HomeMy WebLinkAboutTananaGrantApplication6Renewable Energy Fund Round 6
Grant Application
AEA 13-006 Application Page 1 of 27 7/3/2011
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round 6 of the Renewable Energy Fund. An electronic version of the Request for
Applications (RFA) and this form are available online at:
http://www.akenergyauthority.org/RE_Fund-6.html
If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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Grant Application
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Tanana
Type of Entity: Fiscal Year End: June 30, 2012
Tax ID # 92-0068214 Tax Status: For-profit or XXXX non-profit ( check one)
Mailing Address
P.O. Box 249
Physical Address
249 Second Avenue, Tanana, Ak. 99777
Telephone
(907) 978-5848
Fax
Email
beartanana@gci.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Alfred “Bear” Ketzler
Title
City Manager
Mailing Address
1154 Park Avenue, Fairbanks, Alaska 99777
Telephone
(907) 978-
5848
Fax
(907) 374-5001
Email
beartanana@gci.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
XXX A local government, or
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
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
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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)
Tanana Solar Domestic Hot Water Heating Project
2.2 Project Location – City of Tanana Senior Housing Complex and Tribal Assisted
Living Housing at Tanana, Alaska.
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Tanana, Alaska located at 65 degrees, 10’, 23” N and 152 degrees, 06’ 00” W, Township 4,
Range 22 West F.M. Alaska Fort Gibbons Recording District.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project. Primarily elder residents of Tanana Village.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind 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
XX 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
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The Tanana Solar Public Facilities Heating Project seeks to implement the market transformative
benefits of combining biomass space heating technologies currently being installed at Tanana’s
public facilities with solar thermal collectors. This Round 6 Renewable Energy Fund application
has been revised since its original submission during Round 5 and limit solar thermal application
to best “low hanging fruit at Tanana which is the large domestic hot water demand at the Tanana
Tribal Elders Residential complex and the City’s Senior housing four-plex.
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The synergistic benefits of the village existing biomass thermal storage capacity with solar
thermal collectors will serve to result in reduced imported petroleum consumption and also serve
to optimize operation of the biomass boilers currently being installed at Tanana.
Heat energy is, by far, the greatest financial burden facing Alaskans, and particularly those in
rural Alaska. It is also the most critical as heat during Alaska’s extreme winters is a matter of
survival. Many rural communities in Alaska are moving in the direction of biomass as an
alternative to fuel oil for heat energy generation. Tanana has become a model in Alaska for
demonstrating the effective use of renewable energy to reducing heat energy operational costs.
Tanana was one of the first villages in Alaska to incorporate the use of GARN biomass boilers
for offsetting the high expense of fuel oil for generating hot water in the community washeteria.
In 2011, as a part of a major biomass expansion project, systems are being installed in numerous
commercial and residential scale buildings.
Solar thermal is an excellent complement to the biomass boilers. During the winter months the
heat energy generated by the biomass boilers offsets a substantial amount of the fuel oil normally
required. The cordwood fuel source also allows many of the operating costs to remain in the
community since the supply of the cordwood and manpower required to feed and boilers is local.
During the summer the biomass boilers are a less desirable alternative. The focus and energies of
the community are diverted to essential traditional cultural activities. The solar thermal, which is
a passive heat energy source that can operate largely unattended, allows those activities to
continue uninterrupted. Thus it is an excellent companion to the biomass and can contribute
substantially to the heat energy requirement for at least nine months of the year. The combination
of the two heat energy sources virtually eliminates the dependency on fuel oil as the heat energy
source.
While used extensively throughout other parts of the U.S. and the world for years, the use of
solar thermal technology as an alternative to fuel oil is relatively new. Equally new to Alaska is
the concept of solar thermal in conjunction with the biomass systems. The City believes that the
integration of solar thermal is essential to the continued development and expansion of the
biomass program in Alaska. The resulting combination system is more compatible with the life
styles and cultural activities of people in rural Alaska, further reduces the ongoing operational
costs of the heat energy system, and reduces the long term impact on the area biomass resource
due to the system operation.
