reconnaissance Final Design and Permitting Feasibility and Conceptual Design ☒ Construction Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 5 of 41 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. We intend to use wood biomass to replace diesel as the heat energy source by installing wood fired boilers in four school communities. We anticipate reduced heating costs for the schools and associated buildings, creation of local jobs in supplying the cordwood, and less dependence on fuel oil. We have purchased a greenhouse for Naukati that will also use the heat from the boiler and will provide healthy, nutritious food for our students and the community, in addition to giving students opportunities to learn life-long skills. Thorne Bay School received an AEA grant in 2009 to install two GARN wood fired boiler units, and while the system has been operating, it has proven too small for the job. The units currently in use, (proto-types), can easily be moved with a forklift, so part of the proposal is to install them at two other school sites, Whale Pass and Hollis Schools. In order to heat the facility in Thorne Bay, which includes a teacher housing unit and a hydroponic greenhouse, the current system would be replaced with 2 GARN 3200’s, and a structure built to house the boilers. Very little reconstruction would be necessary in Thorne Bay due to the portability of the current Garn Pacs. In Whale Pass and Hollis, structures would be built to house the boilers. A wood storage area will also be constructed at Hollis, now the only one of the four communities where there is no wood storage shed. At Naukati School we would install a wood fired boiler (2 2200 Garns) and build the housing for it. The Naukati School is the same size as Howard Valentine School, in Coffman Cove, where we have an operating Garn system. Naukati will be modeled after the Coffman Cove set-up. Wood storage facilities have already been built in Naukati and Whale Pass, with 30 cords in Naukati and less than 10 in Whale Pass. Southeast Island School District is committed to moving in a direction of local energy independence, breathing life into small business enterprises such as wood cutting, and involving students in growing food, stoking the boilers, and acquiring both work and meaningful life skills. 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 benefits of this project include not only a more efficient and suitable system in Thorne Bay, but also substantial savings that the relocated boilers will create for Hollis and Whale Pass Schools. Naukati will have a new boiler installed, replacing the current waste heat exchanger system (from city generators). In Naukati, we have been very happy with the heat exchange system, but it is about to go away because the community is going to be connected to electricity in November, 2014 and at which point the school will go back to diesel heat. All four school sites will reap the benefit of having greenhouses and teacher housing units heated by the wood boilers, in addition to the school buildings. The greenhouse plan includes growing vegetables to feed students in the school lunch program as well as giving them vocational experience in its operation. Benefits to the Prince of Wales community as a whole will be more energy independence and access to high quality fresh food. We are seeing the benefits now as customers are able to buy vegetable starts at a reasonable cost in the spring and buy fresh lettuce at several shops around the island. Only one of our nine communities has a grocery store. We anticipate significant savings in heating costs. Our records for both Thorne Bay and Coffman Cove Schools show the impact of our savings in fuel so far. In Thorne Bay, the fuel consumption for the school went from 19,937 gallons in FY13 to 11,481 gallons in FY14. At $4.09 per gallon, this generated a savings of $34,415.92 in fuel. In Coffman Cove, fuel consumption went from 2,136 gallons in FY 2012 to zero in FY13. The Coffman Cove School bought 30 cords of wood in 2013, in 2014 bought only 4 cords. (Enough was stored that additional purchase was unnecessary.) Though Coffman Cove School is of course, not part of this proposal, we are gaining Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 6 of 41 7/2/14 valuable experience from its current operation. For Naukati, a 10,000 square foot facility, we anticipate $24,913 savings per year; for Whale Pass and Hollis, 2,500 square foot facilities, $3,825 and $6,950, respectively, per year. For Thorne Bay School, a 41,000 square foot facility, greenhouse 800 sq.ft, teacher housing 3000 sq. ft. we anticipate a savings of $50,438.00. This is a total of $86,126. The total reflects the difference between the cost of heating with diesel and the projected cost the district will spend on cordwood in a year. These figures do not include the fuel savings for the teachers who will be living in the housing units, also currently heated with diesel. Though the savings diminish somewhat when we add in the cost of paying staff or students to feed the boilers, some of the benefits can’t be calculated in dollars. In 2014 we hired one adult staff to feed the boilers and move pallets of wood with a forklift, and two high school students to feed the boilers. The students’ income was a significant boost to these low-income families. Jobs are very hard to come by in our small communities, so these were coveted positions. Several individuals in Thorne Bay and Naukati benefitted from selling wood to the school district, and we anticipate this opportunity will be welcomed in Hollis and Whale Pass. With fluctuating oil prices and the instability of the foreign market, wood boilers are a sensible choice for southeast Alaska. We have no air inversion problems due to the marine climate and have excellent air circulation. We have not experienced problems with smoke partly due to the low emissions from the Garn boilers. The chart below, from the 2008 feasibility study for Naukati and Coffman Cove illustrates the cost of BTU’s using the two types of fuel. In addition to lower energy costs, the contracts for supplying wood in the four locations could be the impetus to start new businesses providing employment for local residents. The Naukati feasibility study of 2008 by Dan Parrent, states that “…a large, commercial account could be expected to induce some economies of scale and keep cordwood prices reasonable.” In our school district with a poverty rate of 69%, (based on the Free and Reduced meal rates), any additional jobs created in a community are not only a boost to the economy, but effect the every day lives of our families. Other advantages that are hard to put a cost factor to, include families remaining in the community for the quality of life that small schools offer, with open gym nights, regularly scheduled sports activities, and additional events that take place at the gym such as Boy and Girl Scouts, 4H, and competitive archery. Heated greenhouses would not be feasible with diesel fuel, but with the surplus heat generated by wood, many new possibilities open up for the students, their families, and community members. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 7 of 41 7/2/14 The Thorne Bay greenhouse that uses heat from the boiler, located right next to it, has been operating for almost a year now. Launched as part of a high school Natural Resources class, the greenhouse is providing lettuce to the school lunch program, as well as being sold to the local grocery store and an organic market in Craig, 43 miles away. Having learned valuable information about pH, nutrients, and climate control required for the lettuce, we are positioned to embark on the next greenhouse project in Naukati. The greenhouse (792 sq. feet) has been purchased and the district has received for a grant from the Crossett Foundation to help purchase the specialized hydroponic equipment. This greenhouse will be built by the end of October. The district is planning for crops such as cucumbers and tomatoes. This is a huge benefit that will effect students, the community and add to our growing list of student-run enterprises. This outcome will be possible through the heat from the Naukati wood fired boilers. Teacher housing residents will operate the boiler in Thorne Bay, saving the district at least $15,000 per year. At the other sites, savings will be less, but the same arrangement will be put in place. A new housing unit was just built in Whale Pass and one is planned for Naukati. They are next to the schools and will or have been plumbed to easily connect to the wood fired boiler. Teachers have readily agreed to feed the boilers in exchange for the heat, reducing our labor costs dramatically. The students will also get experience with the boilers at each site. At this point, students are earning money by stoking the boilers at both Thorne Bay School and at Coffman Cove School. Three high school students were trained and held the jobs almost the whole 2013-14 school year. Families of these students were helped tremendously by this extra income. There is a similar impact on students who are employed in the greenhouse. 