HomeMy WebLinkAboutOVK Kake AEA REFG appRenewable Energy Fund Round 6
Grant Application
AEA 13-006 Application Page 1 of 25 7/3/2011
Wood Heat Feasibility Study and Conceptual Design for the
Organized Village of Kake
Kake Alaska has some of the highest energy costs in the Nation. Residents are currently paying 60 cents
per kwh for electricity and $ 5.87 for heating oil. This situation is a significant deterrent to local economic
growth and a significant burden on meeting basic needs. High energy costs are causing many in the
village, especially our elderly population, to face the choice between spending their limited income on
food or fuel. Our community and the partners that we are working with are committed to changing this
situation and we believe that wood energy is an important part of the equation.
Woody biomass heating systems are attractive solutions for our community for a number of reasons. The
fuel is clean burning, renewable, low-carbon, and can potentially be sourced within the local area.
Perhaps more importantly, wood heating systems can offer a significant cost savings to the user, while
keeping the dollars paid for the heating fuel circulating within our community.
We are seeking funds to conduct a feasibility study and conceptual design for a centralized wood heating
system that would serve the energy needs for two of our tribal buildings. Our hope is that with a
successful demonstration of how wood energy can offset heating oil use and save money, we can catalyze
a number of similar projects throughout the village. We are also particularly interested in developing a
system that can be fed by wood products that are sour ced locally and could contribute to our economy’s
resilience by providing jobs in the acquisition, processing and delivery of woody biomass.
Currently the Organized Village of Kake (Tribal Government) uses approximately 5,000 gallons of
heating fuel wit h an annual cost of approximately $26,000. Based on the pre-feasibility work of Dan
Parrent for the local school and community building (Preliminary Feasibility Assessment for High
Efficiency, Low Emission Wood Heating in Kake, Alaska, May 2008) it is safe to assume that there is
enough raw resource availability to support a cordwood boiler for our heating needs – we estimate a
potential savings for the two OVK buildings of roughly $18,500 annually. Our vision is that if these
savings can be made a reality and this proof of concept can spawn additional wood energy projects within
the community, the savings can be used to support local employment in everything from wood gathering
and processing to delivery and boiler maintenance.
In addition to the value of replacing oil with a readily available and renewable energy source, we are
keenly aware of the importance of removing the burden of heat energy loads from the other alternative
energy systems that we hope will eventually meet the majority of the community’s electrical needs. We
believe this value is relevant to potential community based systems (wind, solar and tidal) as well as
regional systems (hydroelectric-based intertie with Petersburg) as was noted in the recently released Final
Southeast Integrated R esource Plan, Black and Veatch, 2012)
We want to emphasize local economic development as a key factor in the feasibility analysis as well as
the educational benefit of this demonstration project so that it might lead to scaling similar systems up to
meet a much larger percentage of the communities heating needs as well as provide economic
development opportunities locally. The partners we are currently working with (SEACC, START, REAP,
USFS) share this sentiment and we are actively collaborating on develop ing a holistic energy plan for the
village of Kake. We see this projects’ contribution to the state program as part of a team effort that can
add significantly to regional and state interests in improving our overall energy economy.
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Grant Application
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Organized Village of Kake
Type of Entity: Fiscal Year End
Tax ID # 92-0074844 Tax Status: For-profit or X (Tribal Gov’t) non-profit ( check one)
Mailing Address
P.O. Box 502
Kake, Alaska 99830
Physical Address
541 Keku Road
Kake, Alaska 99830
Telephone Fax
907-785-4902
Email
GEWilliams@KakeFirstNation.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Dawn Jackson
Title
Executive Assistant, Organized Village of Kake
Mailing Address
Same as above
Telephone
Same as above
Fax
Same as above
Email
DSJackson@KakeFirstNation.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your application
will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2 Attached to this application is formal approval and endorsement for its project by its 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
or
No
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.
Yes
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached grant
form. (Any exceptions should be clearly noted and submitted with the application.)
Yes
or
No
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.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Wood Heat Feasibility Study and Conceptual Desig n for the Organized Village of Kake
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.
The proposed project is located in Kake Alaska on the campus of the local tribal government, the
Organized Village of Kake (OVK). OVK’s campus includes the tribal government office and the tribally
operated lodge as the initial candidate buildings for the district heating loop, with several other bu ildings
that could potentially benefit from the loop in a future phase. This project could capture the intent of the
community as it pursues the development of its socio-economic future which is integrally linked to
affordable energy.
As the local federally recognized tribal government, OVK serves the community of Kake in several roles.