For this project, the City of Tanana has selected two buildings in Tanana that have biomass
systems – the tribal elders complex and City’s senior residential four-plex housing unit. This mix
represents a good cross section of multi-residentially oriented systems where domestic hot water
usage is very high. Due to the highly variable temperatures found in the biomass systems, the
City has selected indirect, glycol based fltaplate collectors with variable speed circulation pumps
and supplemental heat storage tanks for the solar thermal systems. In the City’s senior housing 4
-plex, the integral storage of the GARN boiler will be utilized. In the tribal elder housing
complex, that is utilizing Econoburn gasification boilers with limited internal storage capacity,
supplemental storage tanks will be installed in conjunction with the solar thermal.
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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.)
Recent installations of high efficiency residential and public facility solar thermal collection
systems in Alaska have demonstrated that significant solar thermal energy can be captured from
March through October and can provide significant quantities of heat to for domestic hot water
generation and also for supplement of space heating systems. The financial benefits relate to
displacement of usage of expensive petroleum-fired heating systems and can provide annual
operational savings to the Tanana heating system(s) operators.
Key to combining high efficiency biomass heating systems with solar thermal collector systems
is that both share similar temperature operation ranges and as a result, can also share common
thermal storage capacity which thereby lessen the upfront capital investment needed.
The City of Tanana has utilized the technical assistance services of Arctic Sun Systems who ran
a solar thermal modeling program called “Poly Sun” to produce estimated thermal energy gained
through solar thermal collector installation at the two (2) project sites which estimated the Net
Present Value for each planned installation as follows:
Tribal Elders Complex
Due to the 8 residential units and large commercial kitchen at this facility, solar thermal could
make a positive contribution to the domestic hot water (DHW) supply heating expenses and
provide a reasonable payback. The space heating system, as designed, is more complex and less
efficient to supplement with solar. As a result, the focus at the Tribal Complex is to utilize solar
thermal to offset the facility’s domestic hot water (DHW) expenses. Specifically, we propose to
install 8 - 4x10 collectors linked to 400 gallons of new storage capacity which will preheat the
DHW supply. The system will include a drain-back tank so the performance of the collectors can
be maximized in relation to the storage capacity. This improves shoulder-season collection
capabilities and returns more energy per dollar expended. We will also utilize high-performance
insulation on the plumbing to make sure we retain the maximum amount of the BTUs collected.
Our experience with this style of system is it outperforms the standard installation and provides a
better return on investment. The attached Polysun schematic (see Attachment #4) illustrates the
flow and quantity of energy in the proposed system. It differs from the actual proposal in that it
displays only one preheat tank and we will be utilizing two-200 gallon tanks. Also, the
schematic does not show the drain-back tank. Neither of these items change the energy
calculations in that whenever the system shuts down and drains to the tank, the model is
calculating no energy production because of stagnation. Consequently, the production numbers
remain accurate. The size of this system is somewhat smaller than the one the City considered
previously in our Round 5 application. Our current proposal is focused on providing energy only
to the systems that can make efficient use of the lower temperature solar thermal supply. It is
designed to maximize the utilization of the energy captured by limiting the scope of the
application. In other words, we are simply picking the low hanging fruit instead of building a
larger, less-efficient system that would provide a much poorer return on the AEA’s investment.
The total cost for this system installed is $43,800. The Polysun modeling estimates this system
will produce 47,713,600 Btu annually and displace the use of 434 gallons of diesel and 18 kWh
of electricity. This will result in a savings of $2,402 the first year, and a simple payback for the
system of 13 years.
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Grant Application
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City Senior Housing Four- plex
The analysis of the senior housing 4-plex is a little more straightforward and provides the best
return. We propose to utilize 8 each 4’x10’ collectors to heat the storage tank which is integral to
the installed Garn boiler (which is funded by the U.S. DOE source). A drain-back tank will be
incorporated to ensure there are no episodes of overheating. Again, this allows the system to
maximize collection of energy for a longer period, and is inexpensive insurance against
stagnation overheating the collectors and damaging or degrading the glycol. The Garn would not
need to be fired during much of the year. This would maximize the exchange of heat from the
solar system to the tank, and improve the total efficiency over previous designs. The number of
solar panels proposed would essentially eliminate the need for the backup OM180 oil boiler to
fire for much of the year, and dramatically reduce its run time in the shoulder seasons. The
attached schematic (see Attachment #5) illustrates the basic design and energy flow. The total
cost for this system installed is $37,900. Modeling this system estimates it will produce
52,458,500 Btu annually, displacing 478 gallons of heating fuel. In actuality, the solar system
will displace a combination of oil and wood in that the OM180 will be utilized at a greatly
reduced level for DHW, and the Garn will require fewer fires. However, the Polysun modeling
is limited to one fuel source, so the numbers in this report reflect the solar energy produced
displacing comparable energy supplied by heating oil. The model estimates $2,630 will be saved
in the first year, and the simple payback will take just 11 years.
