HomeMy WebLinkAboutGrantApplication6Renewable Energy Fund Round 6
Grant Application
AEA 13-006 Application Page 1 of 26 7/3/2011
Mentasta Woody Biomass Community Facility
Space Heating Project AEA Round VI
Renewable Energy Fund Application
Mentasta Traditional Council
P.O. Box 6019
Mentasta, Alaska 99780
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Grant Application
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Table of Contents
Attachment #1 - Grant Application Round VI and Signature Forms
Attachment #2 – Village Map With Community Facilities
Attachment #3 – Council Authorizing Resolution
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Mentasta Traditional Council
Type of Entity: Tribal Government Fiscal Year End: 09/30/2012
Tax ID # 92-0069919 Tax Status: For-profit or XXX non-profit (
check one)
Mailing Address
P.O. Box 6019, Mentasta, Ak. 99780
Physical Address
1000 Mentasta Blvd., Mentasta, Ak.
99780
Telephone
907 291-
2319
Fax
907 291-2305
Email
mentasta@hotmail.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Angie David
Title
Tribal Administrator
Mailing Address
P.O. Box 6019, Mentasta, Ak. 99780
Telephone
907 291-
2319
Fax
907 291-2310
Email
mentasta@hotmail.com
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
XX A governmental entity (which includes tribal councils and housing authorities);
Yes
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
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 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached
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grant form. (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.
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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)
Community Facilities Woody Biomass Space Heating Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
Project will provide woody biomass space heat to the school, teen center, council offices and
post office which are clustered within the village center.
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.
Mentasta Village is located 6 miles off the Tok-Slana Cutoff of the Glenn Highway o the
west side of Mentasta pass, 38 miles southwest of Tok Junction. Mentasta lies at
approximately 62.931550° North Latitude and -143.792730° West Longitude. (Sec. 07,
T013N, R009E, Copper River Meridian.) Mentasta Lake is located in the Chitina
Recording District.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Mentasta Village.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind XX 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
Feasibility XX Construction and Commissioning
Conceptual Design
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Mentasta’s predicament, as is the case for most of rural Alaska, is its dependence on imported
expensive petroleum for space heating of community facilities. Mentasta’s community facilities
are centrally located and can be serviced by one woody biomass heating plant strategically
located adjacent to Mentasta’s clustered public facilities (see Map - Attachment II). The project
is estimated to cost $460,000 of Round VI funds and donated building space with estimated
value of $50,000 and will serve the school, teen center, clinic and tribal offices/post office
building and are expected to displace approximately 22,000 gallons of heating oil.
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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.)
Mentasta represents a typical rural Alaskan village attempting to make the transition to the
modern world while maintaining its peoples’ unique relationship with the local geography and
natural setting. The economy is uniquely Alaskan whereby the typical family maintains a mixed
cash/subsistence lifestyle and where high energy costs are threatening the very existence of
Mentasta and its people. This is because most rural Alaskan households will spend up to 40
percent of their annual income (cash) on energy compared to 4 to 6 percent for the average urban
household. Mentasta, as is the case for all of rural Alaska, is its dependence on imported
petroleum heating oil for space heating of essential community facilities and infrastructure which
is causing a significant drain of cash from the community and specifically from MTC’s
programs’ budgets. This cash drain on MTC programs lessens service delivery and the ability of
MTC to hire program staff.
This AEA Round 6 project application seeks to install one high efficiency woody biomass space
heating plant centrally located to Mentasta village’s clustered community facilities in order to
displace expensive fuel oil, save the community money, utilize locally available renewable
resources, and create local employment opportunities. From a forest fire perspective, there is
need to create wildfire prevention buffer zones around the village and to also thin the
surrounding forests. These prevention activities will provide significant free fire wood fuel for
the planned biomass plant and improve the safety of the village from forest fires.
Estimated Fuel Oil to be Displaced
This AEA Round 6 project is expected to displace imported heating oil as follows:
Gateway School at Mentasta (12,000 s.f.) - 15,000 gallons displaced at $5/gallon =
$45,000
Teen Center (2,400 s.f.) - 1,000 gallons displaced at $5/gallon = $ 5,000
Combined Council office and Post Office building (3,500 s.f.) - 3,500 gallons displaced
at $5/gallon = $17,500
Village Council Clinic (2,500 s.f ) - 2,500 gallons displaced at $5/gallon = $12,500
Total annual fuel oil displaced is 22,000 gallons = $110,000 of cash savings
Savings Conclusion
Note: Mentasta Village Council (MTC) is currently is paying $4.50 per gallon for the bulk
purchase of community facility heating fuel oil. The annual fuel oil consumption listed above
was calculated from Mentasta Village Council’s 2011 fuel purchase invoices.