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. For the entire project we will need two 3200 Garn boilers for Thorne Bay and two 2200’s for Naukati. Other purchases will include construction supplies for boiler buildings and a wood storage building in Hollis. Whale Pass and Hollis will need hydronic heating systems installed. Funds will be needed to move the two GarnPacs from Thorne Bay to Whale Pass and to Hollis. (The units will be moved by truck/trailer by road to the sites.) The main sources of funding anticipated for the entire project is through the Alaska Energy Authority and Southeast Island School District general fund budget. An important off-shoot to the wood boilers is greenhouse food production. To bring us closer to this goal, the district just received a grant for $18,000 from the Ruben Crossett fund to buy part of the hydroponic system to be installed at the Naukati greenhouse. Community engagement is anticipated such as involving students in construction and biomass processing whenever possible. Funds needed for the entire project are $832,635.00. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 8 of 41 7/2/14 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 $832,635.00 2.7.2 Cash match to be provided $40,000.00 2.7.3 In-kind match to be provided $41,708.00 2.7.4 Other grant funds to be provided $18,000.00 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $932,343.00 Other items for consideration 2.7.6 Other grant applications not yet approved 2.7.7 Biomass or Biofuel Inventory on hand $26,000. 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $17,000.00 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. $872,635.00 2.7.10 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $32,000.00 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. $86,126.00 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. $48,600.00 (amount paid for local cordwood) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 9 of 41 7/2/14 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. School District Maintenance Supervisor, Jonathan Fitzpatrick, who has successfully overseen the previous projects, will manage this venture. 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 Application submitted Grant manager completes application Sept. 2014 Sept. 2014 AEA Grant awarded Notice of award mailed/emailed Spring 2015 Spring 2015 RFP put out for final design Advertise RFP June 2015 July 2015 Design submitted to School Board Decision point – any changes or concerns August 2015 August 2015 Construction of wood fuel storage building; Hollis Project manager directs work, hires any additional workers Sept. 2015 Nov. 2015 Boilers ordered, plumbing, electrical supplies Project manager orders materials, supplies, equipment Sept. 2015 Oct. 2015 Boilers from TB moved to other sites Samson Tug and Barge or AK Marine Lines moves existing boilers from Thorne Bay Sept. Sept. Construction of boiler buildings (one at a time) – Thorne Bay, Naukati, Hollis, Whale Pass Project manager monitors work to ensure timely completion of phases. (Each site will be completed entirely before another one is begun.) Sept. 2015 Sept. 2016 Complete construction Finalize construction, complete check- list. Projects will be completed in the following order: Thorne Bay, Naukati, Hollis, Whale Pass Nov. 2015 Nov. 2016 Integration and testing Project manager completes test-run and engages new systems Nov. 2015 Dec. 2016 Decommissioning of old systems Project manager will supervise de- commissioning Dec. 2016 Jan. 2017 Commissioning and start-up start-up of boilers, begin collection of data Jan. 2016 Jan. 2017 Operations reporting This is done on an annual basis by the project manager for 10 years following start-up 2025 2026 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 10 of 41 7/2/14 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. Key personnel for school district Jonathan Fitzpatrick, Maintenance Supervisor, Southeast Island School District – Project Manager Lauren Burch, Superintendent, Southeast Island School District – Project Supervisor Lucienne Smith, Business Manager, Southeast Island School District – financial reporting Priscilla Goulding, Grant Coordinator, Southeast Island School District – grant procedures and paperwork Contractors may be hired as project develops. Equipment The district is currently using two Garn boiler systems, and we are confident that this equipment is a good fit for our projects. The units work well with the type of wood we are using, and we know that they are most efficient when the wood is dry. We will purchase two 3200 Garn boilers to replace the ones in use in Thorne Bay, so the two GarnPacs already in place can be taken to the smaller sites, Whale Pass and Hollis. Two 2200 Garn boilers will be purchased for Naukati. The supplier will be Alaska Heat Technologies, Tok, AK. The district has purchased boilers from this company in the past for Kasaan, Thorne Bay, and Coffman Cove Schools. Other equipment will include electrical and plumbing supplies and BTU meters. We will not need equipment to dig trenches for underground piping as the district has recently purchased a Bobcat for such projects. The district also now owns a fork-lift for moving cord wood around in Thorne Bay. 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. The site maintenance supervisor will report weekly to the superintendent on the status of the project. There will also be a monthly report to the school board. Summaries can be sent to the AEA on a weekly or monthly basis as needed. Maintenance work logs and work orders will be maintained at the District Office. A monthly financial report is required for the School Board on all projects, along with a grant report. These reports detail expenditures and progress for the board and the superintendent. All School Board documents are kept at the Southeast Island School District Office and are available on the SISD website, www.sisd.org. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 11 of 41 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. Potential Problems Solutions/strategies Barges delivering equipment do not make scheduled runs Remind maintenance to plan ahead, anticipate delays and adjust as soon as possible to stick to the timeline Unforeseen price overages due to increased fuel, metal prices, or freight charges 15% overrun factored into the budget Delays in manufacture of the Garn boilers Notify the dealers early of deadlines for installation of boilers, order barge-delivered items early, correspond with Garn Dealer regularly, order from Seattle for southeast project if it was unavailable in Alaska Wet wood Plan ahead to cut enough wood to start drying well in advance of anticipated operation. No blasting is required for site preparation for the wood storage sheds, so these can be built quickly before the rest of the project is underway Trouble getting wood If we cannot get enough wood locally for each site, we may end up transporting wood from Thorne Bay to other sites. Fortunately, the district owns the trucks suitable for this kind of transport. One solution would be to encourage investment in a wood splitter, similar to the high volume machine used by an individual in Thorne Bay. Another solution would be to buy bio bricks at sites where we are having trouble getting someone to supply wood. We anticipate Viking Lumber in Klawock to be producing them in 2015. 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. Lucienne Smith serves as the District’s Business Manager on a contractual basis. She is responsible for performing all accounting in the district including all special revenue funds (Grants). She has served in that capacity since 2009, and the District has received unqualified opinion clean audits from 2010 to date. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 12 of 41 7/2/14 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. The accounting software the District uses is Black Mountain. It is a fund accounting software that records all transactions in line with Fund Accounting. Only staff working in the business departments who have user id’s and passwords have access to the system. 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. Standard Operating Procedures are in place for all purchasing, accounts payable, and cash disbursements. As those procedures are followed, internal and external controls are in place to insure only expenses that are allowable and approved will be recorded in the AEA fund. 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 potential wood resources available on Prince of Wales Island are approximately 20-40 MMBF (million board feet) per year. One seven-year timber sale coming up is 102 MMBF. The Timber Management Assistant at the Thorne Bay Ranger District reports that out of this type of sale, 15- 20% is “utility volume,” and can be used for firewood or cull logs. He stated that there are about 127 years of volume in our area of the Tongass. In addition to National Forest land, there are also other sources of wood available, along with waste wood from the local sawmills. The POW Biofuels Coop is currently scheduled to be in production in the year 2015 -2016. They will be producing a variety of products (pellets and bio-bricks). Since the GARN systems can also run with bio-bricks, this may be another option that could be lower cost than cordwood. Feasibility studies have been done for Naukati and Thorne Bay and findings indicate that there is plenty of biomass available. In Naukati, the district has bought and stored 30 cords of wood in anticipation of the boiler being installed. In Thorne Bay there are now about 100 cords of drying wood which should be enough to last for almost the whole 2014-15 school year. Pros: The school district is located in the Tongass National Forest, the largest national forest in the nation. Wood sources are located very close to each school in the project. There is very little private land ownership on Prince of Wales except around the towns, and most of the land is US Forest Service. Due to the fact one can obtain a firewood cutting permit for $5.00, using this resource is the most sensible. Wood can be stored for a long time, and is a renewable, sustainable resource. Even the ashes can be used in local gardening projects. With four existing boilers (two in Coffman Cove’s Howard Valentine School, and two at Thorne Bay School), we Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 13 of 41 7/2/14 confirm that firewood is available at a reasonable cost. One business has bought equipment for cutting and splitting wood and has a log deck with enough wood for ten years sitting within one mile of the largest school, Thorne Bay. Cons: This system will take up more space than a diesel system and wood needs to be kept dry for maximum efficiency. It requires more labor than turning up a thermostat. Item Pros Cons Continue Using Diesel Fuel – don’t supplement with wood fired boilers. Requires no changes to existing heating system at the schools. High fuel prices, money leaves community, no local job created, fluctuating diesel prices create no stability for estimating budgets, no economic development – families leave communities, schools close. Wood source Locally available - Sawmills, slash piles, thinning projects, wood sources located on Prince of Wales, in and near school sites. Renewable, nontoxic, energy source. After years and years of use, easy access to the wood sources could necessitate farther travel and increase the cost. New wood products developed A wood pellet industry has been under development on Prince of Wales Island and they will be able to produce bio-bricks to be used in the Garn Boilers. A new business could be created in towns with schools delivering the product to homes and the school. Allows for partnership development among entities in Southeast Alaska and groups on Prince of Wales Island. Transportation costs to get pellets to the school site might increase the fuel costs and reduce savings to school district. Priorities for product use may not favor rural and remote towns. Amount available 270 MBF available Renewable resources with potential to use species not considered marketable such as Alder and second growth thinning slash. A business established recently is less than one mile from Thorne Bay School, and has 10 years worth of firewood on its log deck. Some distant areas of harvest could be more than 50 miles from school site. Might require and investment into new equipment to harvest new sources of wood biomass, (thinning for example). Wood contracts Local people willing to bid contracts, creating jobs, and keeping families and children in community to keep small schools open. With local people supplying wood it is easy to contact them and follow up on contracts. Competitive process, might be awarded to an outside bidder who will raise the price of wood and decrease school district savings. Requires deadline dates in the wood supplier’s contract and follow up by maintenance personnel to ensure supply. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 14 of 41 7/2/14 Wood condition Lots of dead standing wood, and thinning slash, located close to school sites. Large amounts available very close to all four school sites. Only requires short drying time for use of product. Has to be stored out of the weather, ahead of time in order to reduce moisture content. Green wood will need to be stored for a longer period than dry wood, taking up more space. 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 Land from which wood will be harvested is largely owned by the US Forest Service. There are no restrictions. A firewood permit can be acquired for $5.00 per cord. As mentioned above, Stan McCoy, Timber Management Assistant at the Thorne Bay Ranger District, reports that there are 23 MBF total “utility volume” in close proximity to our schools. This is 127 years worth of biomass available. The species are yellow cedar (Callitropsis Nootkatensis), Sitka spruce (Picea Sitchensis), alder (Alnus Rubra) and hemlock (Tsuga Heterophylla). The wood fired boilers at our Coffman Cove site have been using a mix of these species and find that the Garns perform very well. 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. At present the Thorne Bay School has two Garn boilers and two large covered wood storage sheds. This system was installed in 2012 and has proven to be too small for the scope of the heating area. As well as heating the school, we anticipate heating a hydroponic greenhouse that is attached to the wood storage area and is currently under construction. Thorne Bay has in the past operated on diesel furnaces. They were installed in the early 90’s and take constant maintenance. In contrast, the Thorne Bay GARN systems have taken very little maintenance so far and are easy to run. Whale Pass and Hollis Schools are currently using diesel forced-air heating systems. They are about 40 years old and have about 65% efficiency. Whale Pass has one furnace that was shut down about eight years ago due to safety, and the district installed a Toyo stove in its place. It is not sufficient for the space and the heating issue needs to be addressed very soon. Our maintenance person for Hollis School calls their system “scary.” It takes lots of time to maintain and, like Whale Pass, needs to be replaced as soon as possible. These schools have almost identical footprints. Two teacher housing units on the ‘campus’ of Hollis School will be connected to the wood boiler system. In Whale Pass, a teacher housing unit, just built last year, will be connected. Greenhouses are planned for both sites and Southeast Island School District will provide all funding for these structures. Naukati School is currently using 100% waste generator heat, but that will be eliminated very soon when the power lines are connected to town and eliminate the need for a community generator. It will go back to diesel at that moment. The school has diesel boilers with heating capacity for 10,000 square feet. They are about seven years old and have a 75% or less efficiency. Site Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 15 of 41 7/2/14 installation for the greenhouse that will also benefit from the boiler’s heat for this school has already begun. 