Project Costs:
Tribal Elders Complex:
Material $23,035
Freight $ 1,386
Labor $16,409
Travel, room $ 2,970
Total $43,800
Senior Housing:
Material $18,293
Freight $ 985
Labor $15,867
Travel, room $ 2,755
Total $81,700
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 City of Tanana is requesting $81,700 of Round 6 funding in contrast to last year’s Round 5
request of $359,000 which proposed to fund solar thermal installation at our locations. This
funding will be used to procure high efficiency solar thermal collectors, mounting hardware and
related plumbing interface hardware to connect the solar systems to new thermal storage at the
Tribal Elders Complex and into the existing biomass thermal storage capacity at the City’s
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Grant Application
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Senior Housing Four-Plex. The City has utilized federal Department of Energy Efficiency
Conservation Block Grant (DOE EECBG) funding to install biomass space heating system at the
City Senior Housing project site which includes large thermal storage capacity and integration of
the biomass thermal storage into each building oil-fired system. As a result, the City is investing
DOE EECBG funding as following:
City Senior Housing 4-Plex: $50,000 (US DOE funding)
This AEA Renewable Energy Round 5 project will benefit by not needing to pay for thermal
storage capacity and interface hardware into the oil-fired heating systems at this project site
which is estimated to have an in-kind value contributed to this AEA project in the amount
$50,000.
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. $81,700
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) $131,700
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)
$81,700
2.7.7 Estimated Direct Financial Benefit (Savings) $5,032 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.)
$
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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.
Bear Ketzler, City Manager, will manage construction and installation of this project at the four
sites. Jeff Weltzin, Project Director, will manage procurement, finances and reporting.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Schedule comments: Due to the fact that installation of the biomass systems will be completed
by the end of 2013, installation and tie-in of the planned solar thermal systems can be conducted
and made operational by the end of calendar year 2013. Monitoring will continue into the future
and as will reporting to AEA on system performance.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
1. Grant agreement in-place Finalize milestones and tasks. 7/1/13 7/31/13
2. Finalize solar heating
collectors design
Conduct, site solar measurements to
optimize panel(s) placement. 8/1/13 8/15/13
3. Install solar collectors Install mounting hardware, panels, thermal
storage, pumps and accessories.. 9/1/13 9/30/13
4. Monitor system(s)
performance
Install but meters with simple data logger at
each site and record solar BTUs generated. On-
going
On-
going
5. Evaluation reporting to AEA Send quarterly reports to AEA. On-
going
On-
going
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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.
The City of Tanana will follow State of Alaska procurement regulations to competitively procure
The two (2) solar thermal systems described in this AEA Round 6 application and monitoring
equipment. The City will be using Arctic Sun for equipment supply and installation. Arctic Sun,
LLC is a full service, turn-key renewable energy company serving the entire state of Alaska. In
times of ever increasing energy costs, we provide solutions through innovative renewable energy
systems and ultra-efficient building products. We offer a building-wide holistic design approach
to maximize the potentials of each individual component and overall building performance.