Expected Net Savings Using Simple Payback Analysis
This AEA Round 6 application seeks funding to install a high efficiency boiler heating plant
sized to meet the ninety percent of the heat load of the four community facilities listed above.
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Discussions and data from the City of Tanana, who has five years of GARN operational
experience, show that in operation, the GARN boilers are delivering an equivalent of
approximately 100 gallons of fuel oil per cord of seasoned wood burned. This conversion figure
suggests that Mentasta would need to purchase 220 cords of seasoned fuel wood annually to
meet the heating loads experienced in 2011 for the four community facilities. Seasoned cord
wood at Mentasta sells for $200 per cord and following simple payback analysis shows:
Fuel oil cost @ $5/gallon x 22,000 gallons per year = $110,000
Cord wood @ $200/cord x 220 cords per year = $ 44,000
Gross annual savings = $ 66,000
Simple Payback (years)* = 7.7 years
*Note: Payback is estimated based on this AEA funding request for $460,000 and MTC’s
estimated contribution of its existing metal storage garage (for the heating plant structure – value
estimated at $50,000) totaling $510,000 to establish a functioning biomass heating plant at
Mentasta.
At this time, MTC is keeping boiler selection open to future consideration of all systems during
the final design and engineering to be conduct as past of this Round VI application and project
development process.
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.
AEA Round 6 funds in the amount of $460,000 are requested and the MTC will contribute
approximately $50,000 of the village’s existing metal storage garage.
Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $510,000
Sources
Tasks
AEA
Round 5
MTC
Metal
Garage
Donated
Total
1. Building shell and foundation $ 70,000 $ 50,000 $120,000
2. Finalize biomass heating plant design $ 38,000 $ 38,000
3. Procure boiler system & hardware $132,000 $132,000
4. Install boilers, plumbing & utilidors 160,000 $160,000
5. Train workers to operate plant $ 5,000 $ 5,000
6. Freight $ 35,000 $ 35,000
8. Administration/Project Management $ 20,000 $ 20,000
Total: $460,000 $50,000 $510,000
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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. $460,000
2.7.2 Cash match to be provided $
2.7.3 In-kind match to be provided $ 50,000
2.7.4 Other grant applications not yet approved $
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $510,000
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)
$510,000
2.7.7 Estimated Direct Financial Benefit (Savings) $66,000 annually
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.)
$ Wood Harvesting Jobs
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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.
MTC will utilize its existing construction manager employee, Rex Goolsby, who is the Project
Manager for MTC’s multi-purpose building project which is currently under construction and
which will have installed its own wood boiler system separate from this Round VI application.
Mr. Goolsby has much biomass experience including:
Construction Manager for the Tok-based Gateway School District’s $5,000,000 biomass
space heating and electrical co-generation project (CHP).
Project Manager for the Galena-based Yukon Koyukuk Elders Assisted Living Facility
biomass installation project.
Project manager for the University of Alaska Fort Yukon biomass project.
Interior Aleutians Campus biomass trainer under the campus’ Construction Trades
Training program.
Mr. Goolsby has successfully managed construction of the above biomass projects which will
give him the expertise to successfully carry out the Mentasta Woody Biomass Community
Facility Space Heating Project.
Contact information: rex.goolsby@gmail.com
(907) 883-3333 land line
(907) 940-5334 cell
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
Tasks – Year One Q1
7/1/13
9/30/13
Q2
10/1/13
12/31/1
3
Q3
1/1/14
3/31/14
Q4
4/1/14
6/30/14
Q5
7/1/14
12/31/14
1. Grant agreement in-place X
2. Finalize biomass heating plant design X
3. Procure boiler system and hardware X
4. Construct building shell and foundation X X X
5. Install plumbing utilidors to buildings X X
6. Train workers to operate plant X
7. Reports to AEA X X X X X
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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.
MTC has consulted with the City of Tanana and the Gulkana Village Council who both
constructed GARN and Econoline biomass space heating plants serving their community
facilities. Both entities provided MTC with their cost of construction experiences and their
opinions of contractors and engineering firms. MTC has also consulted with Alaska Heating
Technologies, Inc who is the Statewide GARN sales representative and with CE2 Engineering.
