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HomeMy WebLinkAboutTazlina GrantApplication 8_Heat Final 2014Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Application Page 1 of 29 7/2/2011 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VII 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 is available online at: www.akenergyauthority.org/REFund7.html.  If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant 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 grant 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 is 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 2014-006 Grant Application Page 2 of 29 7/2/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Tazlina Type of Entity: Fiscal Year End Tax ID # 089647056 Tax Status: For-profit Non-profit X Government ( check one) Date of last financial statement audit: Mailing Address PO Box 87, Glennallen, Alaska 99588 Physical Address Mile 110.5 Richardson Highway Telephone 907 822 4375 Fax 907 822 5865 Email prog.mang.tazlina@cvinternet.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Rickey Young Title Tribal Administrator Mailing Address PO Box 87, Glennallen, Alaska 99588 Telephone 907 822 4375 Fax 907 822 5865 Email Prog.mang.tazlina@cvinternet.net 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 X A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 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). Yes or No 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/veep/Grant-Template.pdf. (Any exceptions should be clearly noted and submitted with the application.) Yes 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. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 3 of 29 7/2/2013 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. Wood Boiler for The Native Village of Tazlina. 2.2 Project Location – Mile 110.5 Richardson Highway 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. 62°03’07.02”N 145°25’38.95”W Native Village of Tazlina 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. This project will benefit The Native Village of Tazlina and The Association of Tazlina Residents. 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 I. Reconnaissance X III. Final Design and Permitting II. Feasibility and Conceptual Design X IV. Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The wood chip boiler will be centrally located within the complex with underground insulated pex pipe running to all buildings. The pipes will connect to existing boiler or to furnaces through heat exchangers. The wood boiler will be located at mile 110.5 on the Richardson Highway. The district loop will supply (1) Community Hall, (2) Community Clinic/police, (3) office building as well as a (4) shop/garage. The shop is a double walled canvas army surplus 2,400 sqft, currently heated on demand by a diesel blower, the other buildings are currently heated with oil. Having the shop heated year around will benefit our business. There is already a garden with a Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 4 of 29 7/2/2013 potential site for a (5) green house. We also have the potential to sell chipped wood in the future to other wood boiler users in the area. We already have a business model around harvesting wood, and are well prepared for providing the biomass needed for this project. 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.) This will benefit the Native Village of Tazlina and The Association of Tazlina Residents by lowering fuel costs by approximately half for community buildings. It will also stabilize fuel costs and create energy security for the Tazlina residents which use the facilities. In the future we could easily expand the business model to include selling wood chips for use in other local facilities, benefiting more people. Tazlina Village is currently receiving funds from the Bureau of Indian Affairs for a hazardous fuel reduction (HFR) through 2018 and it is anticipated that this commitment will be extended. The labor jobs and management associated with the removal of trees are already well established. A biomass heat project will add job(s) or provide more work for the current employees, as well as provide an increase in knowledge and skills associated with biomass -heat. There is plenty of land to store large stacks of wood from the HFR program and from the Federal Highways program, which Tazlina also participates. Some wood is already being stored as a demonstration of this potential. If the small scale wood chip project in Mentasta proves to be viable, a similar boiler is preferred by Tazlina. Wood for the boiler can be chipped or prepared for chipping in part by the HFR laborers, with extra labor being paid for through the biomass boiler business plan. We feel confident we can provide a supply of wood chips and work for local residents for years to come. If needed wood can be bought ($250 a cord). Still less expensive than our current heat source of oil. If the expectation of continued HFR work is met, this is an excellent use of wood that would otherwise be burned in a brush pile. The area around Tazlina has an excellent wood resource by Alaskan standards. Biomass reports are being submitted with this document such as the “AVAILABILITY OF BIOMASS FUELS ON AHTNA LANDS GAKONA, GULKANA AND TAZLINA VILLAGES” By Douglas Hanson, Inventory Forester, State of Alaska, Department of Natural Resources, Division of Fores try Northern Region Fairbanks, Alaska. There will be a benefit to our business and our equipment if the garage has base heat throughout the winter. Using the excel model provided by AEA the project looks to be economical, and it can help to create secure positions of employment for this small community. It is also a labor skill that we are proficient at and already have a business model for. Tazlina is willing to share their knowledge with other communities thinking of doing the same type of project. W e look at this as a way to train our community and others. 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. We will allow the Mentasta project and the final design to dictate what type of boiler we proceed with, however our preferred is the chip boiler as demonstrated in Mentasta. $12,000 allocated for final design. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 5 of 29 7/2/2013 Tazlina is prepared to contribute $11,000 as a cash match for the purchase of the bobcat. As an In-Kind Match contribution the Native Village of Tazlina already owns a 2,400 sq. ft. double walled tent on a concrete slab, to be used for chip storage and final drying. The tent was donated but the cost in labor was $10,000 to set up. It could easy hold a large supply of wood chips as the prep area and house a bobcat for loading the boiler. If it is allowed the boiler could be housed in this tent, saving the cost to build a new building ($ 45,800 allocated). There will be in-kind labor of $5,000 to help set up the boiler building. The Native Village of The indoor chip storage area is already set up for the project and cost $10,000. Biomass inventory has an on hand value of $3,000. Energy improvements already completed on the community hall building is equal to $8,000 + Saws and trucks equal to more than $3,000 already part of fleet = Total In-Kind or Match of $43,000. Boiler $34,380 + Project Scope, final design estimated to be $12,000 + boiler building $45,800 (if we can put the boiler in the garage this cost might be less) + building for chip storage $10,000 + mechanical parts $65,817 + electrical parts $5,300 + controls parts $10,256 project + Labor cost in construction $37,311. + Wood Chipper (12 inch) $34,000 – which could provide income if we sell chips in future + $30,000 Bobcat - will improve business and provide other benefits and incomes + $3,000 Wood supply either calculated as labor for chipping or purchase of resource + $3,000 Saws and trucks improvements and use + $8,000 energy efficiency improvements already done to Community Hall = $298,864. + a contingency of 5% = Total $ 313,807 Required monitoring equipment is included in contingency and approximated to be $5,000. Asking for a REF grant for $270,807 Wood chips and wood chip storage will be of no or little cost for many years due to wood cutting crews from other grants and the available owned land. And hourly wages is already paid for the cutting and clearing, as well as much of the equipment used. We understand that our buildings need EE improvements, will be looking into other energy efficiency programs and hope to identify money soon to further insulate our buildings. We are applying for the DOE 40 hours of Technical Assistance first. The Clinic/Police building will be the first EE priority. As mentioned, future ideas not included in this budget are the addition of a heated green house after EE improvements to buildings and the possibility of selling chipped wood to others in the Tazlina area. Both of these possibilities provide the potential for additional benefits to the project and an additional income source. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 6 of 29 7/2/2013 2.7.1 Grant Funds Requested in this application including PS&E $270,807 2.7.2 Cash match to be provided $11,000 2.7.3 Total In-kind match to be provided (sum of lines below) $32,000 Biomass or Biofuel inventory on hand $3,000 Garage already set up $10,000 Energy efficiency improvements to buildings to be heated (within past 5 years or committed prior to proposed project completion) $8,000 Saws and Trucks $3,000 Labor for employees to set up building $5000. Overhead including Administrator. $3000 $8,000 2.7.4 Other grant funds to be provided Provides a free wood resource 2.7.5 Other grant applications not yet approved $0.0 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $313,807 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $200,000 over 20 years 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $5,000 (in contingency) 2.7.9 Estimated Direct Financial Benefit (Savings) $200,000 over 20 years 2.7.10 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. $7,000 + annually 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 expects project management assistance from AEA or another government entity, state that in this section. Rick Young will be the Project Manager. A Resume will be submitted electronically. Rick Young prog.mang.tazlina@cvinternet.net Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 7 of 29 7/2/2013 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 Design and Permitting Project scoping and contractor solicitation for planning and design 7/1/15 7/31/15 Permit applications as needed 8/1/15 8/15/15 Final Environmental Assessment and mitigation plans 7/1/15 9/30/15 Resolution of land use, right of way issues 7/15/15 9/30/15 Permit approvals 12/15/15 12/15/15 Final system design 7/1/15 9/30/15 Engineers cost estimate 9/30/15 10/1/15 Updated economic and financial analysis 10/1/13 10/15/14 Negotiated power sales N\A N\A Final business and operation plan 10/15/15 12/1/15 Construction Confirmation that all design and feasibility requirements are complete 12/1/15 12/15/15 Completion of bid documents 12/15/15 1/31/15 Contractor/vendor selection and award 2/1/16 3/1/16 Construction Phases Boiler and hardware ordered and received 3/1/16 6/1/16 Ground work completed 5/30/16 6/30/16 Building complete with boiler and controls 5/30/16 8/30/16 Integration and testing 8/30/16 8/15/16 Decommissioning old system N/A N/A Final Acceptance, commissioning and start up 8/15/16 8/31/16 Operations Reporting 8/31/16 5/15/18 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping 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. The two grants for biomass harvest are in place with long history of providing this service and managing the business. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 8 of 29 7/2/2013 Marce Simeon will be the bookkeeper for this project. She has been the Bookkeeper here at the Native Village of Tazlina since 2000. She has taken care of all payroll duties very effectively. A Resume is attached for Marce. Her email is marce@cvinternet.net After a RFP, an engineer with biomass experience will be put on contract to do a final design, economic analysis and assist in the purchase of all needed equipment and supplies. Rickey Young will manage this effort. Rickey has experience with this type of work. Has spent a lot of time learning about biomass and has the motivation to see the project through. His resume is attached. We have skilled labor and maintenance personnel on staff and with experience in working with woody biomass and machinery. They are eager to learn more skills. We hope to use the AEA as a trusted resource. Ahtna is a trusted resource and partner. We have the support of the community. Please see our letters of support. 