Arctic Sun is a subsidiary of REINA, LLC and frequently partners with them on complete
building projects.REINA has built a reputation as one of interior Alaska's leaders in residential
home design and construction, with a passion for energy efficiency and a strong focus on
excellence. Specializing in homes that surpass AHFC's 5 star plus rating and are built to Energy
Star, LEED and the NAHB Green Building Standards, REINA,LLC builds healthy and highly
efficient homes designed to be sustainable in our climate for generations to come. REINA’s
mission is to develop and build sustainable northern shelters that are powered solely by
renewable energy sources and require up to 90% less heating and energy than a conventional
building. REINA,LLC is incorporating the European super-insulated “Passiv Haus” standard into
their designs and building practices, and built the first two NET ZERO Homes in interior
Alaska.REINA’s hallmark is creating healthy, comfortable and beautiful living spaces with
radical reduced energy consumption.Both Arctic Sun and REINA are owned and operated by
Thorsten Chlupp, an internationally recognized leader in energy efficiency and sustainability for
buildings. Thorsten has lectured all over Alaska, the lower 48 and internationally. He has
participated in a variety of research projects with the Cold Climate Housing Research Center and
his home is an ongoing project, demonstrating the cutting edge technology of how to live
healthfully and sustainably in the far north.Karl Kassel is the General Manager of Arctic Sun and
has been a hobbyist in renewable energy for more than 40 years. His previous experience as a
general contractor and his passion for economical green energy enable him to design building-
wide integrated systems for highest performance. His off-grid home showcases the epitome of
what can be accomplished by integrating solar PV, wind, solar thermal and a masonry heater into
a passive solar designed envelope.
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.
A key component of this project is to monitor the two (2) systems performance and make these
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experiences and data available to the general public and the AEA. The City’s Department of
Energy Efficiency Conservation Block Grant (DOE EECBG) project provides funding for the
City to conduct outreach and education to other rural villages on energy efficiency and
renewable energy and the City will incorporate this project’s outcomes into DOE EECBG
educational outreach activities.
3.5 Project Risk
Discuss potential problems and how you would address them.
This solar thermal installation involves minimal site preparation in that the installations will
utilize the existing roofs for the mounting platforms.
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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.
Solar thermal is an excellent complement to the biomass boilers. During the winter months the
heat energy generated by the biomass boilers offsets a substantial amount of the fuel oil normally
required. The cordwood fuel source also allows many of the operating costs to remain in the
community since the supply of the cordwood and manpower required to feed and boilers is local.
During the summer the biomass boilers are a less desirable alternative. The focus and energies of
the community are diverted to essential traditional cultural activities. The solar thermal, which is
a passive heat energy source that can operate largely unattended, allows those activities to
continue uninterrupted. Thus it is an excellent companion to the biomass and can contribute
substantially to the heat energy requirement for at least nine months of the year. The combination
of the two heat energy sources virtually eliminates the dependency on fuel oil as the heat energy
source.
While used extensively throughout other parts of the U.S. and the world for years, the use of solar
thermal technology as an alternative to fuel oil is relatively new. Equally new to Alaska is the
concept of solar thermal in conjunction with the biomass systems. We believe that the integration
of solar thermal is essential to the continued development and expansion of the biomass program
in Alaska. The resulting combination system is more compatible with the life styles and cultural
activities of people in rural Alaska, further reduces the ongoing operational costs of the heat
energy system, and reduces the long term impact on the area biomass resource due to the system
operation.
The solar resource in interior Alaska offers cost-effective thermal capture through 9 months
annually. The Tanana Solar Thermal Public Facilities Heating Project seeks to combine biomass
space heating technologies currently being installed at Tanana’s public facilities with solar
thermal collectors. The synergistic combination of these two technologies and shared thermal
storage capacity will serve to result in reduced imported petroleum consumption and also serve to
optimize operation of the biomass boilers currently being installed at Tanana.
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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 targeted Tribal Elder Housing Complex (owned by the Native Village of Tanana)
currently utilizes an oil-boiler/hydronic system which is consuming about 14,000 gallons
of heating oil annually. This consumption will be dramatically reduced upon completion
of the DOE EECBG funded biomass installation and the use of Round 6 funded DHW
solar thermal system.
The City-owned Senior Housing four-plex is both oil and biomass heated. This Round 6
project will supplement these heating sources through taking advantage of the solar
collection season available in Interior Alaska
Each of these facilities is currently being retrofitted with GARN and Econoburn wood-fired
boilers and thermal storage capacity. Integration of solar thermal collectors into these thermal
storage systems is the primary purpose of this AEA Round 6 funding application.
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.