Both firms have provided valuable systems sizing information and cost estimates. As mentioned
above, MTC will not select the type and brand of boiler system until final design is completed as
part of this Round VI scope of work.
In 2007, MTC had a reconnaissance and feasibility study produced which recommended
targeting the village’s clustered community facilities. As committed in the attached MTC
resolution, MTC will be contributing 1,000 s.f. of its existing metal garage building for housing
of the planned biomass heating station.
MTC has allocated sufficient funding in this AEA Round 6 application to enable it to prudently
design and engineer efficient implementation of a single biomass space heating plant serving the
targeted four clustered community facilities.
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.
MTC will provide quarterly construction progress reports to the AEA and will employ Rex
Goolsby as the on-site Project Manager who will directly responsible for monitoring of project
progress. Mr. Goolsby will report project progress to MTC’s Tribal Administrator, Angie David
who will be responsible for reporting to AEA on project progress and submission of financial
draws. MTC is annually externally audited and contracts with a profession accountant for regular
financial accounting services.
3.5 Project Risk
Discuss potential problems and how you would address them.
The project schedule is time lenient and may be able to be sped-up depending on grant
agreement approval process. No potential problems are identified at this time.
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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.
Mentasta has significant forests surrounding the village which can be accessed for fuel wood.
Most of these forests surrounding Mentasta are owned by the ANCSA regional corporation,
Ahtna, Inc. and Ahtna has a policy of supporting village-based community development which
includes making available forest resources for village-based activities.
In addition, Mentasta is located 38 miles from the Upper Tanana Valley Region which has
experienced a number of large forest fires in recent years and which resulted available thousands
of acres of standing dead trees for biomass utilization activities. In addition, the State Forester at
Tok has identified the need to conduct extensive forest thinning as a wildfire prevention strategy
which will also open-up an immense biomass resource availability for biomass utilization. These
cord wood biomass resources can be purchased at $150 cord and MTC has budget $50/cord
transportation expenses to deliver from Upper Tanana Valley cord wood to Mentasta.
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.
Mentasta currently utilizes oil-fired hydronic boilers and space heat distribution systems (base
board radiators and heat loops) to heat the four targeted community facilities and a result, utilize
heating fuel oil as follows
Gateway School at Mentasta(12,000 s.f.) 15,000 gallons displaced at $5/gallon = $45,000
Teen Center (2,400 s.f.) 1,000 gallons displaced at $5/gallon = $ 5,000
Combined Council office and Post Office building (3,500 s.f.) 3,500 gallons displaced at
$5/gallon = $17,500
Village Council Clinic (2,500 s.f ) 2,500 displaced at $5/gallon = $12,500
All four community facilities are clustered and Project Manager, Rex Goolsby, has estimated total
utilidor distance to service them from a centrally located biomass space heating plant to be 1000
lineal feet in total. The existing heating systems can be easily tied into the planned biomass
utilidor lines and will act as back-up heating system if for whatever reason the biomass plant is
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not servicing the targeted facilities.
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.
Mentasta community facilities are entirely heated with imported heating fuel oil. There is no
village-based power plant. The targeted community facilities’ oil-fired boilers will be kept in-
place as back-up heating systems.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As discussed above, the forests surrounding Mentasta and biomass resource in the Upper Tanana
Valley Region has almost an unlimited supply of fire damaged standing trees whose usefulness is
limited to use as a biomass fuel source. In addition, Upper Tanana Region will be experiencing
wild fire thinning plans call for removal of thousand of cords of trees which will be made
available for local utilization – mainly biomass heating.
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
MTC’s Project Manager, Rex Goolsby, has estimated and sized the planned biomass boilers,
pumps and utilidor piping to efficiently distribute heat energy to the targeted four community
facilities. Final design and work budgeted in this Round VI application will refine these
estimates. The Mentasta biomass space heating plant will include the following:
1,000 sf of insulated steel garage building space to house the selected boilers.
Selected biomass boilers based on final engineering.
Pumps, valve, heat exchanger and control will be installed within the building.
1000 feet of insulated insulated “pex” carrier pipe which will distribution the generated
biomass heat via glycol to the four community facilities.