This includes delivery of many programs and services ranging from education & employment assistance,
economic development, social services, youth & elder, environmental, realty & rights protection, natural
resources & subsistence protection, cultural & language, housing, and transportation.
The tribe is also very actively involved with issues surrounding energy for our community, both in supply
options and conservation. This started coming to a greater focus several years ago as the tribe became a
member of the regional Southeast Conference Energy Committee and has evolved most recently to even
greater advocacy at the local & regional levels for Kake’s energy future, member community for the DOE
Office of Indian Energy START program, selected community for REAP project activities, ongoing work
with Tlingit & Haida Regional Housing Authority and Southeast Alaska Conservation Council on energy
conservation and alternative supplies, etc. OVK is also a charter member of the Kake CEDS
(Comprehensive Economic Development Strategies) Committee and the Kake Energy Committee. As
such, OVK is highly visible to the community and beyond, with this proposed project serving as a mode l
for others.
The physical location of the OVK campus is readily visible to the community on the main arterial road,
with a woody biomass project being an excellent demonstration project to the community as a whole. Not
only could it prove the benefits of utilizing the large fuel supply surrounding our community, it could also
enhance the local economy with harvests of local resources for heating rather than importing fuel; all in in
addition to aiding the tribe’s operations by easing the overhead costs of delivering its many services to the
community
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.
GPS Location in Decimal Degrees
Latitude: 56.965256° Longitude: -133.925683
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
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beneficiaries of the project.
This project will be a benefit to the community of Kake as well as provide valuable information to other
rural areas in Southeast Alaska. Like many rural villages, Kake relies heavily on fuel oil to meet its
heating needs and drastic increases in cost over the past decade have negatively impacted the quality of
life for many residents. The community has identified woody biomass as a potential means to a more
affordable and sustainable energy portfolio. The tribe has initiated community meetings addressing
woody biomass issues and has invited regional experts to discuss technologies and share lessons learned
from state-wide projects. This feasibility study is the next step in community education and will provide
valuable information and direction as Kake continues its energy planning and project efforts.
.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind X Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance Design and Permitting
X Feasibility Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
This proposal will focus on a feasibility assessment and conceptual design for a wood heating system and
district heating loop for an office building and lodge owned by the Organized Village of Kake (OVK), a
federally recognized tribe. The overall goal of the feasibility study is to determine what kind of wood
heating system will best meet the objective of the tribe’s energy planning targets which are to: reduce the
cost of energy, reduce the environmental impacts of energy consumption, explore locally sourced
sustainable energy supplies and to provide energy related job opportunities. The assessment will expand
on previous reconnaissance work performed by Dan Parrent in 2008 (Preliminary Feasibility Assessments
for High Efficiency Low Emission Wood Heating in Kake, Alaska) for the Kake School and Community
building and provide an analysis of the economic and socia l benefits of high efficiency low emission
cordwood/multifuel systems (e.g. Garn and Wood Master) versus pellet systems for the two tribal
buildings. The scope of the feasibility study will include assessing the suitability and economics of
various wood boiler systems including storage and delivery infrastructure, comparing the costs of locally
sourced cord-wood and imported bulk fuel, conducting a thorough resource inventory for local cord -wood
production and evaluating and comparing the potential of loca lly sourced wood and imported pellets to
create jobs. This feasibility study will also include collaboration with efforts of the Renewable Energy
Alaska Project to determine how, if at all, efficiency measures may decrease the OVK campus energy
loads and influence the final system design, as well as to what degree switching to biomass heating may
help to recirculate money back into the community that would otherwise be spent on imported fuel oil.
The outcome of the feasibility study will be a conceptual design and final system recommendation based
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on the economic, logistical, environmental and social objectives of the community.
The state recently released a regional energy plan (Southeast Integrated Resource Plan) that
recommends significant conversions from fuel oil to wood based heat. The tribe also recognizes
the potential of wood based heat to support a sustainable community energy portfolio by
offsetting imported fuel oil with renewables, reducing costs, creating local job opportunities and
aiding in forest health. The tribe has identified wood heating as one of four energy priorities in
its Community Economic Development Strategy Plan (CEDS updated 2012) and during its on-
going energy planning process as part of DOE’s START (Strategic Technical Assis tance
Response Team) program. In addition, the tribe has taken a significant leadership role in the
community on energy issues and biomass specifically, and in June 2012 invited a number of
technical experts to educate the community on the types of technologies available and lessons
learned from projects throughout the state. The information resulting from this feasibility study
will be a significant contribution in the community’s energy planning and project efforts.
.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower
energy costs, etc.)