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. Adding supplemental wood fired boilers in our communities will have little impact on the existing energy resource. Harvesting this renewable resource actually allows more light into the forest, and other trees will grow to replace the removed trees. Cutting wood for the boilers will provide opportunity for locals, in turn, helping the local economy. Unemployment rate on the island varies seasonally and in the winter of 2013 was as high as 17%, while in the summer it fell to 10.6%. In 2014 it was 19.1% in January and in July fell to 12.4%. (ycharts.com/indicators/prince of wales) Installing the boilers in several communities will provide a source of income to individuals willing to work. In 2013 a high school senior got his business license and started his own small enterprise selling wood to the school district in Thorne Bay. The district strives to encourage student participation and community involvement in a variety of projects. This is just one example. Firewood availability far exceeds demand. We are paying the going rate or less, and have not caused firewood inflation for other users. A Thorne Bay business producing large amounts of cordwood has increased availability for all our sites. There is far more wood being produced than we can buy. We are a major supporter of local efforts to build a pellet plant on the island. We can easily convert to using bio bricks and the district may be a major reason for their economic viability as they seek funding. One impact on existing energy resources is that the district will not be buying diesel fuel, freeing up funds that can be spent more directly on student learning. Since the wood boiler has been installed and running in Thorne Bay, we are now seeing the significant decrease in fuel oil consumption. From 2013-2014 the decrease in gallons of fuel used was 8,456 gallons. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The existing energy resource, diesel fuel, is currently used to heat the school. The price varies between communities and is currently about $4.07 per gallon. This price has risen historically during the winter months, and according to the worksheet of fuel prices on the AEA website, may rise to $4.24 in 2015. The average over the last three years’ usage for the four school sites was 30,993 gallons annually or $126,142.00 at $4.07. With a jump to $4.24 per gallon, total amount spent on fuel would climb to $131,410.00. The displacement of fuel oil when our systems switch to wood fired boilers will have little effect on the four towns on Prince of Wales. Fuel is currently trucked from Craig, while cordwood will be bought from individuals, benefiting the local economy of each community. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 16 of 41 7/2/14 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 Thorne Bay: The two GarnPac boilers currently installed at Thorne Bay School will move to Whale Pass and Hollis Schools where they will be more appropriate for the size of the buildings. Thorne Bay School will install two 3200 Garn boilers which will adequately take care of heating needs of the school, greenhouse and teacher housing unit. The teacher housing unit was recently purchased by the school district. All land involved in the Thorne Bay project is now owned by the school district. We anticipate being able to supply 100% of our heating needs. The 3200 model Garn is rated to produce 700,000 BTUh based on burning white oak. Our needs in Thorne Bay are, at this point, a total of 458,783 BTUh. In this project, we will be adding the greenhouse and the teacher house to the hydronic heating system. We will be burning softer wood species and are allowing for the likelihood of a higher moisture content than listed on the Garn website, due to our climate in southeast Alaska. These boilers are rated at 85% efficiency. The existing diesel furnaces/boilers will be kept as back-up. Whale Pass and Hollis Schools: At Whale Pass and Hollis Schools, again, all land in the project is owned by the district. The district plans to replace windows in the schools for greater energy savings. This will be part of the in-kind investment in the project and will enhance the insulation of the buildings. Both of these schools have a teacher housing unit in very close proximity, allowing easy piping for the heat to be transferred. These school sites will be using the 2200 Garn boilers and their output is 370,000BTUh. The superintendent commits to building a small greenhouse at these sites too as part of our in-kind contribution. Again, we are including a housing unit at each site and are accounting for the fact the figures are using a different species of wood than we have available. Naukati School: Southeast Island School District owns all the land whereon the school itself, teacher housing, and the greenhouse are situated. Naukati School currently requires 396,890 btuh and we will be installing two 2000 model Garns rated to produce 325,000BTUh each. Again adding considerable square footage to the space heated by the system will still allow for an efficient system, (rated at 88.4% efficiency), to cover even the coldest winter months. Naukati School is well insulated and is recent construction (2008). According to our local expert in the GARN systems, Jonathan Fitzpatrick, sometimes a problem can occur because the wood boilers have a larger temperature range than an oil furnace; 140-180 degrees, rather than 160-180. What he has done in the past to remedy this situation is install an adjustable aquastat on boilers so they can be adjusted down to the 140-160 degree range. Since temperatures in southeast are not extreme, our existing systems have run fine at the 140-160 degree range, except for a couple of weeks out of the year. When temperatures are hovering at zero he has turned the heat up and thus solved the problem. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 17 of 41 7/2/14 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. Land ownership in all locations is solely the school district. There are no access issues. 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 List of Permits: The only permit that is required would be the Fire Marshall’s approval for a wood fired boiler at the school locations of Whale Pass, Hollis and Naukati. Permits are already in place at Thorne Bay School. Southeast Island School District has site control. Timeline: Once the project has been funded and the mechanical drawings drafted, we would proceed with the application for the Fire Marshall’s approval. The time line for Fire Marshall’s approval and permit is approximately 4 weeks after submittal of conceptual design. Barriers: A delay in the Fire Marshall granting approval of the project would cause a delay in the installation of the project. 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: Each of the school sites have already been disturbed and filled with shot rock, and contain no threatened or endangered species at the locations. Habitat Issues: Each of the school sites have already been disturbed and filled with shot rock, and there are no habitat issues that would need to be addressed. Wetlands and other protected areas: None of the schools sites are located in a wetland or other protected area, as the area was filled with shot rock prior to school construction. Archaeological or Historical resources: None of the project areas are located where archaeological, cultural, or historical resources are located. The Alaska State Historic Preservation Office evaluated all sites and found no historic properties affected. Land Development Constraints: There are no land constraint issues at any of the sites. The School District owns the land surrounding the possible location of the wood fired boilers and there is plenty of land surrounding the areas. Telecommunications interference: There are no: Satellite dishes, phone lines, cell towers or cables in the areas selected for the wood fired boilers to interfere with telecommunications. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 18 of 41 7/2/14 Aviation considerations: The schools are located away from the seashore. All our aviation is conducted by float planes and the wood fired boilers would be located in an area that would not interfere with floatplane operations. Visual and Aesthetics Impacts: The location selected for the wood fired boilers will have a minimal affect on the surrounding areas as the boilers must be contained inside a building and fenced to keep people away from the area. One of the outer fences could become part of another project such as a project that could enhance the area like community garden or a community green house. Identify and discuss other potential barriers: Other barriers could include placing the project in an earthquake or tsunami potentials zone. Neither of these events would affect the students at the schools. The schools are located on some of the highest locations in town. All are in isolated bays and away from main channels and are not in high concern areas for tsunamis. Most of our schools are the collection point for community members when there is a threat. The wood fired boilers are self contained in their own buildings away from the main school, piping is underground and plumbed directly to the boiler room, where students do not have access, so broken pipes are not an issue in the event of an earthquake. Garn boilers have a high efficiency and low emissions. Emissions will not be a problem as boilers similar to Garn Boilers have met the EPA clean air requirements. 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 19 of 41 7/2/14 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 Total anticipated project cost is $872,635.00. Requested grant funding is $832,635.00 Thorne  Bay  School,  greenhouse,  gym,  teacher  housing  unit     New  System/Project  Development  Costs  for  Cordwood  System     Fuel  Consumption  gallons  per   year     19,355  gallons  (average  of  2011-­‐2013)   Anticipated  fuel  to  heat  teacher   housing  per  year   900  gallons   Required  BTU’s  per  hour    273,783  –  school   95,000  –greenhouse   90,000  -­‐  teacher  house   total  –  458,783  BTUh   Cordwood  Boiler     Btu’s  combined  and  stored  per   hour   2  Garn  Boilers  WHS  3200  -­‐     1,850,000  combined  BTU’s  per  hour     2,544,000  BTU’s  Stored                                                                                                      Building  and  equipment  estimates     Wood  Fuel  storage  and  wood   boiler  buildings     No  cost  –  already  constructed     Water  treatment  devices  $1,050.00   Boilers   (AK  Heat  Technologies)   ($41,995each)   $83,990.00   Shipping  for  boilers     (Samson  Tug  and  Barge)   $12,000.00   Plumbing  and  connections    $33,000.00  plumbing  and  connections     Electrical  installation  $10,000.00   Engineering    $20,000.00   Contractual  or  rental  heavy   equipment  for  installation   $4000.00   Installation  labor  charges     Building  construction  and   boiler  installation     $45,000.00     Sub  total  cost    $209,040.00   Contingency  cost  overrun     15%   $31,356.00   Grand  Total    $240,396.00   Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 20 of 41 7/2/14   Naukati  School     New  System/Project  Development  Costs  for  Cordwood  System       Fuel  Consumption  gallons   per  year     7,868  gallons  (2010  figure;  now  using  waste  heat  system   which  will  come  to  an  end  by  the  end  of  this  year)   Anticipated  fuel  to  heat   adjacent  housing  unit  per   year   900  gallons   Required  BTU’s  per  hour    396,890   Cordwood  Boiler     Btu’s  combined  and  stored   per  hour   2  Garn  Boilers  WHS  2000  -­‐     650,000  combined  BTU’s  per  hour     2,544,000  BTU’s  Stored                                                                                                      Building  and  equipment  estimates     Engineering  $50,000.00   Boiler  buildings    $20,000.00     Boilers   (AK  Heat  Technologies)   ($16,995  each)   $33,990.00   Shipping  for  boilers     (Samson  Tug  and  Barge)   $12,000.00   Plumbing  and  connections   (Naukati  already  has  BTU   meter)   $30,000.00  plumbing  and  connections     Electrical  installation  $10,000.00   Travel/per  diem  for   Engineers     0   Contractual/rental  heavy   equipment   $4000.00   Installation  labor  charges       $22,000.00   Sub  total  cost    $181,990.00   Contingency  cost  overrun     15%   $27,298.00   Grand  Total    $209,289.00   Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 21 of 41 7/2/14   Whale  Pass  School     New  System/Project  Development  Costs  for  Cordwood  System     Fuel  Consumption  gallons   per  year     Anticipated  for  housing   989  gallons     (2  year  average,  2012-­‐2013;  school  closed  in  2011)   495  gallons  –  housing   total  –  1,484  gallons   Required  BTU’s  per  hour  for   school  and  housing       85,350  BTUh   Cordwood  Boiler     Btu’s  combined  and  stored   per  hour   1  GarnPac  Boiler  unit  WHS  2200  -­‐     370,000  BTU’s  per  hour     375,000  BTU’s  Stored                                                                                                      Building  and  equipment  estimates     Engineering  $35,000.00   Wood  fuel  storage  building    Already  built   Transport  of  Boiler  from   Thorne  Bay  to  Whale  Pass   (Samson  Tug  and  Barge)   $5,000.00     Plumbing  and  connections    $50,000.00   Electrical  installation  $10,000.00   Travel/per  diem  for   Engineers     0   Contractual  heavy   equipment   0   Installation  labor  charges     Building  construction  and   boiler  installation     $60,000.00   Sub  total  cost    $160,000.00   Contingency  cost  overrun     15%   $24,000.00   Grand  Total    $184,000.00   Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 22 of 41 7/2/14   Hollis  School     New  System/Project  Development  Costs  for  Cordwood  System     Fuel  Consumption  gallons   per  year  -­‐  school   Anticipated  for  2  adjacent   housing  units   1,386  gallons  (annual  average  of  2012-­‐  2014)     900  gallons  (housing)   total  –  2,286   Required  BTU’s  per  hour  for   school  and  housing   116,000   Cordwood  Boiler     BTU’s  combined  and  stored   per  hour   1  GarnPac  Boiler  WHS  2200  -­‐     370,000  BTU’s  per  hour     375,000  BTU’s  Stored                                                                                                    Building  and  equipment  estimates     Engineering  $35,000.00   Wood  fuel  storage  building    $28,000.00     Transport  of  Boiler  from   Thorne  Bay  to  Hollis   (Samson  Tug  and  Barge)   $5000.00   Plumbing  and  connections    $50,000.00   Electrical  Installation  $10,000.00   Contractual  heavy   equipment   0   Installation  labor  charges     Building  construction  and   boiler  installation     $45,000.00   Sub  total  cost    $173,000.00   Contingency  cost  overrun     15%   $26,850.00   Grand  Total    $198,950.00         Matching funds: • Naukati wood storage area built and completed $24,708.00 • Naukati – 30 cords of wood stacked and drying $6,000.00 • Thorne Bay – 100 cords of wood stacked and dry $20,000.00 • Whale Pass – wood storage area constructed 2012 • Hollis – new double pane windows will be installed $8,500.00 • Whale Pass - new double pane windows will be installed $8,500.00 • Total - $67,708.00 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 23 of 41 7/2/14 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.) Operating and maintenance costs will be funded by the school district. We do not intend to construct new facilities. Dan Parent, Wood Utilization Specialist, from the Juneau Economic Development Council, in his feasibility study on the Coffman Cove School in 2008 found that “the primary operating cost of a cordwood boiler, other than the cost of fuel, is labor”. We anticipate the same to be true for Thorne Bay, Hollis, Whale Pass, and Naukati Schools. Labor is required to move wood from its storage area to the boiler building, to fire the boiler, clean the boiler, and dispose of the resulting ash. The boiler system could be operated every day for 210 days (30 weeks) per year between mid- September and mid-April. Daily operation of fueling the boiler will be done by residents of the teacher housing units that will also be heated by the boiler, greatly reducing our labor costs. Maintenance will undoubtedly be less that for the existing diesel systems, three of which are over twenty years old. In school year 2013-2014 maintenance costs for the Thorne Bay boilers was $850.00 for two pumps seals and the labor to install them. The following chart from the feasibility study outlines labor for High Efficiency Low Emissions (HELE) Garn products. This one is for the Coffman Cove School, which is exactly the same size as Naukati School. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 24 of 41 7/2/14 Other operating costs based on a report projected for Coffman Cove School by Dan Parrent: Dan found that the general costs include replacing items such as fire brick, door gaskets, water treatment chemicals, etc. He used a flat rate of $1,000 per boiler per year. The non- fuel OM&R cost estimates are summarized in Table 6-3. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 25 of 41 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 Identification of Customer Southeast Island School District will be the customer for the wood fired boilers. Heat Purchase/sales: N/A The Purchase price of project and rate of return The total project will cost $832,635.00. See tables below for the breakdown of the cost per site and rate of return. Please note the first two sites, Thorne Bay and Naukati do not include fuel costs for heating the teacher housing units. We did not have access to those records since the bills have been paid by the occupants. If we had included those, the rate of payback would have been fewer years for Thorne Bay and Naukati. Back-up documentation of fuel bills is attached to this application. Since Naukati has been on a waste heat system, we do not have fuel receipts and price per gallon is a 2 year average 2013- 2014 from the chart on the AEA website. Proposed Rate of Return: Thorne Bay Simple Payback Period Analysis for GARN Cordwood Boilers Cost of fuel oil $4.07 per gallon – heating all schools buildings but does not include teacher housing unit $82,438.00 per year (3 year average 2011-2013– 19,355 gallons per year) plus 900 gal. additional fuel to heat housing unit 20,255 gal. 160 cords @ $200/cord anticipated to heat additional structures $32,000.00 Annual Fuels Savings amount $50,438.00 Total Investment costs $240,396.00 Simple payback in years 4.7 years Even though Thorne Bay School’s boilers have not carried the whole load of heating both the gym and the school, our diesel consumption dropped from 19,937 gallons in 2013 to 11,481 gallons in 2014; a difference of 8,456 gallons. Starting in January, heat also went to the greenhouse and by mid February, we had a full crop of lettuce that has been used in the school salad bar and has been sold around the island at several locations. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 26 of 41 7/2/14 Proposed Rate of Return: Naukati School Simple Payback Period Analysis for GARN Cordwood Boilers Cost of fuel oil $4.21 per gallon – heating of school, not including teacher housing unit $36,913.00 (last year diesel fuel was used – 2010 -7,868 gallons) 900 gal. anticipated for housing unit total – 8768 gal. 60 cords @ $200/cord anticipated to heat additional structures $12,000.00 Annual Fuels Savings amount $24,913.00 Total Investment costs $209,289.00 Simple payback in years 8 years Proposed Rate of Return: Whale Pass School Simple Payback Period Analysis for GARN Cordwood Boilers Cost of fuel oil $4.06 per gallon - school and housing unit $6,025 (2 year average – 1,484 gallons) 11 cords @ $200/cord anticipated to heat school and additional structures $2,200.00 Annual Fuels Savings amount $3,825.00 Total Investment costs $184,000.00 Simple payback in years 48 years Whale Pass School will need a replacement furnace soon even in the event this grant is not awarded. The heating system is around 25 years old and nearing the end of its life. We feel it is enormously more sensible to replace the system with wood rather than continue with fossil fuel. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 27 of 41 7/2/14 Proposed Rate of Return: Hollis School Simple Payback Period Analysis for GARN Cordwood Boilers Cost of fuel oil $4.09 per gallon – school and teacher housing unit $9,350 - 2286 gallons per year 12 cords @ $200/cord anticipated to heat additional structures $2400.00 Annual Fuels Savings amount $6,950.00 Total Investment costs $198,950.00 Simple payback in years 28 years Hollis School will need to have its furnace replaced in the event we are not awarded the grant. Cost of a replacement furnace is $30,000.00. Thus, the payback in years needs to be considered compared to installing another diesel system. Both Hollis and Whale Pass Schools have held at an enrollment of about 12 students, however this year Hollis has jumped to 19 and now has two certified teachers. The significant road improvements to Whale Pass are expected to boost student enrollment, as has happened in all our sites with paved roads. Even in the event that these small schools were to fall below 10 students at some point in the future, and therefore have to close due to lack of state funding, the Garn Pac boilers are easily portable and could be moved to another area of need. 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. 23 million board feet of “utility volume,” (biomass left after mill quality timber has been hauled off the land and is available for firewood, pellets or other sales). This is from Stan McCoy, Timber Sales Manager, Thorne Bay Ranger District, US Forest Service. Stan says there is virtually a limitless supply of wood for this purpose. Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 28 of 41 7/2/14 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 Thorne  Bay  –  4  diesel  boilers,  2  Garn  Pacs   Whale  Pass  School  –  3  diesel  furnaces   Hollis  School  –  4  diesel  furnaces   Naukati  School  –  2  diesel  boilers ii. Rated capacity of generators/boilers/other Thorne  Bay  –  458,000  BTU’s       Whale  Pass  School  –  85,350  BTU’s   Hollis  School  –    116,000  BTU’s   Naukati  School  –  396,890  BTU’s iii. Generator/boilers/other type N/A iv. Age of generators/boilers/other Thorne  Bay  School  –  4  diesel  boilers,  26  yrs  old;  75%   efficiency   Whale  Pass  School    -­‐  forced  air  diesel  furnace,  30  yrs.   old;  65%  efficiency   Hollis  School  -­‐  forced  air  diesel  furnace,  30  yrs.  old;  65%   efficiency   Naukati  School  -­‐  2  diesel  boilers,  8  yrs.  old;  75%   efficiency v. Efficiency of generators/boilers/other See above b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Thorne  Bay  -­‐  $15,000   Whale  Pass  School  –  $8,000   Hollis  School  –  $8,000   Naukati  School  -­‐  $5,000 ii. Annual O&M cost for non-labor Included  in  above  costs 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] This  section  not  applicable. ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends 1  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.     Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 29 of 41 7/2/14 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] Thorne  Bay  School  –  average  2011-­‐2013  19,355  gallons   Whale  Pass  School  –  average  2011-­‐2013  989  gallons   Hollis  School  –  average  2012-­‐2014  –  1,386  gallons   Naukati  School  –  2010  last  time  diesel  was  used  –  7868  gallons 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] Thorne  Bay  -­‐160  cords,  Whale  Pass  School  –  projected  11   cords,  Hollis  School  –  projected  12  cords,  Naukati  School  –   projected-­‐  60  cords   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  –  100%   b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] N/A   ii. Heat [MMBtu] 1,480,000  BTU’s   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] Thorne  Bay:  160  cords   Whale  Pass:  11  cords   Hollis:  12  cords   Naukati:  60  cords   iv. Other N/A Project Cost a) Total capital cost of new system $872,635.00   b) Development cost N/A   c) Annual O&M cost of new system $4,000.00   d) Annual fuel cost (All  wood)  $48,600.00   Project Benefits a) Amount of fuel displaced for Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 30 of 41 7/2/14 i. Electricity N/A ii. Heat Thorne  Bay  –  20,255  gallons  (all  figures  include  school  and  housing  units)   Whale  Pass  School  –  1,484  gallons   Hollis  School  –  2,286  gallons   Naukati  School  –  8,768  gallons   Total  –  32,793  gallons iii. Transportation N/A b) Current price of displaced fuel Thorne  Bay  -­‐  @$4.07  per  gallon;  $78,775.00   Whale  Pass  School  –  @  $4.06  per  gallon  $6,025.00   Hollis  School  –  @  $4.09  per  gallon  $9,350.00   Naukati  School  –  @  $4.21  per  gallon  $33,124.00   Total  -­‐  $127,273.00     c) Other economic benefits Fuel  costs  saved  in  teacher  housing  units  adjacent  to   Thorne  Bay  School,  Whale  Pass  School  and  Hollis  School.     Greenhouses,  using  heat  from  boilers,  produce  vegetables   year  round.  