The final selected biomass system is estimated to produce a maximum of 2,100,000 BTUs per
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hour which has been estimated to be 150% of anticipated maximum heat load of the targeted four
community facilities. Integration strategy will be for the biomass glycol lines to be tied into the
using oil-fired boilers so that these boilers remain hot and as result do not turn-on but still
distribute the biomass heat throughout the existing heat distribution system (radiators).
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.
Ahtna, Inc. owns the forest surrounding Mentasta which will be available for Mentasta-based
biomass activities.
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
Only a fire marshal permit will be required and funds have been allocated to cover this cost under
the administration category of the project budget.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
The selected site is within the Mentasta subdivision (see Map – Attachment #2) and this site has
an existing new-like metal garage which 1,000 s.f. of floorspace will be donated to this Round VI
project.
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
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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
AEA Round VI funds in the amount of $460,000 are requested and the MTC will contribute
approximately $50,000 of the village’s existing metal storage garage to the project.
Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $510,000
Sources
Tasks
AEA
Round 6
MTC
Metal
Garage
Donated
Total
1. Building shell and foundation $ 70,000 $ 50,000 $120,000
2. Finalize biomass heating plant design $ 38,000 $ 38,000
3. Procure boiler system & hardware $132,000 $132,000
4. Install boilers, plumbing & utilidors 160,000 $160,000
5. Train workers to operate plant $ 5,000 $ 5,000
6. Freight $ 35,000 $ 35,000
8. Administration/Project Management $ 20,000 $ 20,000
Total: $460,000 $50,000 $510,000
Budget Narrative Discussion
1. Building shell and foundation – MTC existing new-like metal building will house the planned
biomass boilers was cost-estimated based on the cost of construction of the Gulkana’s GARN
heating station. The building will provide 1,000 square foot in size space and is estimated at a
total cost of $50,000 of which MTC will be donating to the project. Benefits of utilizing this
building space for the Mentasta biomass project is that the building design includes 14’ ceilings in
order to accommodate overhead piping runs and hardware. Also, additional expenses is planned
for in installing a high-strength concrete foundation in order to accommodate the heavy weight of
the biomass boilers and related thermal storage.
The $70,000 allocated from this AEA Round VI budget under this category will cover the
remaining building materials needed, foundation installation and labor to complete the metal
garage building space to suitable biomass heating plant space. MTC has a local labor force
trained by the University’s Interior Aleutians Campus in construction trades technology and MTC
will conduct force account employment of these workers to modify the metal garage building
under the direct supervision of Project Manager, Rex Goolsby. A portion of the Project Manager
salary is included in this category.
2. Finalize biomass heating plant design – MTC will issue a RFQ to obtain the mechanical
engineering services of a firm qualified and experienced in the final design of biomass heating
station heat distribution system and integration into the heating existing systems of the targeted
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four community facilities.
3. Procure boiler system & hardware - MTC will procure the biomass boilers and related
hardware following State of Alaska procurement regulations. A portion of the Project Manager
salary is included in this category.
4. Install boilers, plumbing & utilidors – Funds have been allocated to procure and contract with a
qualified mechanical installation firm to install the support plumbing system to distribute the heat
from the biomass boilers. Funds are also included in this category for procurement of related
pumps, exchangers, valves and controls.
5. Train worker to operate plant – Funds have allocated for travel, per diem and wages for MTC
maintenance workers to travel to Gulkana and obtain hands-on biomass system operational
training.
6. Freight – Funds have been allocated to cover the cost of shipping the selected boilers, hardware
and building materials to Mentasta.
7. Administration/Project Management – Funds have been allocated to cover reporting, financial
Management of grant fund and Fire Marshal permitting.
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.)
MTC currently employs a full-time facility maintenance worker and his duties will be expanded
to fire the boilers as needed on a daily basis. This additional work-load is expected to take one
hour per day based on interviews with the Gulkana biomass operators who has been operating
similar systems for almost four years. MTC existing maintenance worker budget and funding
sources will cover the maintenance worker’s daily firing of the system.
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
Delivered heat will go to MTC owned facilities and the Alaska Gateway School’s District’s
school at Mentasta and will thereby reduce operational budget for purchase of imported heating
fuel oil. The school district has agreed to purchase delivered biomass heat from MTC at a rate of
20% less than the current price of heating oil. This contract price will be negotiated annually and
this approach is modeled after the BTU sales agreement between Tetlin Village Council and the
Alaska Gateway School District.
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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
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Unlimited forest fuel resource available from
surrounding forest at Mentasta and the nearby
Upper Tanana Valley Region.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Cord wood.