A wood boiler system would offset all or a significant portion of the fuel that is presently being
used to heat the tribe’s two facilities. These buildings currently consume approximately 4,800
gallons of fuel oil per year at a cost of $26,559 (@$5.63per gallon). A previous study conducted
for two community buildings (community center and the school) in Kake by Dan Parrent
(Preliminary Feasibility Assessment for High Efficiency Low Emission Wood Heating) found
that cord wood systems could displace a cumulative 30,250 gallons and save approximately
$127,525 in fuel related costs (not including non-fuel and O&M costs). Extrapolating from this
report we estimate that a single cord wood garn system for the two tribal buildings would use a
fuel equivalent of 53 cords and cost $10,600 (@ $200 per cord) for a potential annual gross
savings of $15,959. These numbers would be updated as part of the feasibility study to reflect
current fuel oil and processed wood fuel costs in Kake.
There are numerous potential public benefits that could occur as a result of this proposal
including gathering important early baseline information that will help in determining the
appropriate application and sustainable scale of wood heating conversions in Kake . This
information will further assist the community in an informed energy planning process. This
feasibility study and design process will provide a thorough economic and social cost
comparison between locally sourced woods and imported pellet fuel so that the tribe can choose
a heating solution that best aligns with its energy vision. If a cord wood or multi use system is
determined viable over a pellet s ystem, it could provide a market and use for low grade wood as
fuel and help advance the ecological, management and economic objectives of the community.
Demonstrating either a local or imported renewable wood energy resource in a sustainable
manner is invaluable to the community as both will increase our resiliency and energy
independence, save money and create jobs.
An additional benefit to the deployment of sustainable and effective wood heat applications is
that taking care of heating loads in the near term will better prepare the community and the
region for future renewable electricity supplies from an intertie and/or small scale hydro, wind
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and solar integration. The Southeast Integrated Resource Plan highlight’s that a significant issue
facing the region is that as the cost of fuel has increased the region’s hydro capacity has rapidly
diminished due to heating conversions from fuel oil to electricity. The community of Kake wants
to address heating loads so that future electricity supply sources will remain sufficient for
appropriate end use utilization and allow room for economic growth.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other
contributions to the project.
The funding amount requested from the Alaska Energy Authority is $30,700 which includes
salary support for the project manager and contractual support for the feasibility study and
conceptual design. An estimate for the system, resource and busines s feasibility was provided by
from Wise Wood LLC and Living System Designs LLC (see attachments).
Additional contributions to the project will include in kind, technical and staff support from the
Organized Village of Kake, the Southeast Alaska Conservation Council and the Department of
Energy’s Strategic Technical Assistance Response team.
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)
2.7.1 Grant Funds Requested in this application. $ 30,700
2.7.2 Cash match to be provided $----
2.7.3 In-kind match to be provided $5,000
2.7.4 Other grant applications not yet approved $------
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $35,700
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully operational project)
2.7.6 Total Project Cost (Summary from Cost Worksheet including
estimates through construction)
$ To be established by the
results of feasibility study
and conceptual design
2.7.7 Estimated Direct Financial Benefit (Savings) $ n/a
2.7.8 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 your application (Section 5.)
$
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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). 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.
Gary Williams will be the project manager, which is in concert with his current role as START
community energy champion and chairperson of the Kake Energy Committee (resume included with
proposal). Mr. Williams also serves as OVK’s executive director which yields a wide-perspective of
overall operations, with tribal staff available to assist with tasks under his direction. A modest budget
amount for personnel is included in the project budget.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in your proj ect 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.
Milestones Tasks
Start
Date
End
Date
Project Scoping, Partner
Coordination and Contractor
Solicitation
Organized Village of Kake will facilitate
communications with AEA, the START
technical assistance team and other regional
partners to outline scope of work under
contract and select contractor
7/13 9/13
Detailed Wood Heat System
Assessment
1) Initial Facility Review: a) Review and
verify facility heating data provided by Kake
community building owners or managers b)
Assess current heating systems to determine
steps to integrate with a heating system
fueled by the four options listed above c)
Work with facility staff to understand needs
and existing issues related to the heating
system
2) Preliminary Site Investigation: (based on
one (1) site visit to Kake, AK) to include the
following: a) Available space (within
existing structures or space for new
structures) b) Street access and space
available for fuel storage and deliveries c)
Any building or site constraints (i.e.
