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HomeMy WebLinkAboutAEA Round 7 applicationRenewable Energy Fund Round VII Grant Application -Heat Projects I SECTION 1 -APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Chickaloon Native Village Type of Entity: Tribal Government Fiscal Year End: September 30 Tax ID # 92-0120907 Tax Status: __ For-profit __ Non-profit ....lL...Government ( check one) Date of last financial statement audit: Mailing Address Physical Address PO Box 1105 21117 East Myers Avenue Chickaloon, AK 99674 Sutton, AK 99674 Telephone Fax Email (907)745-0749 (907)745-0709 cvadmin @chickaloon.ora 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Michael Williams Energy Project Manager Mailing Address PO Box 1105 Chickaloon, AK 99674 Telephone Fax Email (907)7 45-0737 (907)7 45-0763 michaelw@chickaloon.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) {1 ), or A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant's board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at httQ :/ /www .akenergyauthority .org/veeQ/G rant-T emQiate. Qdf. (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. , . . . ·\: ...,. AEA 2014-006 Grant Application Page 2 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects SECTION 2 -PROJECT StJMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title -(Provide a 4 to 7 word title for your project). Type in space below. Chickaloon Solar Thermal and Biomass Project 2.2 Project Location -Sutton, AK Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project -Latitude and longitude, street address, or community name. Latitude 61 o 42' 697"N Longitude 148° 54' 249" W 21117 Myers Avenue Sutton, Alaska 99674 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the project. Sutton, AK 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind to Heat X Biomass or Biofuels Hydro to Heat X Solar Thermal Heat Recovery from Existing Sources Heat Pumps Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction I. Reconnaissance X Ill. Final Design and Permitting II. Feasibility and Conceptual Design X IV. Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The proposed project is to build and install a Combined Solar Thermal and Wood Pellet Boiler System that would provide heat for both a 3,200 sq ft shop/office and a 1,160 sq ft · administrative building. Included in the project is construction of a building addition to house the boiler system, purchase and installation of solar thermal panels and pellet boiler, ·and focused monitoring and evaluation. The project will also be used as a demonstration projectfor the community to learn about solar thermal and wood pellet boiler systems and to encourage the use of renewable resources for heating. AEA 2014-006 Grant Application Page 3 of 20 .... 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects 2.5 PROJECT BENEFIT I Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel costs, lower energy costs, local jobs created etc.) Upon commissioning this system, annual fuel disp lacement of approximately 1 ,818 gallons of heating oil, which at a current price of $4.06 a gallon would amount to $7,381 a year; and an annual displacement of approximately 1 ,022 gallons of propane, which at $3.99 a gallon would amount to $4,077 a year, for a total savings of $7,708 in displaced fuel cost. The cost of wood pellets is estimated at $3,750 per year. The reduction in carbon emissions would significantly lower our carbon footprint and benefit the public's health and safety by improving air quality and decreasing carbon emissions that contribute to climate change. Chickaloon Native Village is a strong supporter of renewable energy education and in addition to the heating of our buildings we intend to use this system as a showcase of combined renewable technologies. The public benefit of this project will be a model for the community to on how to limit or eliminate fossil fuel usage in space heating with solar thermal or biomass and give real time data in costs and performance by having a hands-on model to see and learn about the application of solar thermal and wood pellet for space heating. 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 Chickaloon Solar Thermal and Biomass Project will require a total of $152,867. Chickaloon Native Village has committed to providing the fund necessary to cover the Administrative Indirect Costs (up to $35,000) of the project leaving $127,065 remaining to be funded, which we are requesting in this proposal. Administrative Indirect Costs for FY2014 are estimated at 25.01% of direct costs. Assets worth more than $5 ,000 are not included in indirect charges. So indirect charges for this project are estimated at ($127,065-23,900) x 25.01% = $25,802. $23,900 is the estimated cost of the wood boiler unit. 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 $127,065 2.7.2 Cash match to be provided $25,802 2.7.3 Total In-kind match to be provided (sum of lines below) $ Biomass or Biofuel inventory on hand $ .. Energy efficiency improvements to buildings to be $ heated (within past 5 years or committed prior to proposed project completion) AEA'2014-006 Grant Application Page 4 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects Other In-Kind match to be provided 2.7.4 Other grant funds to be provided 2.7.5 Other grant applications not yet approved 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) Project Costs & Benefits I $ $0 $0 $152,867 (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section $152,867 4.4.4, including estimates through construction. 