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. We will use whatever monitoring equipment is suggested by Devany at the AEA or the engineer. We will report in the manner the AEA designates and we have the human resources to do this. Rickey Young will be the primary contact and Greg Engebretson will be the secondary. Rick Young is 907 822 4375 Ext. 225 and cell number is 907 259 4376. Greg Engebretson is 907 822 4375 ext. 230 and cell number is 907 259 4375. It is in our best interest to monitor the system and we look forward to this. 3.5 Project Risk Discuss potential problems and how you would address them. The small scale wood chip boiler which we anticipate using appears to be a great fit, but is still considered unproven in Alaska. Information from the Mentasta installation of the Portage and Main Chip boiler will determine if we use the same. If the boiler in Mantasta performs as expected, then Tazlina will pursue this boiler. If the boiler does not perform well then Tazlina will adjust to a cord wood boiler, most likely either a Garn or a Wood Gun as an alternative. A pellet-fired boiler will be considered as well but does not seem to have quite as good cost/ benefit. Another advantage of the pellet boiler would be the simplicity of operation. Tazlina included each of these boiler types in its feasibility studies and has enough information for each boiler type to move to final design and construction phase. We will be flexible and look for the best possible solution. Operations and maintenance Plan: A key issue in the success of any biomass project is having a sustainable Operations and Maintenance plan. Our initial plan is developed for a small chip boiler and will be adjusted for a cord wood boiler or pellet if necessary. Tazlina has full/part Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 9 of 29 7/2/2013 time maintenance persons that will be trained in the boiler operation, loading, feeding and needed periodic maintenance. Maintenance is critical but minimal on a daily basis for each boiler type being considered. If a chip fired boiler is installed, loading will take place on an as needed basis but is not anticipated to be more than twice per week during coldest weather, because the chip boiler has auto fed. This low HR Operation cost is one reason why the chip boiler is preferred if it is found to work as expected in Mantasta. If a Garn boiler is installed, we anticipate the need to fill the boiler up to 3 times per day. This will be the job of our maintenance man, and we anticipate needing to train back up employees. After hours filling will be done as needed, and an as needed schedule developed, but we recognize the need to have oil for our fuel oil boilers in case the cord wood boiler is not fired on some evenings or weekends for whatever reason. Therefor we will keep our oil boilers in working order. The frequency of stoking the burner is why we would prefer a chip boiler that auto feeds. We have experience managing maintenance people and working with wood, we will adjust as needed. We have identified options on how to provide a reliable supply of wood. The Native Village of Tazlina has vast forested area that can be used for cutting wood by employees if needed. This method would supply work for local people and still be much less expensive than buying fuel oil. Another way to fill this need is to simply purchase the wood locally on the open market at $250-300 per cord. However we do not expect to need this method. We fully anticipate that the summer work crew will be able to supply the wood for the whole winter. This is our area of expertise. We will need to pay some additional hours of labor to chip and handle the wood on premise ($4,000 a year) but the field work’s labor cost will be largely paid for by the work we already being performed and paid for through other grants. We expect to stock pile wood and allow to dry for at least one season prior to chipping or being cut into cord wood or as per best practices stated by the boiler manufacturer. We will use the garage area as a pre-burn weather proofed and tempered wood storage area. 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 your project and you are requesting funding 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 for 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 Ahtna Land Department manages over 300,000 of commercial forestland within a 20-mile radius of the Native Village of Tazlina. See the attached letter and map from Ahtna. Tazlina has a NRCS contract to create moose habitat on 1500 acres within that radius and is exploring how to economically turn forest stands large enough into biomass available to villages at no cost other than chipping. The species are primarily black spruce and aspen with some cottonwood. Wood that would not commonly be usable for projects can still be used for wood chips. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 10 of 29 7/2/2013 The Tazlina project manager, Rick Young, has experience in chipping and storing wood chips from the projects in Gulkana as well as experience with garn boilers and using cordwood. Chips have been commercially available for $60 per ton. However, with Tazlina’s work force we believe that we can produce chips from the moose projects as well as from fire line projects for less than $60/ton at 25-35% MC. Chips required for the boiler annually is approximately 120 green tons and less if lower moisture content ( MC). Which we have the ability to dry the wood. Local cordwood is typically black spruce and goes for $175 - $200 per cord. Pellets are currently $300 per ton from Fairbanks. The Tazlina Biomass feasibility study on page 6 – 7 there is a boiler comparison that describes in detail which boiler will be the best. On page 10 of the Tazlina feasibility study we can see there is 134 KBTUs of heat to 1 gallon of oil. Tazlina has burned 8,078 gallons of delivered heating oil per year X 134KBTUs = 1,082,452 KBTUs used in one year. On page 16 of the There is a comparison of boilers that the yearly consumption of wood could be as low as 51.3 green tons. We also burned approximately 400 gallons of gas which we brought to the site in a blower to heat the garage each winter. Making the total about 8,478 gallons a year. The Hazardous Fuel Reduction (HFR) crew alone could harvest over 300 cords in a summer. However, the HFR crew sometimes works in areas where there are less big trees. In the event of saving firewood only if it is 3 inches and bigger, the number could drop as low as 200 cords. Which would still allow us to sell chips and heat our buildings. Our plan is to operate our summer wood crews to utilize the wood coming from the moose habitat projects as well as HFR projects. Wood will be stored in the yard for drying and then in chipping or cutting into cordwood lengths. We already have the management, crews, saws and trucks, land for storage, some large equipment and a large garage available to make this process work. The two feasibility studies and a business plan for this project will accompany the grant papers. These will further discuss the benefit of the project. One of the major alternatives would be oil which we are presently using. At the Tok 2014 cost of $4.82 per gallon. 