topography, permitting, historical
preservation etc.) d) Estimate proper size of
various heating systems to meet needs of the 10/13 12/13
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facilities e) Based on site information
gathered, formulate options for installing: a
cordwood fired biomass energy system; a
pellet-fired biomass energy system; a system
capable of utilizing multiple fuels
3) Preliminary Cost Estimate a) Design and
engineering b) Fees and permitting c)
Mechanical integration to existing or new
HVAC system d) Biomass or fossil fuel
energy unit (boiler or furnace package) e)
Structure to house biomass energy unit,
conveyance and fuel storage (as needed) f)
Emission controls (if required) g) Other
equipment, materials, and construction costs
4) Economic Analysis: Conduct a 30-year
life cycle cost analysis that incorporates, at a
minimum: a) Baseline data on existing
heating system (i.e. fossil fuel costs per unit,
average annual fuel usage, average annual
heating costs) b) Projected volume of wood
fuel and fossil fuel required to meet heat
demand c) Estimated wood fuel and fossil
fuel cost per unit and annually d) Total
project cost for each scenario e) Project ed
savings, cash flow analysis and payback
schedule
Resource Assessment 1) Pre-field assessment: a) Acquisition and
synthesis of existing forest inventory data b)
Acquisition and analysis of satellite imagery
to fill data gaps 2) Field work: a) Forest
surveys and plot data collection. b) Forest
data analysis and final GIS mapping. 3)
Summary Report: a) Draft initial summary
report. b) Collaborate with primary
contractor on the transfer of report
information for inclusion in the feasibility
study report. 7/13 9/13
Assessment of Economic Impacts
of Biomass Supply Options
In order to understand which biomass fuel
supply option will result in the highest net
benefit to the community in terms of
economic development, the report will
include an analysis of the following fuel
supply scenarios:
1) Supplying cordwood produced locally
2) Utilizing imported wood pellets
3) Manufacturing wood pellets or other
densified fuel locally
Each option we will look at the following:
a) Estimated capital costs for establishing a
fuel production or distribution operation
capable of supplying local needs
b) Estimated operating and maintenance 11/13 1/14
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costs and production schedules needed to
satisfy the estimated market demand.
c) Financial pro forma models that include
long-term (5 yr) cash flows of each option
d) Economic return analyses (IRR, NPV &
Accumulated Cash Flow) for each option
e) Labor requirements (local employment
estimate)Assess local cord-wood production
business model with analysis of potential
local economic impacts that includes a
comparison with imported bulk fuel
Final Report Final Report: will include an executive
summary of the milestones addressed,
recommended next steps and conceptual
design best reflecting community’s energy
goals
3/14
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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.
In addition to OVK’s staffing, the several partnerships that OVK enjoys will be instrumental in
successfully carrying out the proposed project. These include established relationships and working
alliances with staff from THRHA, SEACC, NREL, Marsh Creek LLC, REAP, BIA, USFS and others
from around our region and state, but also locally with the Kake CEDS Committee, Kake school system,
municipality as well as IPEC, the local electrical utility (which supports our initiative to address heating,
in addition to electricity).
OVK has an established procurement policy which is in line with A-87 cost & accounting principles.
Beyond these guidelines, OVK anticipates consultation from the aforementioned partners, including
assistance through the START program (see letter of support), as the tribe evaluates and selects a
contractor to fulfill the necessary study and design for our system. When proceeding with the process,
besides fulfilling the evaluation and design objectives, we wish to maintain a transparent process to the
community and local educational system – i.e. sharing what we learn, gathering input and making this
project a model for other systems in Kake and potentially within other communities of our region and
state. Fiscal management will be through OVK’s established fund accounting system. OVK has an
annual A-133 fiscal & compliance audit performed to maintain its positive standing with the many
agencies it deals with.
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 program manager from OVK, Gary Williams will be in regular communication with the
contractor and will provide progress updates via email to the Alaska Energy Authority on the
dates specified in the project schedule. The tribe is also willing to participate in the state’s Wood
Energy Task Group meetings a nd offer any relevant project updates. The tribe participates in
monthly community energy committee meetings and bi-monthly community economic
development committee meetings during which project information will be shared to the
committee members.
3.5 Project Risk
Discuss potential problems and how you would address them.
The proposal calls for conducting a feasibility study and conceptual design; no ground work or
construction will take place. The tribe has initiated a substantial amount of community
discussion on energy issues and wood heat alternatives, and residents in Kake have shown
sincere interest in gathering more information about system logistics and opportunities. This
proposal has broad community support from the tribe, school, municipalit y, tribal corporation
and regional conservation organizations and we do not anticipate any problems.
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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 wood heat system feasibility assessments proposed in this grant application will cover those that are fired
by cord wood and bulk fuels (e.g. pellets). Currently, the only readily available wood heating product in the
village of Kake is cord wood. This proposed feasibility study will compare the environmental, social and
economic costs and benefits of using locally harvested cord wood vs. imported bulk fuel as an energy source.
