HomeMy WebLinkAbout1. APPLICATION -- Biomass Heat for Minto Community BuildingsRenewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Application Page 1 of 41 7/2/2011
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Village of Minto
Type of Entity: Tribal, IRA Fiscal Year End September 31
Tax ID # 92-6002702 Tax Status: For-profit Non-profit X Government ( check one)
Date of last financial statement audit:
Mailing Address
PO Box 26
Minto, AK 99758
Physical Address
404 Lakeview Dr.
Minto, AK 99758
Telephone
(907) 798-7530
Fax
(907) 798-7627
Email
Bessie.titus@tananachiefs.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Bessie Titus
Title
Tribal Administrator
Mailing Address
PO Box 26
Minto, AK 99758
Telephone
(907) 798-7530
Fax
(907) 798-7627
Email
Bessie.titus@tananachiefs.org
1.2 APPLICANT MINIMUM REQUIREMENTS
1.2.1 As an Applicant, we are:
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
or
No
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
or
No
1.2.3 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement (Section 3 of the RFA).
Yes
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 2 of 41 7/2/2013
SECTION 2 – PROJECT SUMMARY
2.1 Project Title –
Biomass Heat for Minto Community Buildings
2.2 Project Location
2.2.1 Location of Project
Village of Minto, Alaska
2.2.2 Community benefiting
Village of Minto
2.3 PROJECT TYPE
2.3.1 Renewable Resource Type
Wind to Heat X Biomass or Biofuels
Hydro to Heat Solar Thermal
Heat Recovery from Existing Sources Heat Pumps
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
I. Reconnaissance X III. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commissioning
2.4 PROJECT DESCRIPTION
The project is the installation of a single biomass heating system ser ving the Minto
Multi-Purpose Building/ Lodge and the Health Clinic. The project will reduce the cost of
heat by offseting 11,400 gallons of fuel oil with 99 cords of firewood per year. The
biomass heat system will be located in a stand -alone building (new construction) located
adjacent to the project buildings. The project site and all project buildings are controlled
by the Village of Minto. The wood fuel will be sourced from nearby forests owned by
Seth-De-Ya-Ah Corporation, which has provided a letter of commitment for the project.
Fuel harvests will be completed by Minto’s trained wildfire crew, and the crew boss has
provided a letter of support for the project. A harvest plan will be completed by Tanana
Chiefs Conference, and is included as part of the project budget. The project emerges
from significant community energy planning efforts and project prioritization, including
the US DOE Strategic Technical Assistance Response Team (START) program and wood
energy assessment supported by the Alaska Wood Energy Development Task Group.
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Grant Application - Heat Projects
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2.5 PROJECT BENEFIT
The Minto Multi-Purpose Building/ Lodge (“Lodge”) is the heartbeat of the community,
housing all tribal offices critical to the function of the village, including management,
accounting, environmental, youth and elder services, tribal court, transportation, and
the lodge manager.
The Minto Health Clinic provides medical services to all residents of Minto. It is the only
heathcare provider in the village, with Fairbanks medical services 130 miles away.
The operation of these essential community buildings is in jeopardy from the
skyrocketing and fluctuating price of heating oil. The community’s top priority to
emerge from START planning is to weatherize the MUF to reduce energy costs.
$250,000 of START resources are committed for the MUF weatherization (2013/ 2014).
The present cost of fuel oil consumes about 40% of the Village operating budget. The
buildings use 11,400 gallons of heating oil per year. At $5.00 per gallon, the total annual
cost of heat is $57,000. This money could be better used to support the health and
welfare of the Minto people.
The Biomass Heat for Minto Community Buildings project would result in:
More than $21,000 savings per year in heating the project buildings
1 – 2 part time harvesting jobs for our skilled Minto firefighting crew, to extend
their employment season, with about $11,000 labor per year
1 part time job in winter employment to stoke the boiler, with about $9,000 of
labor per year
Circulation of $19,835 per year in local wood fuel purchases from the local
corporation
Improved self-reliance and sustainability for the Village of Minto
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2.6 PROJECT BUDGET OVERVIEW
Total Project Cost: $403,550.