Heat  will  also  run  in  cold  months  to  chicken   coops,  rabbit  hutches.    Local  jobs  created. d) Alaska public benefits Sustainable,  efficient  systems  put  in  place.    Opportunities   for  wood  cutting  enterprises  for  individuals  to  sell  to  the   school  district.    Students  exposed  to  living  with  a   sustainable,  non-­‐polluting  system.    Extended  benefits  of   heating  attached  greenhouses,  hugely  impacting  quality   of  life  in  this  remote  area  where  vegetables  come  by   barge  and  are  weeks  in  the  shipping  process  before  they   get  to  the  dinner  table.    (The  only  community  with  a   grocery  store  is  Thorne  Bay.)  Food  grown  will  be  used  in   the  school  lunch  program  and  excesses  can  be  marketed   to  local  farmer’s  markets.    The  district  has  also  now   bought  a  small  café  (the  only  restaurant  in  town)  and   produce  will  be  used  on  the  regular  menu.    Plans  include   heating  chicken  coops  and  rabbit  hutches  in  the  coldest   months.    These  will  also  be  student  run  enterprises.    Using   the  wood  fired  boilers  will  improve  the  air  quality   compared  to  burning  diesel. Heat Purchase/Sales Price a) Price for heat purchase/sale N/A Project Analysis a) Basic Economic Analysis Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 31 of 41 7/2/14 Project benefit/cost ratio Payback (years) Thorne  Bay:  5   Whale  Pass  and  Hollis:  over  20  years   Naukati:  10  years       These  figures  do  not  take  into  account  the  savings  of  the  teacher  housing   units  at  the  sites,  providing  an  unseen  benefit,  since  the  school  district  does   not  pay  the  teacher’s  fuel  bills.    The  other  unseen  benefits  will  be  heating   the  greenhouses  that  will  produce  vegetables,  fruit,  flowers  and  herbs,  some   to  be  used  by  the  students  in  school  and  some  to  be  sold  to  local  markets.     This  has  already  been  working  in  Thorne  Bay  with  the  production  of  lettuce   and  herbs.    Eggs  and  rabbits  will  be  sold  and  manure  will  go  to  the  outdoor   raised  bed  gardens. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 32 of 41 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 Thorne Bay School, teacher housing unit, greenhouse • Type or primary usage of the building school, greenhouse and teacher housing • Location 1010 Sandy Beach Road, Thorne Bay, AK 99919 • Hours of operation 7:45 am – 4:00 pm with many evenings for open gym, basketball practice, Girls Scouts, etc. • Single structure or multiple units three structures • Total square footage school - 41,000 sq. ft.; house - 3000 sq. ft.; greenhouse – 800 sq.ft. Total: 44,800 sq. ft. • Electrical consumption per year 278,854 KWH (3 year average) • Heating oil/fuel consumption per year 20,255 gallons (3 year average) • Average number of occupants 120 • Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. An energy audit has been preformed on the Thorne Bay School gym in 2011. • Have building thermal energy efficiency upgrades been completed? No o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings $50,438.00 • 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. • Building name Hollis School, 2 teacher housing units, greenhouse • Type or primary usage of the building school, greenhouse and teacher housing • Location 6488 Klawock Hwy. Hollis, AK 99928 • Hours of operation Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 33 of 41 7/2/14 7:45 am – 4:00 pm with many evenings for open gym, basketball practice, Girls Scouts, etc. • Single structure or multiple units three structures • Total square footage school – 4,000 sq. ft.; house - 3000 sq. ft.; greenhouse – 800 sq.ft. Total: 44,800 sq. ft. • Electrical consumption per year 29,812 KWH (3 year average) • Heating oil/fuel consumption per year 2,286 (3 year average) • Average number of occupants 26 • Has an energy audit been performed? No When? Please provide a copy of the energy audit, if applicable. • Have building thermal energy efficiency upgrades been completed? No o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings $6,950.00 • 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. • Building name Naukati School, teacher housing unit, greenhouse • Type or primary usage of the building school, greenhouse and teacher housing • Location 100 Heather Street, Naukati, AK 99950 • Hours of operation 7:45 am – 4:00 pm with many evenings for open gym, basketball practice, Girls Scouts, etc. • Single structure or multiple units three structures • Total square footage school - 10,000 sq. ft.; house - 3000 sq. ft.; greenhouse – 800 sq.ft. Total: 44,800 sq. ft. • Electrical consumption per year 64,120 KWH (3 year average) • Heating oil/fuel consumption per year 7,867 gallons per year • Average number of occupants 35 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 34 of 41 7/2/14 • Has an energy audit been performed? No When? Please provide a copy of the energy audit, if applicable. • Have building thermal energy efficiency upgrades been completed? N/A construction 2007 o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings $24,913.00 • 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. • Building name Whale Pass School, teacher housing unit, greenhouse • Type or primary usage of the building school, greenhouse and teacher housing • Location 126 Bayview Rd. Whale Pass, AK 99950 • Hours of operation 7:45 am – 4:00 pm with many evenings for open gym, basketball practice, Girls Scouts, etc. • Single structure or multiple units three structures • Total square footage school - 6000 sq. ft.; house - 3000 sq. ft.; greenhouse – 800 sq.ft. Total: 44,800 sq. ft. • Electrical consumption per year 19,378 KWH (two year average) • Heating oil/fuel consumption per year 1,484 gallons (two year average) • Average number of occupants 25 • Has an energy audit been performed? No When? Please provide a copy of the energy audit, if applicable. • Have building thermal energy efficiency upgrades been completed? No o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings $3,825.00 • 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 35 of 41 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 With heating fuel prices on Prince of Wales Island ranging from $3.98-$5.00 per gallon in the last two school years, energy costs make up a considerable part of the school district budget. Listed below are the annual fuel oil displacement in gallons and dollars for the four sites over the last few school years. Naukati is broken out separately because they have been using a heat exchanger. This system is about to sunset because the whole community is connecting to electricity, making it necessary to revert back to the diesel heating system. 2010 Naukati School – (2010 is the last time the school was using diesel) 7,867 gallons @ $4.95 per gallon; $38,942.00 2013 Thorne Bay School and gym – 19,937 gallons @$4.04 per gallon; $80,545.00 Whale Pass School – 1,037 gallons @ $4.27 per gallon; $4,428.00 Hollis School – 1,255 gallons @ $4.03 per gallon; $5,058.00 2014 Thorne Bay School and gym – 11,481 gallons @$4.07 per gallon; $46,727.67 (Significant decrease due to the Garn proto- types in operation.) Whale Pass School – 693 gallons @ $4.05 per gallon; $2,807.00 Hollis School – 1343 gallons@ $4.09 per gallon; $5,493.00 Factors to consider in comparing this data include the fact that there were fewer degree days in the 2013-14 school year and that there were more students and staff at the Hollis School, possibly reducing the need for a higher thermostat setting. Thorne Bay used significantly less fuel in FY14 due to the fact the wood fired boiler was running on a regular basis. In Thorne Bay, the district bought 82.5 cords of wood in 2013-14 at $200.00 per cord for a total of $17,390. We now have in storage about 100 cords of wood. It is all under cover and we are burning dry wood. The district also paid one adult employee and two students to keep the boilers stoked. Switching to the wood fired boilers will create an annual savings of $86,126.00. The money saved can remain in the general fund and be spent on textbooks, art and music activities, or personnel costs, to name a few possibilities. These activities or expenditures have much more direct impact on the students’ learning. The potential annual fuel displacement of 29,735 gallons over 25 years Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 