Tanana Village is located at the confluence of the Yukon and Tanana Rivers in Interior Alaska
with no road-connections to the rest of the State. Tanana represents a typical remote 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 Tanana and its people. This is because most
rural Alaskan households are spending up to 40 percent of their annual income (cash) on energy
this winter compared with 4 to 6 percent for the average urban household.
The City of Tanana (the City) has been actively seeking ways and funding to improve the
infrastructure, services and general living conditions in the community. This is being
accomplished through extensive community input. Tanana conducts an annual community
planning process which has prioritized a number of community development projects including
establishment of low-cost and environmentally sound energy efficiency and supply systems. This
DOE EECBG application seeks to carry-out a village-wide public facility energy efficiency
retrofit and bio-mass (wood) space heating program in order to lessen cash leakage out of the
local economy and create long-term, renewable resources based employment. While significant
benefits will be immediately generated to the community of Tanana from this project, more
importantly, there is a regional Alaska benefit of this DOE EECBG project which is it will lead
the way for most of rural Alaska to replicate and as a result, produce a more sustainable rural
Alaskan economy and energy use system.
Tanana’s delimina, as is the case for all of rural Alaska, is dependence on imported petroleum
heating oil for space heating of essential community facilities and infrastructure. This EECBG
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project, will provide a market transformation example to the rest of rural Alaska by conducting
village-wide importation substitution of expensive, imported heating oil by, first, increasing all of
Tanana’s public facilities thermal/electrical consumption efficiency and, second, substituting oil-
fired space heating with three high efficiency bio-mass (wood-fired) centralized heating plants
strategically located adjacent to clustered Tanana’s public facilities.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As mentioned above, importation of heating oil is the major cash drain on the Tanana Village
economy. While the City’s on-going DOE EECBG project will make a major impact on
importation of imported heating fuel oil to Tanana, the integration of solar thermal will provide a
further renewable energy contribution and serve to demonstrate the compatibility of integrating
biomass and solar thermal systems by providing further financials savings.
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 AEA Round 6 project will include:
A reasonable estimate of collectors and hardware purchase costs and delivery FOB
Tanana.
Plumbing interface labor and materials costs
New thermal storage and utilize existing biomass thermal storage capacity
System project technical management of implementation costs
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.
The targeted Tribal Elders Residential Complex and land is owned by the Native Village
of Tanana.
The City’s Senior Housing Four-Plex is owned by the City.
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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
All permits related to installation of the DOE EECBG funded biomass space heating project have
been obtained including fire marshal permits and SHPO clearances. No additional permits are
expected for this project.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
None will apply.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Recent installations of high efficiency residential and public facility solar thermal collection
systems in Alaska have demonstrated that significant solar thermal energy can be captured from
March through October and can provide significant quantities of heat to for domestic hot water
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generation and also for supplement of space heating systems. The financial benefits relate to
displacement of usage of expensive petroleum-fired heating systems and can provide annual
operational savings to the Tanana heating system(s) operators.
Key to combining high efficiency biomass heating systems with solar thermal collector systems is
that both share similar temperature operation ranges and as a result, can also share common
thermal storage capacity which thereby lessen the upfront capital investment needed.
The City of Tanana has utilized the technical assistance services of Arctic Sun, LLC. who ran a
solar thermal modeling program called “Poly Sun” to produce estimated thermal energy gained
through solar thermal collector installation at the two (2) project sites which estimated the Net
Present Value for each planned installation as follows:
Tribal Elders Housing --- $153,360 (see page 3 in Attachment #4)
City Senior Four-Plex --- $179,831 (see page 3 in Attachment #4(
Project Costs:
Tribal Elders Complex:
Material $23,035
Freight $ 1,386
Labor $16,409
Travel, room $ 2,970
Total $43,800
Senior Housing:
Material $18,293
Freight $ 985
Labor $15,867
Travel, room $ 2,755
Total $81,700
Total NPV savings to the community from the solar thermal project = $333,191.00.
The City will conduct monitoring (utilizing non-Round 6 resources) and will be tracking and
correlating solar insolation, ambient temperature, collector and tank temperatures, and flows
though-out. This monitoring component will track:
1. How much theoretical heat energy was there?
2. How much heat energy did the collector system generate?
3. How much heat energy was lost in the transfer and storage?
4. How much heat energy was sent to the heating loads?
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5. How much of the available heat energy was used by the loads?