Proposed Funding Sources: $274,750 of AEA Renewable Energy Fund Round 7
Secured Funding Sources:
$100,000 of State CIP Grant (2013) for the purpose of upgrading the Minto Lodge
Heat system to a biomass boiler
$11,000 (in kind) provided by the applicant in the form of a 2001 Chevy Cheyanne
pick-up
$10,000 (in kind) provided by the applicant in the form of personnel time to help
complete the harvest and operations plan and administer the grant
$7,800 (in kind) provided by Tanana Chiefs Conference in the form of personnel
time to assist the Village of Minto with grant administration
Additional match funding: $250,000 of US DOE START money committed to weatherize
the Minto Multi-Purpose Building/ Lodge project building in 2013/ 2014
Key cost categories include:
Biomass boiler system
Cordwood storage/ boiler building -- $97,500
Wood boiler -- $32,000
Stack -- $4,400
Mechanical / electrical within boiler building -- $20,200
Underground piping -- $18,000
Lodge integration -- $9,500
Clinic integration -- $7,200
Harvesting & Operations
Harvest & Operations Plan -- $25,000
Caterpillar D3 / D4 or equivalent (used) and attachments (log forks, shears,
firewood processor) -- $80,000
Winter road construction, 2 mi. -- $8,000
Harvest truck -- $11,000
Monitoring equipment
Cadillac HeatX meter or equivalent -- $8,000
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Grant Application - Heat Projects
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2.7 COST AND BENEFIT SUMARY
Grant Costs
2.7.1 Grant Funds Requested in this application $ 274,750
2.7.2 Cash match to be provided $ 0
2.7.3 Total In-kind match to be provided (sum of lines below) $ 278,800
Biomass or Biofuel inventory on hand $0
Energy efficiency improvements to buildings to be
heated (within past 5 years or committed prior to
proposed project completion)
$250,000
Other In-Kind match to be provided $28,800
2.7.4 Other grant funds to be provided $ 100,000
2.7.5 Other grant applications not yet approved $ 0
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 653,550
Project Costs & Benefits
2.7.7 Total Project Cost Summary from Cost Worksheet, Section
4.4.4, including estimates through construction. $ 403,550
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$ 8,000
2.7.9 Estimated Direct Financial Benefit (Savings) $ 21,463
2.7.10 Other Public Benefit If you can calculate the benefit in terms
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
$ 55,576
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 6 of 41 7/2/2013
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
The project manager is Bessie Titus of the Village of Minto.
Address:
Village of Minto
PO Box 26,
Minto, AK
Contact:
Bessie.titus@tananachiefs.com
P. (907) 798-7530
F. (907) 798 - 7627
A resume is included with the electronic version of this application.
Bessie has been the primary contact of the Village of Minto’s participation in the START
program, and has coordinated efforts with IRHA to plan and implement weatherization
and other upgrades to the MUF/ Lodge building. She is in regularly contact with IRHA
and TCC, both of which have pledged support for the Minto biomass heat project.
Bessie has worked as a Tribal Administrator for the Village of Minto, as well as IWCA
Coordinator, assisting tribes in the TCC region to develop administrative capabilities,
with an emphasis on accounting practices.
TCC has pledged $7,800 of in-kind personnel time to assist the Village of Minto in grant
management, as documented in the attached Letter of Commitment. Managing millions
of dollars of inter-agency assistance and grant administration every year, TCC is wel l
equipped to assist the Village of Minto in grant administration.
3.2 Project Schedule and Milestones
Milestones Tasks
Start
Date
End
Date
PHASE III – DESIGN & PERMITTING
1. Project scoping and contractor
solicitation for planning and design
Issue selection process
Select contractor(s)
Engage contract
Aug.