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other Four community facilities space heating boilers – 8
each
ii. Rated capacity of generators/boilers/other Boilers range in size from 130,000 BTUs per hour
to 1.2 million BTUs in size (school)
iii. Generator/boilers/other type N/A
iv. Age of generators/boilers/other 10 to 20 years old.
v. Efficiency of generators/boilers/other Low 70%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $30 per day.
ii. Annual O&M cost for non-labor 220 cords of firewood.
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] N/A
ii. Fuel usage
Diesel [gal]
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] 22,000 gallons
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] n/a
iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] n/a
vi. Other n/a
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]
n/a
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] n/a
ii. Heat [MMBtu] 2.1 million 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] 220 cords
iv. Other
Project Cost
a) Total capital cost of new system $510,000
b) Development cost n/a
c) Annual O&M cost of new system $10,950 ($30/day for operator)
d) Annual fuel cost $44,000 for 220 cords.
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 22,000 gallons of heating fuel oil.
iii. Transportation
b) Current price of displaced fuel $99,000
c) Other economic benefits Creation of wood harvesting jobs.
d) Alaska public benefits Creation of wood harvesting jobs.
Power Purchase/Sales Price
a) Price for power purchase/sale n/a
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Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.6
Payback (years) 7.7
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).
Response: Cord word boiler will be utilized.
Efficiency of the biomass technology. Response: Expected selected system to have a 85%
conversions efficiency with use of thermal storage.
Thermal or electric application. Response:
Boiler efficiency. Response: 85%
Displaced fuel type and amount. Response: Number one heating fuel oil.
Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture
percentage. Response: 220 cords.
Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage. Response: 220 cords.
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource? Response: Ahtna, Inc. owns the forests surrounding
Mentasta and has verbally agreed to make forest resources available for this project. Also,
Mentasta has access to the Upper Tanana Regions’ large cord woo industry and can
purchase cord wood at $150/cord plus $50/cord delivery charge.
Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known? Response: Spruce, aspen and birch are available and the inventory is
under review.
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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
Response: This project is estimated to generate $66,000 of displaced fuel oil savings annually or
$1,320,000 of savings over a 20 year period. Operator and fuel wood harvesting jobs will also be
created.
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
MTC will operate the Mentasta biomass space heating plant as part of its on-going community
facility and utility operations. MTC owns and operates all community facilities at Mentasta except
for the school and electrical distribution grid. With savings generated by this project, MTC will
establish a replacement reserves fund to cover on-going equipment, repairs, replacement and also
fire insurance. As mentioned, MTC existing full-time maintenance worker will operate the
biomass space heating plant on a daily basis and there will be no additional expenses for his
involvement. As AEA’s requests, MTC commits to reporting the savings and benefits of this
project. Revenue will be gained through displacement of expensive fuel oil at Mentasta
community facilities and y sale of biomass BTU to the Alaska Gateway School District at an
agreed rate of 20% less the going fuel oil price.
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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.
MTC has worked with the villages of Tanana and Gulkana to gain valuable knowledge about
biomass space heating systems from both an operational and construction standpoint. MTC has
also interacted with Alaska Heat Technologies and received valuable system design input and
cost estimating. MTC has been in discussions regarding this project concept for more than three
years and is ready to start construction in 2013 depending project funding availability. A biomass
feasibility studies was completed in 2007 and showed strong savings by supplanting imported
expensive heating fuel oil with inexpensive cord word.
As mentioned in this application, MTC has committed through the attached resolution (see
Attachment #3) to commit an estimated $50,000 of metal garage building space to the project.
SECTION 8– LOCAL SUPORT
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.
MTC is the sole governing body of Mentasta village and has committed to this project through
the attached resolution. Also, the Alaska Gateway School District has verbally supported this
project and agreed to purchase cord wood fired BTU at 20 percent less than the current cost of
number heating oil.
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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.
AEA Round VI funds in the amount of $460,000 are requested and the MTC will contribute
approximately $50,000 of the village’s existing metal storage garage (1,000 s.f.) to the project.
Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $510,000
Sources
Tasks
AEA
Round 6
MTC
Metal
Garage
Donated
Total
1. Building shell and foundation $ 70,000 $ 50,000 $120,000
2. Finalize biomass heating plant design $ 38,000 $ 38,000
3. Procure boiler system & hardware $132,000 $132,000
4. Install boilers, plumbing & utilidors 160,000 $160,000
5. Train workers to operate plant $ 5,000 $ 5,000
6. Freight $ 35,000 $ 35,000
8. Administration/Project Management $ 20,000 $ 20,000
Total: $460,000 $50,000 $510,000
Budget Narrative Discussion
1. Building shell and foundation – MTC existing new-like metal building will house the planned
biomass boilers was cost-estimated based on the cost of construction of the Gulkana’s GARN
heating station. The building will provide 1,000 square foot in size space and is estimated at a
total cost of $50,000 of which MTC will be donating to the project. Benefits of utilizing this
building space for the Mentasta biomass project is that the building design includes 14’ high
ceilings in order to accommodate overhead piping runs and hardware. Also, additional expenses
are planned for in installing a high-strength concrete foundation in order to accommodate the
heavy weight of the biomass boilers and related thermal storage.
The $70,000 allocated from this AEA Round VI budget under this category will cover the
remaining building materials needed, foundation installation and labor to complete the metal
garage building space to suitable biomass heating plant space. MTC has a local labor force
trained by the University’s Interior Aleutians Campus in construction trades technology and
MTC will conduct force account employment of these workers to modify the metal garage
building under the direct supervision of Project Manager, Rex Goolsby. A portion of the Project
Manager salary is included in this category.
2. Finalize biomass heating plant design – MTC will issue a RFQ to obtain the mechanical
engineering services of a firm qualified and experienced in the final design of biomass heating
station heat distribution system and integration into the heating existing systems of the targeted
four community facilities.
3. Procure boiler system & hardware - MTC will procure the biomass boilers and related
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hardware following State of Alaska procurement regulations. A portion of the Project Manager
salary is included in this category.
4. Install boilers, plumbing & utilidors – Funds have been allocated to procure and contract with
a qualified mechanical installation firm to install the support plumbing system to distribute the
heat from the biomass boilers. Funds are also included in this category for procurement of related
pumps, exchangers, valves and controls.
5. Train worker to operate plant – Funds have allocated for travel, per diem and wages for MTC
maintenance workers to travel to Gulkana and obtain hands-on biomass system operational
training.
6. Freight – Funds have been allocated to cover the cost of shipping the GARN boilers, hardware
and building materials to Mentasta.
7. Administration/Project Management – Funds have been allocated to cover reporting, financial
Management of grant fund and Fire Marshal permitting.
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
Permitting, 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 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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
Confirmation that all design
and feasibility
requirements are
complete.
09/30/2013 $20,000 $0.00 $0.00 $20,000
Completion of bid documents 09/30/2013 $18,000 $0.00 $0.00 $18,000
Contractor/vendor selection
and award 09/30/2013 $50,000 $0.00 $0.00 $50,000
Construction Phases 03/31/2012 $372,000 $0.00 $50,000 $422,000
Integration and testing 06/30/2124 $0.00 $0.00 $0.00 $0.00
Final Acceptance,
Commissioning and
Start-up 06/30/2014 $0.00 $0. $0.00 $0.00
Operations Reporting On-going $ $ $
$ $ $
$ $ $
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$ $ $
$ $ $
TOTALS $460,000 $ $510,000
Budget Categories:
Direct Labor & Benefits $130,000 $ $130,000
Travel & Per Diem $ $ $
Equipment $130,000 $ $50,000 $180,000
Materials & Supplies $100,000 $ $100,000
Contractual Services $100,000 $ $100,000
Construction Services $ $ $
Other $ $ $
TOTALS $460,000 $ $50,000 $510,000
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and
Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource
identification 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
1. Project scoping
and contractor
solicitation.
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
1. Project scoping
and contractor
solicitation for
planning and
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
1. Confirmation that all
design and feasibility
requirements are
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
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Mentasta Traditional Council
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Nora David First Chief
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Nora David First Chief
Grantee Contact Information:
Mailing Address:
P.O. Box 6019
Phone Number:
(907) 291-2319
Fax Number:
(907) 291-4497
E-mail Address:
MentastaTraditionalCouncil@yahoo.com
Federal Tax ID #: 92-0069919
Please submit an updated form whenever there is a change to the above information.
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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 separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Letters demonstrating local support per application form Section 8.
C. An electronic version of the entire application on CD per RFA Section 1.7.
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. 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 Nora David
Signature
Title First Chief
Date September 21, 2012