There are approximately 30,000 acres of road accessible young growth forest (actively managed stands) that
are about evenly split between the US Forest Service, SEALASKA Corporation and Kake Tribal Corporation
(See Map Attachment). Age classes of these stands range from 15-50 years and site productivity of this mostly
mixed hemlock and spruce forest is highly variable. Many of these young growth stands are in need of pre-
commercial thinning and/or thinning treatments for wildlife habitat enhancement. Some of these lands could be
available for commercial thinning in the next 20 years. There are also potential opportunities for acquiring
wood waste through nearby old-growth logging opportunities including the approximately 25 million board
foot timber sale that was recently NEPA cleared by the USFS (Central Kupreanof Timber Project).
Based on the work of Dan Parrent in the Preliminary Feasibility Assessment for High Efficiency, Low
Emission Wood Heating in Kake, Alaska, May 2008 it is reasonable to assume that cord wood for heating the
OVK buildings could be acquired locally, and that this source would be economically viable when compared to
heating oil. As part of this feasibility study we will consult with Mr. Parrent and other experts to insure that the
numbers used in our feasibility assessment are updated to reflect current market conditions.
In addition to simply saving money for the tribe, OVK is interested in investing in a wood heat system that can
be duplicated and scaled up for other locations in the community. Our hope is that others might learn from this
demonstration project and consider developing their own wood heat energy system so that together we can
collaborate and benefit from more advantageous economies of scale. Toward that end we are proposing to
conduct a resource inventory for the road accessib le lands around Kake in order to gain a fuller understanding
of the “carrying-capacity” of the local area for the sustainable production of cord wood. This work will be done
through the use of a GIS system and targeted ground-truthing and will take place in collaboration with the three
primary land owners in the area: the USFS, Kake Tribal Corporation and SEALASKA Corporation.
For comparison to the feasibility analysis of local cord wood production, a bulk fuel market assessment will be
conducted to generate up to date numbers for delivered forms of wood fuel including pellets and other densified
products that are suitable for small to mid-scale wood boilers.
Local Wood Resource Inventory Work Plan
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The local wood resource inventory will take place in two phases:
Pre-field forest inventory data and satellite image analysis
Field verification, final GIS analysis and summary report writing
The pre-field forest inventory data analysis will be based on USFS and available private land owner forest
inventory da ta as well as information on long-term management objectives for each land owner. Both young-
growth and old-growth timber stands will be analyzed. Yield scenarios will be explored that cover a range of
logging prescriptions and include assessing cost saving incentives such as the use of stewardship contracting in
forest restoration projects.
Satellite imagery of at least 1 meter resolution will be acquired to fill existing imagery data gaps and will aidin
the assessment of young growth stand productivity and the potential for dovetailing woody biomass acquisition
with higher grade forest products to assist with the economic viability of logging operations.
Field verification will take place over a 2 week period and will be designed to verify the assumptions made
about stand volumes and operability across the three ownerships in the vicinity of Kake. This ground -truthing
data will be used to calibrate the numbers used in the GIS and will result in final cord wood volume estimates
for economically operable lands near Kake.
4.2 Existing Energy System
4.2.1 Basic configuration of Existing 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 OVK lodge consists of a single building, approximately 4700 square feet. Heat is provided by a
Weil Mclain WGO 5 boiler rated at 182,000 Btu’s that is 15 years old. Heat is distributed through a
hydronic radiant system embedded in concrete slabs on the first and second floors. The boiler also
supplies heat for domestic hot water through a separate heat exchanger in a 119 gallon (Amtrol) hot
water tank.
The OVK office building consists of a single building that is approximately 4000 square feet . Heat is
provided by a Weil McClain WTGO 4 boiler rated at 145,000 Btu’s that is approximately 7 years old.
Heat is distributed by hydronic baseboards. The boiler has a built in heat exchanger to supply hot
water to the building.
Plumbing from a new district wood heat system could easily be integrated with the buildings’ existing
plumbing.
4.2.2 Existing 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 community currently relies on imported fuels for the vast majority of its energy needs. Fuel is
delivered by barge and is distributed by the Kake Tribal Corporation at a pump station and via a
delivery truck. The communities annual fuel consumption is roughly 465,000 thousand gallons.
Approximately 100,000 gallons of that total is used for commercial and residential heating needs. The
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OVK buildings use 4,800 gallons of fuel for heat annually, or approximately 5% of the communities
total heating oil consumption. Successful completion of phase II of this project would reduce OVK’s
heating oil consumption by over 95%.