2014
Sep.
2014
2. Permit applications (as needed) Firemarshall review (by design contractor) Nov.
2014
Jan.
2015
3. Final environmental assessment
and mitigation plans (as needed) n/a
4. Resolution of land use, right of n/a
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way issues
5. Permit approvals Complete Firemarshall review (design
contractor)
Nov.
2014
Jan.
2015
6. Final system design AEA approves 30% design
Finish final design (design contractor)
Sept.
2014
Jan.
2015
7. Engineers cost estimate Complete cost estimate (design contractor) Sept.
2014
Jan.
2015
8. Updated economic and financial
analysis
Update B-C model based on engineers cost and
weatherization outputs
Jan.
2015
Jan.
2015
9. Negotiated power sales
agreements with approved rates n/a n/a
10. Final business and operational
plan
Complete Harvest Plan (TCC + Village of Minto)
Complete O&M plan for daily, weekly, monthly
and yearly maintenance
Jan.
2015
Mar.
2015
11. Start Construction Notify AEA of Intent to Construct March
2015
Mar.
2015
Milestones
Tasks
Start
Date
End
Date
PHASE IV. CONSTRUCTION
1. Confirmation that all design and
feasibility requirements are complete. Feb.
2015
Feb.
2015
2. Completion of bid documents Jan.
2014 --
Sept.
2015
3. Contractor/vendor selection and
award n/a – contractor is IRHA n/a
4a. Material procurement -- all
materials for building and biomass
heat system
Contractor performs procurement (IRHA) Mar.
2015
Jun.
2015
4. All other Construction Phases
and labor May
2015
Aug.
2015
4b. Site Work Site Grading and prep May
2015
May
2015
4c. Building Foundation Construct foundation May
2015
May.
2015
4d. Building structure Complete framing and/ or SIP panels Jun.
2015
July
2015
4e. Exterior finishes and building
envelope
Insulate, side, and roof boiler building
Finish woodshed pole building
Jun.
2015
July
2015
4f. Interior finishes Drywall, paint Jun
2015
July
2015
4g. Mechanical and electrical systems,
boiler s installed Electric, plumbing, drain, fire protection July
2015
July
2015
4h. Integration and testing Integrate biomass system to hydronic heat
system
Testing by equipment manufacturer or rep.
July
2015
Aug.
2015
4i. Decommissioning old systems n/a
4j. Final Acceptance,
Commissioning and Start-up Commissioning by equipment manufacturer Aug.
2015
Aug.
2015
6. Procure Harvest Equipment Equipment selected in Harvest and Operations
Plan
Mar.
2015
Mar.
2015
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 8 of 41 7/2/2013
3.3 Project Resources
Existing project partners include:
Village of Minto – grant applicant, grant manager, and project owner
Tanana Chiefs Conference – grant management assistance & harvest planning
Interior Regional Housing Authority – project construction
Project partners to be selected include:
Biomass energy design & engineering consultant
Operations plan consultant
The project manager is Bessie Titus, Tribal Administrator for the Village of Minto, which
has also managed the US DOE START grant in collaboration with Marsh C reek LLC and
the AEA VEEP Grant in collaboration with AEA.
Tanana Chiefs Conference has pledged grant management assistance amounting to
$7,800 of in-kind personnel time. Tanana Chiefs Conference is the service provider for
the village and manages millions of dollars of state and federal agencies money every
year.
Tanana Chiefs Conference is also the harvest planning contractor. TCC is the service
provider for Villages in the Interior region, and has completed dozens of forest
stewardship plans for native corporations in the region. Under AEA REF Round 6
funding, TCC completed harvest plans for the villages of Hughes, Koyukuk, Anvik and
Kobuk.