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 hall has a forced air furnace that is only a few years old. The hall also has an oil drip heater that was added 2 years ago in the event of an electrical outage and a wood stove. The community hall is 2400 sq/ft and is occupied 6 days a week. The Hall received $8,000 in EE retrofits money already 5 years ago, Johnny Goodlataw was Forman of EE project, they insulated the roof, took off skirting and insulated under, and dug up the water line and insulated it. We would like to replace the windows with more EE windows as soon as the saving from this biomass project begins. The office building has a forced air furnace that is older but still works well. This building is our least energy efficient and we will look into ways to improve it. The office building is 720 sq/ft and houses 5 offices. The office is occupied from 8am-5pm Monday-Friday. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 11 of 29 7/2/2013 The Clinic/Village Police office is a two story building (was a three bedroom house). It has a new hot water boiler that was installed in the summer of 2012, this building will be the easiest to adapt and it will be a priority to make energy efficiency upgrades to this building. It is approximately 1,600 sq. foot and is occupied 5 days a week. The shop/Tent is 2400 sq. foot has only been heated with diesel space heaters, when it was necessary to heat. It is not heated with the delivered fuel. Costing approximately $1800.00 a year (400 gallons). W e are growing and are in need of full time heat there. Although we understand that this building will always \ be set at a lower temperature. It is a valuable space for working, storing equipment and will store chips for the winter. The boiler will be to spec and placed in the center of the buildings and we will build a boiler house if necessary as budgeted. If we do not need to build a boiler building our economics get even better. We hope the boiler well be able to go in or beside the garage tent so that the tent can be kept warm by the boiler as well without much additional cost. If the boiler building is built it will be approximately 90 feet from the Community Hall, approximately 117 feet from the office, approximately 84 feet from the clinic and Approximately 90 feet from the Garage (tent). 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. The Primary buildings are currently heated with fuel oil. As mentioned above in more detail, the Clinic/ Police office has already been retrofitted to be hydronic and make biomass easy to integrate, we will need to integrate with the forced air units in the Community Center and Office as well as design a system for the garage if necessary. We designed plenty of money in the budget to do this, as well as a 5% contingency. We also would like to keep the large Tent warm enough to store wood chips, bobcat ready for use and equipment, currently the only heat available in the garage is diesel blower when necessary. Heating with wood chips will greatly reduce our dependence on oil and provide relief from the fluctuating and high cost associated with oil in the Copper Valley Region. See attached Feasibility Study. The impact will be great and positive. To our greater community and the NVT. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 12 of 29 7/2/2013 Primary energy sources in the Copper Valley include electricity produced by oil and hydro. Wood and diesel fuel are most often used for heat. Ahtna has conducted complete studies of potential energy sources. Wood heat is the best alternative economically to displace fuel oil. See attached studies from Ahtna. Alaska Wood Energy Associates also conducted a regional biomass study several years ago for Ahtna, Inc. which discusses the biomass market potential in the valley. Our project is small but will serve as an example for others on how to utilize biomass to displace fuel oil effectively. Many of the people of the Copper River Valley are dependent on oil and wood to heat their homes and business. Any time a project such as this is completed in the Copper River Valley it reduces the amount of fuel oil used. However, in our case, we are displacing just over 8,000 gallons a year and this will not affect the total amount enough to change the price structure in the valley. People are talking about bringing propane or LNG into the area. But at this time it is uncertain. People talk about electrical connection to a larger grid, but this is also impractical to wait for. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, energy efficiency 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  Energy efficiency measures (building envelope) There are two biomass boilers being considered: a Portage and Main 500 chip boiler with a capacity of 500,000 BTUs per hour and a Garn 3200 boiler also with a capacity of 500,000 BTUs per hour. However the preferred if functionally feasible is the chip boiler which will displace 100% of the fuel oil required for annual heat vs the Garn which displacement will depend on feeding the boiler at night and weekends to displace 100% of the fuel oil. I cannot foresee any insurmountable barriers to this project. We have good project management skills and are well prepared for this project. It would be best if the project is completed before the ground freezes, as there will be a lot of backhoe work. So timing our orders and deliveries might be one of the biggest challenges. The wood is secured from Ahtna land and projects. Our summer work crews will secure the wood handling in the field. We will include additional work hours for the processing needed on-site in the business plan. It will take approximately 7.6 acres of land to supply the needed biomass for this project. Ahtna and Tazlina have a moose browse project to harvest from 1500 acres over the next two years. This is Tazlina Village Land and will always be accessible only to Tazlina Village members. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 13 of 29 7/2/2013 The wood chip boiler will be connected to the buildings with heat exchangers that will connect to existing hot water system or forced air furnaces. This is detailed in the first feasibility study and generally applies the same to each type of biomass boiler. The optimum installed capacity is to 100% displace fuel oil, our feasibility study demonstrates that this is possible with our current load and resource. We do not anticipate any barriers other than those presented in any construction project in Alaska. We will work to order our equipment and keep our project on time. If something unforeseen arises we will adjust but continue with the effort. The delivery system to the buildings will be through insulated pex water pipes buried in the ground. We will need to run three main lines out of the boiler house if the boiler is in its own building, If the boiler is in the garage we will only need to run two main lines. The buildings are getting older and upgrades are needed to help energy efficiency. Tazlina will be applying for a building upgrade grant to install greater energy efficiency measures. The clinic/police building has the potential to become very energy efficient. Our office building is the least energy efficient from the very beginning and we will use some of the saved money and look for assistance in upgrading it over the coming years. If and when we lower the amount of heat we need through efficiency we will have plenty of room to grow. If in the future we want to build a new building or a greenhouse this would be possible. This is in line with our future plans. 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 obtain harvest contracts and access issues. The site is owned by the Native Village of Tazlina. There is no need for any right of way agreements. Tazlina has full access to Ahtna lands for biomass supply. 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 discussion of potential barriers Since the Native Village of Tazlina owns the land and there is no organized Borough in the Copper River Valley there will be no need for land or air permits. 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 Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 14 of 29 7/2/2013  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers There will be none of these issues here on site in the Tazlina office site or on the Ahtna lands for biomass supply. The footprint of the system will not be on any land that is not already being used by Tazlina Village. There are no T&E species on Ahtna lands. All harvesting will recognize the State Forest Practices Act guidelines. 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: Applicants 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 $12,000 for final design and component list. Boiler $34,380 + building $45,800 +building for chip storage $10,000 + mechanical $65,817 electrical $5,300 +controls $10,256 + project/commissioning labor cost $37,311 + Wood Chipper (12 inch) $34,000 + $30,000 Bobcat + Starting wood supply $3,000 +chain saws and truck $3,000 +$8,000 energy efficiency improvements = Total $298,864 + Contingency of 5% = $313,807- $43,000 In-kind or match = total request of $270,807. Wood chips will be of little cost for years due to wood cutting crews from other grants ($4,000 on site labor). There will be in-kind labor of $5,000 to help set up the building, pex, labor. The Native Village of Tazlina is prepared to contribute $11,000 for the purchase of the Bobcat. The chip storage area is already set up for the project $10,000. Biomass inventory on hand $3,000. Saws and trucks needed for the Biomass harvest $3,000. Energy improvements $8,000 that are done. Other funding source is not specified however we are not including the cost of labor needed to harvest due to the fact that this labor is already paid for through a different grant program and community service. The Native Village of Tazlina is asking for $270,807 from Alaska Energy Authority to complete this project. This cost will cover both the capital costs and the development costs. The AWEA engineer in the feasibility studies developed all boiler components costs. Standard industry costs were Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 15 of 29 7/2/2013 estimated for final design and permitting. Tazlina staff estimated the chipper and bobcat. These estimates are for the Portage and Main Boiler installation. Please see feasibility study. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for 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 reporting impacts of projects on the communities they serve.) Electricity Our current annual Electric Bill is 38,382 KWh X.23 = $8,828 This is the current KWh used for everything last year. The boiler and pump will use ≈8165KWh and will cost $1633 per year. However there will also be electric displaced from current boiler fans, the clinic is already using a pump. Maintenance and operations M&O will be conducted by current employees and will be approximately .2 of an FTE. We already pay our employees for a day’s labor, the job of maintenance equipment will not change the hours paid much just the equipment used and tasks. Total cost for O&M is approximated to be about $3,150 annually. $1,800 for estimated labor and $1,350 for repair and savings. These costs will come out of the avoided costs or savings we would otherwise have spent on fuel oil. 4.4.3 Heat 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 No heat will be sold. However, If and when we lower the amount of heat we need through efficiency we will have plenty of room to grow. If in the future we want to build a new building or a greenhouse this would be possible. A greenhouse would be an additional benefit for the community. We could also began selling wood chips to others with biomass boilers, however at this time we are not committing to this effort. This would be little added cost and provide an income stream. We have not identified buyers yet and have not identified a price range yet. 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 Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 16 of 29 7/2/2013 See the attachment “ All Transactions for Crowley petroleum Distribution “ Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 100% of biomass needed is provided by Tazlina and Ahtna. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Heating Energy Generation and Usage a) Basic configuration i. Number of generators/boilers/other Other (gun furnace) 3 Boiler 1 ii. Rated capacity of generators/boilers/other Other (Oil furnaces) 275 Thousand BTU Boiler 140,000 BTU iii. Generator/boilers/other type Oil iv. Age of generators/boilers/other Three less than 4 years old. One is probably 12 - 15 years old. v. Efficiency of generators/boilers/other All around 80% efficient b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 40 hours at $45 = $1800 additional a year ii. Annual O&M cost for non-labor $1350 for new zone valves, pumps and pipes 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 Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 8,478 gal ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 17 of 29 7/2/2013 Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] Biomass b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] $58.62 MMBtu electricity ii. Heat [MMBtu] $15.60 MMBtu heat ( See page 15 of feasibility study) c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] 116 green tons. See page 15 and 16 of feasibility study. This is estimated to replaces 100% of fuel oil. iv. Other Project Cost a) Total capital cost of new system $313,807 b) Development cost $12,000 to design in grant c) Annual O&M cost of new system $1,350 d) Annual fuel cost $0 ($3,000 Price if we have to buy all chips @ $90/GT) Project Benefits a) Amount of fuel displaced for i. Electricity Refer to Feasibility study page 15 ii. Heat 8,478 iii. Transportation b) Current price of displaced fuel $4.90 c) Other economic benefits $7,000 + Employee learn new skill and receive more hours to chip wood and feed boiler keeping more money in the community. This project will assist us in our financial security and sustainability by removing the variability of fuel prices and substituting with a resource that we have more control over. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 18 of 29 7/2/2013 If and when we lower the amount of heat we need through efficiency of the buildings we have. We will have plenty of room to grow. If in the future we want to build a new building or a greenhouse this would be possible. A greenhouse would be an additional benefit for the community. We could provide chips to the community in the future. We will have a bobcat to do work with and will be able to provide better for our community. We can offer the hall for use more without charging high prices because we will be able too. Increase life of equipment and make garage more comfortable for employees in the winter. The HFR and Federal Highways program would work with the RE grant to create a small sustainable industry for our community. d) Alaska public benefits Use of a renewable resource in a public place that can be a demonstration for others. Help to create a stronger biomass industry in the Copper River Area, possibly be able to train others. Hall, Clinic and Office will be less expensive to use. In a large part due to our other work with HFR and the Federal Highways program are already cutting and burning these trees, we are just increasing the efficiency of this process. Heat Purchase/Sales Price a) Price for heat purchase/sale Not applicable Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.9 - better if no boiler building Payback (years) 8.5 years – better if no boiler building Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 19 of 29 7/2/2013 4.4.5 Building Efficiency 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. Community Hall  Type or primary usage of the building Public events, Public meetings,  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 6:00 PM sometime longer  Single structure  Total square footage Community Hall is 51 ft X 42 ft = 2,142 sq. ft.  Electrical consumption per year Current = 13,256 KW  Heating oil/fuel consumption per year 8,078 total all buildings (except shop) not individually metered.  Average number of occupants 30  No energy audit preformed, o applying for DOE tech assistance and waiting for VEEP o Estimated annual heating fuel savings = 100% Clinic  Type or primary usage of the building Medical Clinic  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 4:30 PM  Single structure – three bedroom house  Total square footage Clinic is 32 ft X 25 ft. 2 story=1,600 sq. ft.  Electrical consumption per year  16532 KW Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 20 of 29 7/2/2013  Heating oil/fuel consumption per year Included in Community Hall bill.  Average number of occupants 5  No Audit o applying for DOE tech assistance and waiting for VEEP o Estimated annual heating fuel savings = 100% Office  Type or primary usage of the building Provide services for village members  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 4:30 PM  Single structure or multiple units Single structure  Total square footage Office is 14 ft. X 60 ft. = 840 sq. ft.  Electrical consumption per year See Community Hall, same meter  Heating oil/fuel consumption per year See Hall  Average number of occupants 5  No audit performed. o applying for DOE tech assistance and waiting for VEEP o Estimated annual heating fuel savings = 100% Shop  Type or primary usage of the building Public events, Public meetings, work shop  Location Mile 110.5 Richardson Highway Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 21 of 29 7/2/2013  Hours of operation 8:00 AM – 4:30 PM  Single structure – double wall tent Total square footage 32’ X 60’ = 1920 square feet  Electrical consumption per year This building is on the Clinic meter  Heating on Diesel, consumption per year estimated at $600.00 This building will only be heated full time after boiler is installed. Heating the shop full time will benefit our business.  Average number of occupants 2 but at times we have had meetings with 100 people present here.  This Building has No audit, and will most likely not be audited. o Estimated annual heating fuel savings = 100% Boiler Building This building is not yet constructed we will design and build as recommended. 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  The bobcat will be a great addition to NVT for other uses. NVT hires equipment every year to move dirt. Pickup heavy things around the yard and shop. Snow removal and minor road repair. The bobcat will also be used to harvest biomass. Having a bobcat could save us approximately $5,000 annually.  NVT has a part time custodian / maintenance person who will get extra hours maintaining the new boiler. Estimated by 1 hour per day hours per day X 7 days per week at $15.00 per hour in winter = $105 per week or $ 4,000 a year. By paying an Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 22 of 29 7/2/2013 employee to chip wood and feed the boiler we are keeping more money in the community.  