Initially, t he project would have limited impact on existing fossil fuel supply systems in Kake, but as
our model might be replicated and scaled up, imported fuel could be reduced significantly. For
example, based on the work of Dan Parrent, if the School and community building were to convert
along with OVK, heating oil consumption in our community could be reduced by 35%.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
Fuel oil is the primary source of energy used for heating commercial facilities in Kake (there are a few
propane heating systems in the community). Although numerous residents use wood for heat there is
also a significant dependency on heating oil in this market sector as well. We expect the immediate
impact of our project to directly displace most of our tribe’s use of oil for heat. Our hope is that by
demonstrating a significant financial savings through the conversion to a HELE system for heat,
providing a sober assessment of a locally sustainable supply of biomass and an analysis of the
potential for these projects to catalyze economic growth, this project will have a “snowball effect”
within in our community that results in additional commercial and residential systems ($ savings for
all), local job creation and an increased circulation of capital within the community.
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
This is a feasibility level proposal which will examine the economic and social benefits of HELE cord
wood, multi-fuel (Wood Master) and pellet systems for buildings on the OVK campus. Regardless of
the final syst em selection, a wood-fired heating system will share some similar infrastructure
including a building for the boiler, a fuel storage building and plumbing from the boiler to each of the
buildings. Because the heat distribution in both of the buildings is c urrently hot water, integration into
the existing plumbing system will be relatively simple. While the system recommendation from the
study is unknown, we can extrapolate and offer rough estimates for the system cost using information
from the 2008 Parrent study done for Tok.
The Tok report found that a building with heating oil consumption very similar to the OVK buildings
required a boiler rated at 425,000 btu/hr , which falls between the unit that was selected in the Tok
study (Garn WHS 2000) and the ne xt model up (Garn WHS 3200). Given the challenges of
maintaining dry wood in Southeast Alaska compared to Tok (effects max btu output and efficiency)
and OVK’s desire to have some room to grow it is possible we will need a larger system to meet our
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needs but we include the Tok report cost estimates as a useful reference at this point. OVK’s
feasibility study will provide a more comprehensive analysis of various systems that includes both
economic and social costs and benefits.The Tok report estimated system and infrastructure costs at:
Wood storage building: …………………$19,200
Boiler building: …………………………$16,000
Boiler (w/shipping): …………………….$17,400
Plumbing/connections: …………………$7,500
Installation: ……………………………..$5,000
Total: (w/ 25% contingency): ………… $81,375
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.
No land ownership issues are anticipated. At this phase we are just doing feasibility and conceptual design and
land management issues are not directly related at this point. Also, OVK owns the land for the proposed boiler
and fuel storage site and there should be no issues at construction either.
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
None anticipated under this feasibility assessment and conceptual design phase.
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
None anticipated.
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
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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
The estimates provided reflect the cost of feasibility level study and conceptual design.
Total anticipated project cost: $35,700
Feasibility Study:
a) System and economic assessment: $19,000
b) Resource assessment: $9,700
Additional Personnel Support: $2000
Requested funds from AEA: $30,700
In-kind from OVK: $5,000
*Sourced from quote provided by consultants from WiseWood, Inc. and Living System Designs LLC (see
attachments)
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.)
The operation and maintenance costs will be identified in the feasibility for the various wood heat systems,
however once built, these costs are anticipated to be covered through avoided fuel costs
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
n/a
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in evaluating
the project.
This proposal calls for feasibility studies and conceptual designs. The numbers we have provided are
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estimates from Preliminary Feasibility Studies performed for Kake and Tok and will be updated as
part of the proposal.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis.
Annual average resource availability. The 2008 Parrent Study performed for Kake found that
the local resource supply would be adequate to support
cord wood heating systems for two facilities that
consume more fuel oil than the OVK buildings. The
resource availability will be looked at closer as part of
this proposal. Please see section 4.1 for more
information.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 2 -fuel oil boilers one at the OVK lodge and the other at
the OVK office building
ii. Rated capacity of generators/boilers/other Lodge 145 MBH, Office 182 MBH
iii. Generator/boilers/other type boilers
iv. Age of generators/boilers/other Lodge 15 years, Office 7 years
v. Efficiency of generators/boilers/other Lodge 85%, Office 85%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor n/a
ii. Annual O&M cost for non -labor n/a
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt
grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal] 4,800 gallons of #1 fuel oil
Other n/a
iii. Peak Load n/a
iv. Average Load n/a
v. Minimum Load n/a
vi. Efficiency n/a
vii. Future trends n/a
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 4,800 gallons of #1 fuel oil
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.