The project building contractor is Interior Regional Housing Authority (IRHA). IRHA has
been a huge supporter of renewable biomass energy projects to lower the cost of heat
in the villages it supports. Under AEA REF Round 6, IRHA was awarded project money to
design and construct village biomass energy projects (2013/ 2014) in Hughes, Koyukuk,
and Anvik, in addition to other feasibility study monies.
IRHA uses force account labor. With the exception of the construction manager, all
other labor will be local hire.
IRHA is also the selected contractor for the US DOE START project to weatherize the
project building, Minto Multi-Purpose Building/ Lodge (2013/ 2014).
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Grant Application - Heat Projects
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Additional contractors for the Operations plan and the design and engineering of the
project will be determined according to the Village of Minto’s polic ies and procurement
procedures. These procurement policies comply with existing state procurement
requirements.
The biomass energy and biomass harvest equipment will be selected by the Village of
Minto in collaboration with any consultants or contractors to the project. The biomass
energy equipment will be approved by AEA in the 30% design review prior to purchase.
The biomass boiler must be high efficiency low emissions boiler. Equipment will be
selected based on the Village of Minto’s operational preferences, consultants’
recommendations, end-user feedback, and manufacturer support.
3.4 Project Communications
During the entire course of project development: Monthly teleconferences between
Minto Tribal Administrator and Tanana Chiefs Conference. Minutes will be taken at the
teleconferences and recorded in the project file to maintain a written record. Monthly
meeting notes will be sent to the AEA Grant Manager.
Pre-construction and construction phases: After Design is complete, monthly
teleconferences between IRHA and the Village of Minto. Minutes will be taken at the
teleconferences and recorded in the project file to maintain a written record. IRHA will
track budgeted versus actual expenditures by line item using accounting software and
best practices. These documents will also become part of the written record.
The Tribal Administrator Bessie Titus will schedule meetings (either teleconference or in
person) with the biomass energy coordinator at AEA at the following key project
milestones:
30% design
Before and after project commissioning
Monthly during project construction
Project communication milestones with the Authority follow:
Aug. 2014 -- Project kick off meeting
Jan. 2015 -- 30% design review
Mar. 2015 -- Notice of Intent to Construct
April – Aug. 2015 – Monthly teleconference & Monthly report from Contractor
Sept 2015 – Project commissioning and Close out
Sept. 2016 – Sept. 2024 – Annual reporting
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 10 of 41 7/2/2013
3.5 Project Risk
The main potential project risks include:
Underutilizing the boiler due to unreliable labor
Underutilizing the boiler due to lack of secured wood fuel
System underperformance due to poor design, engineering, or equipment
selection
These risks are mitigated by:
The Village of Minto and the broader public has identified the project as a high
priority through START planning (2013) and previous community planning. The
project building hosts many stakeholder groups providing key village services
such as Village administration, tribal court/ youth protection, the school and
senior lunch program, and lodge rooms for guests. These essential functions and
the community planning process demonstrates the community’s strong desire to
own and operate the boiler system.
Additionally, the community has reviewed the labor requirements: stoking 99
cords of wood over 7 months requires stoking about 14 cords per month and
about 0.5 cords per day. We recognize the labor to complete this operation is
significant but the feasibility analysis suggests we can complete this type of labor
while still maintaining more than $21,000 in operational savings over the year.
We are excited to extend the employment possibilities for our skilled wildfire
fighting crew and to provide a part-time winter job for someone in our Village.
We have mitigated the risk of fuel sourcing by discussing the project with the
Village Corporation, Seth-do-ya-ah. They support our project, as indicated by the
Letter of Support included with this application. We have budgeted $25,000,
including $5,000 of in-kind time from the Village of Minto, to complete a Harvest
and Operations Plan with the Corporation. We have also budgeted $8,000 to
blaze 2 miles of winter road for a harvest area. We have preliminarily identified a
harvest area along the Eliot Highway that is close to town but would not compete
with local woodcutting for home heating. The area is forested with hardwoods
and spruce. Resource analysis will be completed and a sustainable harvest plan
will be completed.