This project will assist us in our financial security and sustainability by removing the variability of fuel prices and substituting with a resource that we have more control over. This money will stay in the community as the result of using local biomass. Also the money saved by using the new wood chip boiler instead of using oil from other places could be spent locally in stores. Some of this money will help to add services to the local community. Our shop will be heated year around which is better for our equipment and easier on employees and we will have the possibility of selling wood chips to other biomass users. $2,000 or more a year.  The community hall will be made available for free more times to support a good cause. This is a $ benefit to the people in the community.  The wood boiler will be using a fuel that is much cleaner if spilled than oil. The buildings are close to the Tazlina River, so this may help to avoid future contamination. This should be noted as an avoided hazard which would cost us a lot of money $$$.  Others will see this project and start biomass projects for themselves. Use of a renewable resource in a public place that can be a demonstration for others. Help to create a stronger biomass industry in the Copper River Area, possibly be able to train others.  Biomass will be used instead of going to waste, such as burning or rotting. A large part due to our other work with HFR and the Federal Highways program are already cutting and burning these trees, we are just increasing the efficiency of this process.  If and when we lower the amount of heat we need through efficiency of the buildings we have. We will have plenty of room to grow. If in the future we want to build a new building or a greenhouse this would be possible. A greenhouse would be an additional benefit for the community. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations 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 boiler will be operated by the tribal maintenance personnel, as well as any on-site labor. These hours will be during current working hours. The resource for the wood chips or cord wood will be supplied by the two brush crews that work every summer cutting trees and clearing brush. This will supply the amount of biomass needed at little to no cost at least through the current contract and will give this project a kick start. The crews have cleared an average of 12 acres in the past few years, our project is estimated to need 3 to heat all of our buildings. If something happens and neither crew would supply the wood, two or three people can be hired on a short-term basis to cut the wood and make the chips. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 23 of 29 7/2/2013 The large tent shop that is already standing and is ready to heat with a double wall construction will be used for storing of wood chips that can dry for a year before being used, if need be. We will use this structure as need be. We already have maintenance people on staff that will take care of the day to day operations of the wood chip boiler. The lead maintenance person is Greg Engebretson. He has years of experience in the field and working with equipment. We have a general fund account that parts will be purchased from and we will plan ahead for the maintenance needed to the biomass system. Marce Simeon will be the bookkeeper for this project. She has been the Bookkeeper here at the Native Village of Tazlina since 2000. She has taken care of all payroll duties very effectively. A Resume is attached for Marce. Here email is marce@cvinternet.net After a RFP, an engineer with biomass experience will be put on contract to do a final design, economic analysis and purchase all needed equipment and supplies. Rickey Young will manage this effort. Rickey has experience with this type of work. Has spent a lot of time learning about biomass and has the motivation to see the project through. One of the grants that are in place for this project are the Bureau of Indian Affairs Hazardous Fuel Reduction grant that pays a crew to cut wood and dispose of it. The other grant is from Federal Highways. These grants provide money for a crew to cut wood along road right of ways. These grants pay a portion toward our administrative fees of our maintenance operations. These funds are already paying for the support of the existing systems and will continue to do so in the event of a breakdown of the new wood chip boiler. We will only need to appropriate some of the money we are saving from the conversion to biomass to insure that the program will be sustainable in the event that these grants are not reinstated in the future. We do feel confident that the HFR program will continue, but will plan for a laps in funding or overhead or O&M when we get the biomass project going. I personally, as the Tribal Administrator feel the need to report on this new system for years to come and will. The monitoring equipment needed will be designated in the final design, the cost estimate we used came from AEA. I feel the information gathered from this project will benefit the whole state of Alaska for many years to come. This system appears to be a breakthrough in modern biomass heating technology. From the information in the feasibility study, I feel this will be a success story that all of Alaska and lower 48 states will want to know about. It is on a small scale and no great risk will be taken with little to lose and lots to gain. 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. The feasibility study has been done showing great support for the wood chip boiler or any biomass unit. Wood has already been cut and stacked for this project as demonstration of Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 24 of 29 7/2/2013 potential. We have approximately one winter’s supply. As soon as the grant is awarded and a wood chipper is bought, the wood already stored will be chipped, we already have indoor storage. So our first winter’s worth of fuel is just waiting to be used. The large shop structure is already constructed on a full cement slab that will be used to store excess wood chips. This is why we need the Bobcat or some such small loader to move the chips around. The wood chip boiler may also be set up in this building, which would make use of excess heat from boiler to heat that building. This would save the price of building a boiler building, and running a pipe to heat the garage, but we are waiting on the final design to see what option is the best. This project will also save us money from heating the shop. We have the human capacity to complete this project, we have relationships with potential engineers and the people at the AEA that can help us in decision making. We wanted to be funded last year, we were ready then and are even more ready now. We have started looking into EE for are buildings and are more prepared for EE then we were at this time last year. 