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ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
Biomass
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] Approximately 172,000 BTUs
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons] 53 cords MC 30%, amount of pellets to be determined in
feasibility study
iv. Other
Project Cost
a) Total capital cost of new system n/a
b) Development cost n/a
c) Annual O&M cost of new system n/a
d) Annual fuel cost n/a
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 4,800 gallons
iii. Transportation
b) Current price of displaced fuel $5.87 as of 9/18/2012
c) Other economic benefits Potential local job creation, establishing market and use for
wood harvest residuals
d) Alaska public benefits Advancement of ecological and management objectives,
energy independence and reduction in fossil fuel emissions
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Power Purchase/Sales Price
a) Price for power purchase/sale Approximately $200/cord. Delivered price of pellets
unknown and will be determined
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years) Estimate only* for cordwood system is 7-8 years
Please fill out the form provided below
4.4.5 Proposed Biomass System Information
Please address the following items, if know. (For Biomass Projects Only)
What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). This is
a feasibility and conceptual design proposal that will be comparing the economic and social benefits
of cord wood, multifuel and pellet systems.
Efficiency of the biomass technology. Unknown-dependent on final selection
Thermal or electric application. Thermal
Boiler efficiency. Unknown-dependent on final selection
Displaced fuel type and amount. The tribe’s buildings utilize #1 Fuel Oil for heat and use
approximately 4,800 gallons/year. We anticipate that the selected boiler system will displace most if
not all of this fuel.
Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage.
Unknown- will be evaluated as part of study
Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage. According to 2008 Preliminary Feasibility Study for HELE in Kake the two buildings
would require approximately 53 cords of wood at a moisture content of 30% if a cord wood boiler was
selected
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the
biomass resource? The land surrounding the village is largely owned by the USFS, Kake Tribal
Corporation and Sealaska please see section 4.1 and attached maps for more detail
Inventory data. How much biomass is available on an annual basis and what types (species) are there,
if known? The forests surrounding Kake are primarily a mix of Hemlock and spr uce with Cedar and
pine species in lesser quantities. There are approximately 30,000 acres of forest that have been logged
in the past 50 years and considerable old-growth forest resources available as well. The primary
concern with local supply is not necessarily with sustained yield but with the economic viability of
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local harvests. Looking more closely at economically sustainable yields that dovetail with land
management goals for timber and ecosystem function will be the focus of the resource inventory work
included in this proposal. Please see section 4.1 for more information
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
Anticipated annual revenue (based on i.e. a Proposed Power 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
A wood boiler system would offset all or a significant portion of the fuel that is presently being
used to heat the tribe’s two facilities. These buildings currently consume approximately 4,800
gallons of fuel oil per year at a cost of $26,559 (@$5.63per gallon). A previous study conducted
for two community buildings (community center and the school) in Kake by Dan Parrent
(Preliminary Feasibility Assessment for High Efficiency Low Emission Wood Heating) found
that cord wood systems could displace a cumulative 30,250 gallons and save approximately
$127,525 in fuel related costs (not including non-fuel and O &M costs). Extrapolating from this
report we estimate that a single cord wood garn syst em for the two tribal buildings would use a
fuel equivalent of 53 cords and cost $10,600 (@ $200 per cord) for a potential annual gross
savings of $15,959. These numbers would be updated as part of the feasibility study to reflect
current fuel oil and pro cessed wood fuel costs in Kake.
There are numerous potential public benefits that could occur as a result of this proposal
including gathering important early baseline information that will help in determining the
appropriate application and sustainable s cale of wood heating conversions in Kake which will
further assist the community in an informed energy planning process. This feasibility study and
design process will provide a thorough economic and social cost comparison between locally
sourced woods and imported pellet fuel so that the tribe can choose a heating solution that best
aligns with its energy vision. If a cord wood or multi use system is determined viable over a
pellet system, it could provide a market and use for low grade wood as fuel and he lp advance the
ecological, management and economic objectives of the community. Demonstrating either a
local or imported renewable wood energy resource in a sustainable manner is invaluable to the
community as both will increase our resiliency and energy independence, save money and create
jobs.
An additional benefit to the deployment of sustainable and effective wood heat applications is
that taking care of heating loads in the near term will better prepare the community and the
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region for future renewable electricity supplies from an intertie and/or small scale hydro, wind
and solar integration. The Southeast Integrated Resource Plan highlight’s that a significant issue
facing the region is that as the cost of fuel has increased the region’s hydro capacit y has rapidly
diminished due to heating conversions from fuel oil to electricity. The community of Kake wants
to address heating loads so that future electricity supply sources will remain sufficient for
appropriate end use utilization and allow room for economic growth.