We have mitigated the risk of poor design or equipment selection by including a
30% design review meeting/ teleconference with AEA’s biomass energy program
coordinator in the project milestones.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 11 of 41 7/2/2013
SECTION 4 – PROJECT DESCRIPTION AND TASKS
This project is the culmination of a long line of effort for strategic energy planning and
development in the Interior:
Interior Regional Energy Plan, Phase I
Interior Regional Energy Plan, Phase II
Pre-Feasibility Assessment of Biomass Energy for the Village of Minto, 2012,
sponsored by the Alaska Wood Energy Task Group (AEA) and US Forest Service
MUF/ Lodge building weatherization, sponsored by US DOE START program
State CIP Grant award for biomass boiler and other upgrades at the MUF/ Lodge
project building
To demonstrate the congruence of the proposed project with the preceding planning and
development work, we have included some quotes from the project pre-feasibility study,
completed by CTA Architects Engineers in 2012:
“The Lakeview Lodge combined with the Health Center appears to be a good use of a wood
biomass heating system. With the current economic assumptions, the estimated fuel use,
and the reported fuel prices, this option has a very strong 20 year B/C ratio of 2.1.” (pg. 2)
The project was confirmed as economically and technically, with simple integration into
existing hydronic heating systems.
The Pre-feasibility study, as well as documentation of the State CIP grant and START
building weatherization, are included as supporting documents.
4.1 Proposed Energy Resource
Biomass for heat has been identified as one of the most important energy strategies for
villages in the Interior Region of Alaska, as explained in the Interior Regional Energy Plan
Phase I and Phase II. It is number 1 energy strategy for villages in the region after
weatherization and energy efficiency measures.
We have preliminarily identified an area for fuel sourcing, owned by the village
corporation, Seth-do-ya-ah. The Corporation supports the project, as indicated by the
Letter of Support included with this application.
A preliminary assessment of Seth-do-ya-ah lands within the Cascaden Fire Perimeter was
completed by TCC forestry department Will Putman. The analysis suggested that mor e
than 11,000 cords of wood are available within one mile of the Elliott Highway, and about
11,350 cords are located within the Cascaden Fire Perimeter, as detailed by the chart
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 12 of 41 7/2/2013
below:
The Village of Minto has committed $25,000 in the project budget, including $5,000 of in -
kind time from the Village, to complete a Harvest and Operations Plan for sourcing fuel
from the Corporation. It is a high priority of the Village of Minto to not complete with
woodcutters for home heating fuel.
Wood fuel does have some drawbacks. It is relatively low energy density, so
transportation costs often represent a substantial portion of wood fuel price. However,
this is also an advantage: although Minto is on the road system, there will be little
competition for this wood. Additionally, the stumpage value itself is very stable and can be
secured through long term contracts.
Another drawback is that wood fuel harvest also requires special equipment and trained
labor. Sometimes, harvest roads can create trespass issues. The Village of Minto has
pursued this project in part because it extends the job opportunities for the Village’s
wildfire crew. The harvest plan will formulate a plan to mitigate trespass.
4.1.2 For Biomass Projects Only
Identify any wood inventory questions, such as:
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?
Land surrounding Minto is owned by the Village Corporation, Seth-do-ya-ah. The
landowner supports the project, as indicated by the letter of support. The landowner is
open to a harvest agreement which sustains the forest, water, and wildlife resources in
perpetuity.
TCC forester Will Putman completed initial resource analysis of Seth-do-ya-ah lands.
Although an annual allowable cut has not been determined, the preliminary inventory
assessment, detailed by the chart below, suggests a project using 99 cords per year could
easily source all of its fuel within one mile of the Elliot Highway.