36 of 41 7/2/14 could be in excess of 740,000, gallons or two million nine hundred ninety-six thousand dollars ($2,096,000.00) over the life time of the boiler based on $4 a gallon for diesel fuel. Each year the school district struggles to meet the required 70% allotment of its budget to instruction. Part of the reason is due to energy costs, and this same challenge is shared by many districts in rural Alaska. The savings over future years will greatly impact the ability of the district to deliver a quality education to its students. As a school district we will not receive annual incentives and do not anticipate any additional revenue streams. Other public benefits of the project include providing work in the cutting, hauling, and stacking of wood thereby providing a means of support for additional individuals on the island. Students will be involved in the project as much as possible and they may be the ones who stack wood, for example. They will also become the main operators of the greenhouses attached to the schools and heated by the boilers. Students have also been able to fund raise to pay for travel to sporting events by loading boilers or selling firewood. In addition to the vocational experience this venture will provide, the benefits of eating healthier food are tremendous. Any surplus produce from the greenhouses will be put back into the school lunch program or could be sold at farmer’s markets. As the students are exposed to this innovative means of supplying energy, their own choices may change when, as adults, they make choices of living with dependence on oil or, the alternative; relying on a completely renewable resource. Another benefit is improvement of the air quality because diesel boilers emit fewer pollutants than the old oil furnaces. Here on Prince of Wales Island, wood is abundant, and in fact, this island supplies 90% of the timber in the entire Tongass National Forest. 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 project is sustainable in our region of the Tongass for many reasons. The amount of available biomass is, as stated before, almost limitless. With the infrastructure already developed within the school district, maintenance will be similar in all sites due to the use of Garn products in each one. The district already has a skilled individual as its maintenance supervisor, Jonathan Fitzpatrick, who has successfully implemented the project in Coffman Cove and who has been very instrumental in the planning of this project. Maintenance is anticipated to be significantly less costly than the upkeep of old diesel furnaces currently in use at all four sites. The school district has its own preventative maintenance schedules in place and budgeted for on a yearly basis. Diesel boiler replacement is due at three out of four sites and the district sincerely hopes to avoid having to install systems reliant on fossil fuels. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 37 of 41 7/2/14 • Issues that could arise would be not enough wood and lack of operators. These issues are unlikely, however, as we already have a proven track record of operating the system in Coffman Cove and Thorne Bay and the pool of operators has been inexhaustible. • Preventative maintenance is the main operational cost for back-up and existing systems. The district intends to keep in place the existing diesel heat systems for back-up. • The district is committed to keeping track of the savings generated by this project and will report back to AEA or any other agency as needed regarding savings and benefits. In the event, the district decides in the future that the cost of cord wood is too much or that it becomes difficult to buy wood from local providers, the systems could also use bio-bricks. Several companies on the island, (Viking Lumber in Klawock, and one private enterprise) are planning to start a pellet/bio-brick mills. 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. In Thorne Bay we received the AEA grant for $178,179 in 2009 and have successfully completed the requirements. We gained excellent experience from its implementation. Our maintenance supervisor, Jonathan Fitzpatrick, now has knowledge of what it takes to be prepared for the projects we are planning. We are aware of each site’s prevailing wind direction, current configuration of heating systems, and are confident the projects will be straightforward. At Thorne Bay, the wood storage area is full of dry wood. The heat exchangers and underground piping have been installed for the new boiler locations. We have implemented a similar project in Coffman Cove, Howard Valentine School involving the Garn products, and another in the village of Kasaan will come on-line this week. The only issue we had in the past in Thorne Bay was green wood. This has been remedied, and we have excellent capacity for storage out of the weather. Whale Pass has a wood storage area as does Naukati. Both have wood drying in them, with more on the way. 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. Support for the projects in the four communities has been evident as seen by the attached letters of support from Advisory Site Councils of our schools at each location and other local partners. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 38 of 41 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 Southeast Island School District has made a name for itself in its commitment to renewable energy. We have wood fired boiler systems in schools in Thorne Bay, Coffman Cove, and Kasaan, and are we are seeking $832,635.00 in grant funds to place boilers at other schools. The intent is to decrease our dependence on fuel oil and use strictly local energy sources. The total anticipated cost of the project is $872,635.00. This amount is down from the last time we submitted the grant application due to the fact we have built more wood storage areas to store up dry wood and get ready for the installation, and the price of the GARN boilers went down a little. The level of experience gained in installation and operations of the systems in Thorne Bay, Kasaan (funding received through a legislative grant) and Coffman Cove, will streamline our work as we approach the new system installation. In Thorne Bay, the district has combined its own resources from general fund with grant funding from AEA (in 2009) and a grant from the Department of Labor (in 2013) to build the current boiler system, wood storage sheds and the greenhouse which is attached to the wood storage shed. In 2013 the school district also purchased a teacher residence, which will soon be connected to the biomass heating system. Southeast Island School District has pledged to commit $40,000 of cash match. Other match already provided follows: Boiler system - 2 Garn Pacs $32,880 - AEA grant Thorne Bay Greenhouse - $19,000.00 Southeast Island School District general fund Thorne Bay Greenhouse hydroponic system, labor, research, and training to install it – $56,175 - grant from Alaska Dept. of Labor Naukati and Kasaan greenhouses - $39,975 Naukati wood storage - $24,708 Whale Pass wood storage - $ 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. The school district is fully aware of the reporting requirements and commits to comply with annual reporting for ten years after the project is completed. We have included in our costs, the required BTU meters. The district already has one in place at the Thorne Bay site. Estimated cost for each meter is $8000.00. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 39 of 41 7/2/14 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 Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Design and feasibility requirements completed 2008 $ $ $ Vendor (engineer) selected and award in place February 2015 Engineering and bid documents completed July 2015 $140,000.00 $20,000.00 $160,000.00 Construction: • Construction of boiler buildings and wood fuel storage building (Hollis) • Boilers from TB moved to other sites • complete construction April 2016 $432,000.00 $10,000.00 $ $442,000.00 Integration and testing May 2016 $ 196,190.00 $ $196,190.00 Decommissioning of old system complete May 2016 $ $ $ Final acceptance, commissioning and start-up complete June 2016 $ $ $ Operation reporting (Every year for 10 years after completion) 2016-2026 $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $20,000.00 $20,000.00 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $778,190.00 $40,000.00 $818,190.00