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 ma intenance 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 goal of this proposal is to determine the most sustainable wood heating system for the long term
benefit of the community. Included in the feasibility study are a resource analysis that will determine the
extent to which a sustainable and consistent supply resource exists and an economic analysis that examines
opportunities for local job creation for cord wood and pellet systems. We anticipate that savings from
avoided fuel costs will cover any increased operation and maintenance costs of a wood heat system that are
identified as part of the study
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.
Kake has set direction towards a workable and sustainable energy future with its locally developed and
published CEDS (Comprehensive Economic Development Strategies) Plan dating back to 2004, which
includes support of the two local governments – City of Kake and Organized Village of Kake; local school
system – Kake School District; local ANCSA village corporation – Kake Tribal Corporation, and local
non-profit fish hatchery – Kake Non-Profit Fisheries Corporation. Both OVK and the City have been
members of the Southeast Conference Energy Committee for many years. The third edition of the local
Kake CEDS plan is now under development and planned to be published before the end of 2012.
Alternative energy and woody biomass continue within the plan as high pr iorities and the OVK campus
demonstration project will be an attainable entry step into cordwood district heating within Kake.
Upon grant award, OVK will identify and assign a project leader to begin and systematically address this
application’s objectives and related tasks.
In addition to the CEDS committee, a community energy committee has recently been formed that
includes ten members with broad local and regional representation. The committee is in the process of
developing a stand- alone energy plan and has identified wood heat as a priority objective. Kake has also
been selected as one of five communities to receive technical assistance under the DOE’s START
program, and will be coordinating with the program team including honing the scope of the feasibility
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study and selecting a final contractor.
Upon grant award, OVK project leader will begin to systematically address this application’s objectives
and related tasks
SECTION 8– LOCAL SUPPORT
Discuss what local support or possible opposition there may be regarding your project. Include letters of
support from the community that would benefit from this project .
The Organized Village of Kake has received wide community support for this proposal including
endorsement from the Kake Community Ener gy Committee, which includes broad representation
from local and regional interests and entities including the tribe, school, municipality, tribal
corporation, IPEC, THRHA, SEACC, SEARC and the Gunnuck Creek Hatchery. Letters of
support from the tribal council, Keex’ Kwaan Construction (subsidiary of Kake Tribal Corp.), the
Department of Energy, Kake Schools, Tlingit & Haida Regional Housing Authority and the US
Forest Service are attached to this application.
SECTION 9 – GRANT BUDGET
Tell us how much you want 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.
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Please see narrative attached
Applications should include a separate worksheet for each project phase that was identified in section
2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitti ng, and
Construction). 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 prepa ring 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
(List milestones based on phase
and type of project. See
Milestone list below. )
$ $ $
Project Scoping and Contractor
Solicitation 9/2013 $2000 $ $1,000 $3,000
Detailed Wood Heat System 12/2013 $9,000 $ $9,000
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Assessment
Resource Assessment 9/2013 $9,700 $ $2,500 $12,200
Economic Assessment 1/2014 $7,000 $ $1,500 $8,500
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $2000 $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $25,700 $ $
Construction Services $ $ $
Other $ $ $
TOTALS $27,700 $ $5,000 $32,700
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. )
$ $ $
Conceptual Design and Final
Report 3/14 $3000 $ $3000
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $3000 $ $
Construction Services $ $ $
Other $ $ $
TOTALS $3000 $ $3000
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource identification
1. Project scoping and
contractor
solicitation.
1. Project scoping
and contractor
solicitation for
planning and
1. Confirmation that all
design and feasibility
requirements are
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and analysis
3. Land use, permitting,
and environmental
analysis
4. Preliminary design
analysis and cost
5. Cost of energy and
market analysis
6. Simple economic
analysis
7. Final report and
recommendations
2. Detailed energy
resource analysis
3. Identification of land
and regulatory issues,
4. Permitting and
environmental
analysis
5. Detailed analysis of
existing and future
energy costs and
markets
6. Assessment of
alternatives
7. Conceptual design
analysis and cost
estimate
8. Detailed economic
and financial analysis
9, Conceptual business
and operations plans
10. Final report and
recommendations
design
2. Permit
applications (as
needed)
3. Final
environmental
assessment and
mitigation plans
(as needed)
4. Resolution of land
use, right of way
issues
5. Permit approvals
6. Final system
design
7. Engineers cost
estimate
8. Updated economic
and financial
analysis
9. Negotiated power
sales agreements
with approved
rates
10. Final business and
operational plan
complete.
2. Completion of bid
documents
3. Contractor/vendor
selection and award
4. Construction Phases –
Each project will have
unique construction
phases, limitations, and
schedule constraints
which should be
identified by the
grantee
5. Integration and testing
6. Decommissioning old
systems
7. Final Acceptance,
Commissioning and
Start-up
8. Operations Reporting