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.)
There are no expected direct O&M costs to these systems. However, the City will be employing a
full-time worker to operate the biomass heating systems currently being installed and this person
will be tasked with monitoring the solar collector systems’ performance and date collection.
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
All thermal contributions from the installed solar thermal system will be contributed “free of
charge” to each facility’s owners.
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. 9 month per year.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Solar thermal measured by BTU and heat gain.
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 6
ii. Rated capacity of generators/boilers/other Ranging from 130,000 BTUs per to 400,000 BTU’s
per hour.
iii. Generator/boilers/other type Oil-fired boilers
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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iv. Age of generators/boilers/other 2 to 12 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 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] .n/a
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] DWH usage for both facilities is 2,900 gallons annually
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other DWH usage is increasing at these two facilities.
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] Approximately 100,000,000 BTUs captured annually.
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] n/a
ii. Coal [tons or MMBtu] n/a
iii. Wood [cords, green tons, dry tons] n/a
iv. Other n/a
Project Cost
a) Total capital cost of new system $81,700
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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 n/a
ii. Heat Displacing 912 gallons of number one heating oil.
iii. Transportation n/a
b) Current price of displaced fuel $5.50
c) Other economic benefits
d) Alaska public benefits Non-carbon footprint
Power Purchase/Sales Price
a) Price for power purchase/sale $.71/kwh
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years) 11 and 13 years
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).
Efficiency of the biomass technology.
Thermal or electric application.
Boiler efficiency.
Displaced fuel type and amount.
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Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture
percentage.
Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage.
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known?
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
Other Public Benefit:
Additional AEA Round 5 budgetary request is for $79,000 monitoring of system(s) performance.
The monitoring will be tracking and correlating solar insolation, ambient temperature, collector
and tank temperatures, and flows though-out. This monitoring component will track:
1. How much theoretical heat energy was there?
2. How much heat energy did the collector system generate?
3. How much heat energy was lost in the transfer and storage?
4. How much heat energy was sent to the heating loads?
5. How much of the available heat energy was used by the loads?
Results of this project’s performance experience and data will be distributed to rural Alaskan
villages.
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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
Solar thermal collection systems, once installed, are relatively maintenance free. The City of
Tanana commits to full reporting and public distribution of this project’s performance experience
and data collected.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
The City of Tanana has been awarded to grants as follows:
The Department of Energy (DOE) awarded $1,540,000 and the Alaska Energy Authority awarded
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$412,642 for the activities listed below:
Activity 1 – Public Building Retrofits: Energy efficiency measures will target Tanana public
buildings to receive bio-mass heating. Energy efficiency retrofit designs will be conducted for
Tanana’s main public buildings including the school and tribal offices complex, fire hall, city
shop, city offices and public servant housing units.
1. Conduct energy audits of targeted buildings – spring, 2011.
2. Procure retrofit and LED materials and equipment – Spring/Summer, 2011.
3. Conduct LED lighting retrofits – winter, 2011.
4. Conduct weatherization retrofits – winter, 2011 through fall, and 2012.
Activity 2 – Train The Trainer: Provide energy efficiency retrofit training through the
University of Alaska (UAF) to fourteen (14) Tanana residents utilizing energy
efficiency/renewable energy curriculum under development at UAF so that village residents will
become the “train the trainer” workforce to carry out outreach training to other villages desiring
to replicate the Tanana model. Additional training funds will be sought from the State of Alaska
Department of Labor and the Tanana Chiefs Conference. Also conduct a 4-day special topic
Energy Champions” course.
1. Develop renewable/energy efficiency retrofit training curriculum with UAF’s Interior
Aleutians Campus – fall, 2011.
2. Conduct Tanana-based renewable/energy efficiency retrofit course and training – fall,
2012.
3. Develop “Energy Champions” special topic short course for education of leaders from
interior villages on renewable energy and energy efficiency options for their villages –
summer, 2011.
4. Recruit village leaders throughout interior Alaska and conduct “Energy Champions”
training – spring, 2012.