Set - Da - Ya - Ah Land
Within Fire perimeter: and 1 mile of Elliott Highway:
Cover Type Cords/acre Acres Total cords Acres Total cords
Black spruce 0.0 1,152 0 769 0
Black spruce poletimber 5.9 516 3,047 516 3,047
Hardwood 7.4 841 6,221 830 6,139
White spruce 18.2 21 390 21 390
White spruce/Hardwood 14.8 114 1,692 114 1,692
Shrubland 0.0 1,336 0 951 0
Totals: 3,981 11,350 3,202 11,268
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Set-Da-Ya-Ah Land
Within Fire perimeter: and 1 mile of Elliott Highway:
Cover Type Cords/acre Acres Total cords Acres Total cords
Black spruce 0.0 1,152 0 769 0
Black spruce poletimber 5.9 516 3,047 516 3,047
Hardwood 7.4 841 6,221 830 6,139
White spruce 18.2 21 390 21 390
White spruce/Hardwood 14.8 114 1,692 114 1,692
Shrubland 0.0 1,336 0 951 0
Totals: 3,981 11,350 3,202 11,268
The species in the proposed harvest area are hardwoods (poplar, birch, aspen, and willow)
and spruce (black and white), as indicated by the Cascaden Fire Ridge Map, included with
this application.
As part of the project, 2 miles of winter road blazing have been included in the project
budget, as has a tracked D3/ D4 caterpillar (or equivalent) and harvest and processing
attachments.
The project harvest plan, to be completed by Tanana Chiefs Conference in collaboration
with personnel from the Village of Minto, will include:
GIS analysis
Timber type map
Allowable cut on economically accessible/ operable land
Delivered fuel cost
Preliminary economic model
A formal fuel supply contract to be executed
The analysis and mapping has already been initiated, as demonstrated by the cordwood
inventory chart above and the attached map of the proposed harvest area.
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4.2.1 Basic configuration of Existing Heating Energy System
The data on the existing heating system number, size, age, efficiency, and type of
generation is located below.
Number of boilers Lodge – 1 boiler, 1 DHW heater;
Clinic – 1 boiler, 1 indirect DHW heater
Rated capacity of boilers/ DHW heaters Lodge – boiler: 348,000 btu;
Lodge -- DHW heater: 170,000 btu;
Clinic – boiler: 115,000 btu;
Clinic -- DHW: 40 gal.
Type of boilers Lodge – boiler: fuel oil
Lodge – DHW heater: fuel oil
Clinic – boiler: fuel oil
Clinic -- DHW: fuel oil
Age of boilers Lodge boiler & DHW heater – 1982
Clinic boiler and DHW heater – 2005
Efficiency of boilers Estimated 80%
4.2.2 Existing Heating Energy Resources Used
The project will maintain all fuel oil heating and storage infrastructure, so no impact on
existing infrastructure is expected.
Presently, fuel is purchased from the North Fork Store located in Minto. The project
would have a positive resource impact, leading to more fuel oil conservation.
There is not expected to be any impact on existing fuel resources. Oil is a global
commodity without any effect from individual buyers such as the Village of Minto. Fuel oil
is and will continue to be sourced into the community by the Store. Although the Store
fuel oil purchases will decrease, we also expect the economic multipliers from the project
to benefit the Store.
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4.2.3 Existing Heating Energy Market
The existing energy use is $57,000 of fuel oil purchase (11,400 gal @ $5.00 / gal), all of
which leaves the community immediately. The price of this fuel is sky-rocking and
fluctuating. Additionally, the fuel is an environmental hazard to store and handle.
The project would reduce the costs of heating the buildings by 30%+, leading to more
provision of essential community services in the project buildings. The Minto Multi -
Purpose Building/ Lodge (“MUF”) is the heartbeat of the community which houses all
tribal offices critical to the function of the village. Similarly, the Minto Health Clinic
provides medical services to all residents of Minto. It is the only heathcare provider in the
village, with Fairbanks located 130 miles away.