2.7.8 Additional Performance Monitoring Equipment not covered $ by the project but required for the Grant Only applicable to construction phase projects. 2.7.9 Estimated Direct Financial Benefit (Savings) $ 7, 708 per year 2. 7.1 0 Other Public Benefit If you can calculate the benefit in terms $ of dollars please provide that number here and explain how you calculated that number in Section 5 below. AEA 2014-006 Grant Application Page 5 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects SECTION 3-PROJECT MANAGEMENT PLAN I..::; ENERGY AUTHORITY 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 Michael Williams is the Energy Project Manager for Chickaloon Native Village and will perform as the project manager for the Chickaloon Solar Thermal and Biomass Project. Michael's office phone is (907)745-0737 and his email is michaelw@chickaloon.org. Michael's resume is attached . References Chief Gary Harrison (Chairman of Chickaloon Native Village) (907)745-0749 Mark Masteller (Assistant Professor, Sustainable Energy Program, Mat-Su College, University of Alaska Anchorage) (907) 745-9784 mamasteller@matsu.alaska.edu Pl fll ease 1 "d db 1 out orm prov1 e eow. y ou may a dd dd". d d a 1t10na rows as nee e Start End Milestones Tasks Date Date Request for proposal RFP 's for all phases and all equipment Week Week 1 3 Construct Building Addition Week Week 1 4 Select and Hire Contractors Week Week 3 5 Order Supplies and Materials Week Week 3 8 Install Wood Pellet System Install boiler and Silo Week Week 9 12 Install Solar Thermal System Install Solar Thermal Panel and storage Week Week tanks 13 16 Test System and Commission Integrate both systems with existing distribution, Tie into second building and Week Week Commiss ion 17 20 Monitor and Eva luate System Daily moni toring , demonstrations to Week Week community, evaluation savings monthly . 21 44 Final Project Reporting Evaluations, summaries of demonstrations , Week Week operations reporting 45 52 ~~~~~~~~~.;~~~~~~~~~~ AEA 2014-006 Grant Application Pr"ge 6 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects 3.3 Project Resources I The Project Manager, Michael Williams, has 15 years of experience managing construction projects in both Alaska and Nebraska and 9 years of experience in installation and maintenance of renewable energy systems. Michael has been the manager the Uk'e Kole (No Footprint) Energy Project since April of 2012, during which time he completed 200 hours of training through Solar Energy International, qualifying him for the Renewable Energy Applications Certificate, and is completing a Sustainable Energy Occupational Endorsement through the University of Alaska. Chickaloon Native Village's Facilities Department will construct the necessary building addition to house the boiler system. A qualified Contractor or Contractors will be solicited for the Chickaloon Solar Thermal and Biomass Project. Chickaloon Native Village's procurement policy will be followed in soliciting bids from contractors. Alaska businesses with experience who will be asked to submit proposals for the Solar Thermal and for the Wood Pellet Boiler installation, as well as other interested contractors. 3.4 Project Communications Once project funds are released Chickaloon Native Village will begin monthly meetings with the project team and contractors. These meetings will ensure that all tasks are accomplished as anticipated and future aspects of the project will be discussed. Project meetings will be summarized in quarterly reports to AEA. The Mini Chickinews will also report progress to Tribal citizens and Chickaloon Native Village Staff. Chickaloon Native Village intends for this to be a successful, transparent and collaborative project. 3.5 Project Risk Potentially the largest risk is delay of materials. In order to mitigate this risk we have allowed for extra time to gather the materials that are not available locally. We intend to begin ordering at the earliest opportunity upon notification of funding award. Another potential problem would be lack of response for bids from contractors. To mitigate this concern we will be notifying potential contractors at the earliest opportunity upon notification of funding award. .. ·~ AEA 2014-006 Grant Application Page 7 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects I 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 Active heating is most commonly used to provide space heat using the sun's energy to provide heat for residential and commercial buildings. Solar thermal is a very eff icient use of the sun's energy in Alaska. In the area where the installation will occur we have a reported average of 3.0 peak sun hours and very little seasonal shading offers an excellent opportunity to maximize solar gain. Our site faces due south and it is estimated that the solar thermal panels will supplement the wood pellet system six months out of the year as well as being the exclusive supplier of heat for five months of the year. The 40x80 Shop/Environmental building has radiant in floor heat on the ground floor, which is a great asset for the project due to the low heat temperatures (1 00°) required for operation. Baseboard heaters are the heating source for the much smaller office space upstairs and will require a higher temperature (140°) which will be supplied by the biomass boiler. Pellets may be purchased and supplied from local building supply centers as well as Superior Wood Pellet Fuels in North Po le, Alaska, which delivers in bulk or bags. Additionally, Gulkana Village has a small pellet plant, which they plan to expand so it would be