Activity 3 – Biomass Centers Design: This scope of work with include the design of two full-
scale biomass energy centers – one at the school, one at the tribal complex (which will provide
heat and hot water for two buildings in the complex) The SOW will also fund the design of mini-
energy centers to heat the piped water/sewer system, fire hall, city offices, city shop and public
servants housing units.
1. Conduct design of bio-mass centers – fall, 2011.
Activity 4 – Biomass Centers Construction: This scope of work includes the construction of
two full-scale biomass centers – one at the school and one at the tribal facility complex. It will
also fund the construction of mini-biomass centers to heat the piped water/sewer system, fire hall,
city offices, city shop and public servants housing units. As part of this activity, the City of
Tanana plans to conduct a “Wood Cutters Incentive Program”.
1. Procure biomass center materials, equipment and boilers – winter, 2011 through summer,
2011.
2. Construct one bio-mass center at Tanana school – fall, 2011.
3. Construct one bio-mass center at Tribal Complex– fall, 2012.
4. Construct mini bio-mass centers – summer, 2011 through fall, and 2012.
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5. Create and operate Wood Cutter Incentive Program – summer/fall 2011 and also 2012.
Activity 5 – Other Villages Biomass Education Outreach: 1) Conduct a village-by-village
demand analysis (market study) of existing bio-mass (wood) usage and estimate future usage
based on varying end-use scenarios and distribution options. This activity’s intent is to assist
other interested rural interior villages to learn from the Tanana model and develop their own
energy efficiency/biomass development plans. 2) Conduct a village-by-village feasibility
assessment of ways and means to establish economically viable opportunities for bio-mass
(wood) heating centers. 3) Produce an energy efficiency and bio-mass (wood) opportunities
development plan for each participating village where the feasibility study has shown viable
biomass energy opportunities. This activity’s intent is to assist other rural villages in developing
their own energy efficiency/biomass plans.
1. Document the Tanana biomass and energy efficiency experience, publish reports,
brochures and power point presentations – on-going through summer, 2012.
2. Outreach to interior villages on the benefits of energy efficiency retrofits and biomass
heating of public facilities and develop a plan for each interested villages - Fall, 2012
3. Conduct a demand analysis of existing wood use and estimate future use based on
biomass conversion of public facilities at participating villages – Fall/Winter, 2012.
4. Create bio-mass business plans (including financing options) for each participating village
– spring, 2013.
5. Create financing plan for each participating village for proposed energy efficiency and
biomass strategies–spring, 2013.
Activity 6 - Reporting: The City of Tanana will prepare and submit quarterly project reports and
invoices.
This AEA Round 5 project will serve to compliment the above scope of work and demonstrate
the compatibility and benefits of integrating solar and biomass thermal systems in rural Alaska.
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.
The City of Tanana has approved of the attached resolution.
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.
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Through the attached resolution, the City of Tanana is estimating it in -kind contribution to this
project at $50,000 for the purposes of providing thermal storage capacity and thermal energy
system distribution infrastructure to the targeted public facilities.
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 f or each phase of your project.
If you have any question regarding how to prepare these tables or if you need assi stance 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 $ 0.00 $0.00 $0.00 $0
Contractor/vendor selection
and award 09/30/2013 $81,700 $0.00 $0.00 $81,700
Construction Phases 03/31/2012 $0 $0.00 $50,000 $
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 $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $81,700 $ $131,700
Budget Categories:
Direct Labor & Benefits $32,276 $ $32,276
Travel & Per Diem $ $ $
Equipment $ $ $50,000 $
Materials & Supplies $41,328 $ $41,328
Contractual Services $ $ $
Construction Services $ $ $
Other Freight/Travel $38,001 $ $
TOTALS $81,700 $ $50,000 $131,700
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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:
City of Tanana
Regular Election is held: October, 2012
Date: September 21, 2012
Authorized Grant Signer(s):
Printed Name Title Term Signature
Alfred “Bear” Ketzler Mayor On-going
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Donna Folger Mayor
Grantee Contact Information:
Mailing Address:
P.O. Box 249, Tanana, Ak. 99777
Phone Number:
(907) 978-5848
Fax Number:
(907) 374-5001
E-mail Address:
beartanana@gci.net
Federal Tax ID #: 92-0068214
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 Alfred “Bear” Ketzler
Signature
Title Mayor
Date September 21, 2012