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, 2013. There is no opposition known or anticipated for this project. There has been positive community talk about this project for several years. Local residents are waiting with anticipation. When all goes well there will be other business and home owners buying the same equipment. Attached are the letters of support from local community representatives and other agencies. 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. As mentioned above we receive a grant for fire prevention. This is in the amount of $85,000. We also receive money from Federal Highways yearly that is used partly for a brush crew. We run that crew almost every summer and spend around $45,000. The funding sources for the biomass boiler will be from AEA and in-kind from The Native Village of Tazlina. Our grants to clear brush will provide us with a fuel source at a very low price. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 25 of 29 7/2/2013 We have a truck and wood harvest equipment worth over $40,000. We already erected the tent/garage for $10,000. We already have trained personnel and management. All reporting will be carried out as in accord with rules of grant agreement. We will also provide any information that may help AEA with any decisions on giving funding to others for the same boiler. Tazlina is prepared to contribute $11,000 as a cash match for the purchase of the bobcat. As an In-Kind Match contribution the Native Village of Tazlina already owns a 2,400 sq. ft. double walled tent on a concrete slab, to be used for chip storage and final drying. The tent was donated but the cost in labor was $10,000 to set up. It could easy hold a large supply of wood chips as the prep area and house a bobcat for loading the boiler. If it is allowed the boiler could be housed in this tent, saving the cost to build a new building ($ 45,800 allocated). There will be in-kind labor of $5,000 to help set up the boiler building. The Native Village of The indoor chip storage area is already set up for the project and cost $10,000. Biomass inventory has an on hand value of $3,000. Energy improvements already completed on the community hall building is equal to $8,000 + Saws and trucks equal to more than $3,000 already part of fleet = Total In- Kind or Match of $43,000. Boiler $34,380 + Project Scope, final design estimated to be $12,000 + boiler building $45,800 (if we can put the boiler in the garage this cost might be less) + building for chip storage $10,000 + mechanical parts $65,817 + electrical parts $5,300 + controls parts $10,256 project + Labor cost in construction $37,311. + Wood Chipper (12 inch) $34,000 – which could provide income if we sell chips in future + $30,000 Bobcat - will improve business and provide other benefits and incomes + $3,000 Wood supply either calculated as labor for chipping or purchase of resource + $3,000 Saws and trucks improvements and use + $8,000 energy efficiency improvements already done to Community Hall = $298,864. + a contingency of 5% = Total $ 313,807 Required monitoring equipment is included in contingency and approximated to be $5,000. Asking for a REF grant for $270,807 Wood chips and wood chip storage will be of no or little cost for many years due to wood cutting crews from other grants and the available owned land. And hourly wages is already paid for the cutting and clearing, as well as much of the equipment used. We understand that our buildings need EE improvements, will be looking into other energy efficiency programs and hope to identify money soon to further insulate our buildings. We are applying for the DOE 40 hours of Technical Assistance first. The Clinic/Police building will be the first EE priority. As mentioned, future ideas not included in this budget are the addition of a heated green house after EE improvements to buildings and the possibility of selling chipped wood to others in the Tazlina area. Both of these possibilities provide the potential for additional benefits to the project and an additional income source. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 26 of 29 7/2/2013 Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application. Final Design, Permitting, 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 Grant 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 Final Design 7/31/15 $ $ $12,000 Engineer cost estimate 9/30/15 $ $ $ 3,000 Permitting 8/1/15 $ $ $ 0 Construction 6/30/16 $ $ $128,926 Commissioning 8/31/16 $ $ $3000 Wood Ready Now $ $ $ Equipment 3/1/16 $ $11,000 $ Starting Wood SupplyChainsaws and truck Ready Now $ $6,000 $ Construction Labor 8/31/16 $ $ 5,000 $ Energy efficiency Improvements 8/30/16 $ $ 8,000 $ Building to hold chips Ready Now $ $ 10,000 $ TOTALS $ $ 40,000 $ Budget Categories: Direct Labor & Benefits 8/31/16 $ $ $49388 Travel & Per Diem $ $ $ 0 Equipment 3/1/16 $ $ $64,000 Materials & Supplies 3/1/16 $ $ $49,936 Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 27 of 29 7/2/2013 Contractual Services 3/1/16 $ $ $ Construction Services 8/31/16 $ $ $5,000 Other $ $ $ TOTALS $ $ $ 315,250 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. ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 28 of 29 7/2/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Native Village of Tazlina Regular Election is held: July 25, 2014 Date: 9/18/2014 Authorized Grant Signer(s): Printed Name Title Term Signature Rickey Young Tribal Administrator I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Gloria Stickwan Council President 2 Grantee Contact Information: Mailing Address: PO Box 87 Phone Number: 907 822 4375 Fax Number: 907 822 5865 E-mail Address: prog.mang.tazlina@cvinternet.net Federal Tax ID #: 92-0068390 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round VIII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 29 of 29 7/2/2013 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. One paper copy and one electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Rickey Young Signature Title Tribal Administrator Date 9/18/2014