a possible future source of wood pellets. In the future there may be enough local demand to develop a pellet manufacturing facility in South Central Alaska. Hydro power is not available at this location however wind is a potential for this site, although more studies must be conducted before making a final determination on its appropriateness for this site. 4.1.2 For Biomass Projects Only Superior Pellets in North Pole manufactures 30,000 tons of pellets a year and the local home improvement stores import pellets for their inventory. As such, there are no forseeable shortages to fuel. 4.2.1 Basic configuration of Existing Heating Energy System The existing heating system for the 3,200 sq ft Shop/Environmental building consists of a Weil McClain 158,000 btu boiler that is 16 years old with an efficiency of rated 84.8% and a Toyotomi om-180 which is approximately 3 years old with an efficiency of 88% at 148,000 btu. Combined the two boilers consume approximately 1 ,818 gallons of fuel a year. The heatin s stem for thH Administration buildin consists of a ro ane heate.r , AEA 2014-006 Grant Application Renewable Energy Fund Round VII Grant Application -Heat Projects I which consumes approximately 1,022 gallons of propane a year. 4.2.2 Existing Heating Energy Resources Used Existing energy resources for heating are heating oil for boilers, forced air furnaces and Toyotomi vented heating systems and propane for propane heaters. Fuel oil and propane are supplied by local companies, which employ local residents. Chickaloon Native Village is one of many customers in the area. Natural gas is unavailable in Sutton. With the combined solar thermal and biomass system we will be able to eliminate our use of fossil fuels by approximately 1 ,818 gallons of fuel oil and 1 ,022 gallons of propane. This will have no foreseeable impact to the energy infrastructure. 4.2.3 Existing Heating Energy Market The impact of this project would be to reduce the annual consumption of approximately 1 ,818 gallons of fuel oil and 1 ,022 gallons of propane to 0 gallons of both fuels. The potential decline in both fuels should not have a negative effect on other energy customers in the region. However, the project will be a model for the public to learn about solar thermal and biomass for space heating and could have a positive impact on the use of these renewables in the region. Most residents in the Sutton/Chickaloon area burn fuel oil or cordwood for space heating, as natural gas is not available in the area. This project will be an example of how to use the efficient renewable energy sources to offset the expensive non-renewable fossil fuels being burnt now. Chickaloon Native Village has a long term vision to protect, enhance, and restore ancestral lands, water and air and to ensure healthy, respectful development by reducing our reliance on fossil fuels. Upon commissioning of this system we will be achieving a milestone in that path by eliminating the use of nearly 3,000 gallons of fossil fuels a year as well as reducing C02 emissions by approximately 53,132 lbs annually. Even allowing for the emissions production and transportation of the wood pellet fuels this project should net C02 emissions by 90%. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!§.l!!!ll!!'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!' AEA 2014-006 Grant Appli c aaion Page 9 of 20 r: ;J7i2/2013 ', Renewable Energy Fund Round VII Grant Application -Heat Projects 4.3 Proposed System 1..-:J ENERGY AUTHORITY Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, energy efficiency and environmental issues. 4.3.1 System Design Chickaloon Native Village proposes to purchase and install a solar thermal and wood pellet boiler combination heating system for two existing buildings. • Renewable energy technology-Solar Thermal Energy is a technology for harnessing the suns energy for thermal heat. Medium temperature collectors are used for heating hot water and air for commercial and residential use. Wood pellet boiler systems consist of a silo, a worm drive and a boiler. The pellets are transported from the silo, by a worm drive, directly to a cell sluice, and then into the boiler combustion chamber. The boiler then heats the water or glycol used for the heat medium. • Optimum installed capacity-With the combination of solar thermal and wood pellet boiler system the heat ing capacity is expected to be 100%, with approximately 17% from solar thermal and 83% from wood pellets. • Anticipated barriers-Weather may be a factor if the project starts in the winter months. Delivery of materials on time would be another barrier. • Basic integration concept-Conceptual design, to be completed as part of the project, wou ld detail how the solar thermal and wood pellet boiler would integrate into existing heating and hot water systems. • Delivery methods-Wood pellets would be delivered by the supplier in bulk on trucks. Superior Wood Pellet Fuels in North Pole delivers in bulk and in bags. Gulkana Village is another potential supplier if they expand future operations. 4.3.2 Land Ownership Chickaloon Native Village is sole owner of the property and fully supports the Chickaloon Solar Thermal and Biomass Project. 4.3.3 Permits • There are no permits required for the Chickaloon Solar Thermal and Biomass Project 4.3.4 Environmental \ ... ~ .. , • There are very few environmental concerns with solar thermal arid wood pellet boiler systems. Wood pellets have low pollution emissions. They are ~_substantial improvement -_!\U-:.'£ AEA 2014-006 Grant Application Page 10 of 20 ·'··'. 7/2/2013