Because Minto is on the road system, the project is not expected to have any significant
adverse effect on existing energy customers.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, energy efficiency and environmental issues.
4.3.1 System Design
Description of renewable energy technology specific to location
The project is the design and construction of a single biomass heating system serving
the Minto Multi-Purpose Building/ Lodge and the Health Clinic. The project will be
housed in a new building located about 65’ southeast of the MUF/ Lodge and 25’ east of
the Clinic.
The boiler technology will be selected by the Village of Minto, in conjunction with
project partners, and approved by AEA.
The wood fuel will be sourced from local forests owned by the Village Corporation.
As part of the pre-feasibility analysis, an air quality report was prepared for the project.
That report suggests that there are no significant emission sources or ambient air
quality issues associated with the project site (Minto Biomass Pre-Feasibility Study,
Appendix D).
A schematic of the site illustrates the project layout.
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Optimum installed capacity
The pre-feasibility study identified 378,000 btu as the proposed system capacity. However,
this will be updated by the design and engineering team after weatherization activities are
complete.
Anticipated capacity factor
The project’s anticipated capacity factor is 75% (in operation during the heating season,
with additional use for domestic hot water during the summer months).
Anticipated annual generation
The project’s anticipated generation is 1,623 MMBTU, using 99 cords of wood to offset
11,400 gallons of fuel oil per year.
Anticipated barriers
There are no anticipated barriers to the project. The project partners have worked
together before. The project partners have administrative, technical, and construction
capacity, and plan to contract for additional technical support. There is support from the
Village Corporation and wildfire crew boss for fuel harvesting operations.
Basic integration concept
The project will be integrated with a hot water (glycol) supply and return loop. Water will
be delivered with hot water pipes and pumps and controlled with controls.
Delivery methods
The exact delivery methods are dependent on the harvest plan. However, the outline of
the delivery methods follow:
Fall/ Winter harvest operations to minimize road costs and access skilled labor of
wildfire crew in the non-wildfire season
Use of tracked D3/D4 Bobcat (or equivalent) with attachments (log forks, shears,
firewood processor) to operate in snowy conditions. The budget includes
construction of 2 miles of winter road.
Wood fuel will be hauled from the harvest site to the project site using the project
Chevy Cheyanne truck and a new trailer.
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Energy efficiency measures (building envelope)
The project emerges from years of community planning for a biomass heat project,
including, most recently, START program. $250,000 of START monies have been awarded
to the Village of Minto to weatherize the MUF/ Lodge during 2013/ 2014. Through the
START planning process, weatherization of the MUF/ Lodge project building was selected
as the top priority. The other project building, the Minto Clinic, is relatively new (2005)
and does not need additional weatherization. If this application is funded, all essential
community buildings in the Village of Minto will be super efficient and heated with
renewable, local fuel.
4.3.2 Land Ownership
Wood Fuel Harvest
The wood fuel will be sourced from nearby forests owned by Seth-De-Ya-Ah Corporation,
which has provided a letter of support for the project. A map of the proposed harvest area
is also included with this application.
“Based on the information we received, approximately 100 cords of wood annually is
needed to heat both buildings . . . We will support the council with wood from the burn
area . . . ” –Carla Smith, Executive Director, Seth-Da-Ya-Ah Corporation
A harvest and operations plan, to be completed prior to the start of construction, is
included as part of the project budget. The project harvest plan will be completed by
Tanana Chiefs Conference in collaboration with personnel from the Village of Minto.
The plan will include:
GIS analysis
Timber type map
Allowable cut on economically accessible/ operable land
Delivered fuel cost
Preliminary economic model
A formal fuel supply contract to be executed
Project Site
The lands upon which the project buildings sit are in the process of being conveyed
according to BLM 14c lands survey. In the mid 70s the land upon which Village of Minto
property sits was conveyed to the village corporation, Seth-De-Ya-Ah. The corporation
engaged the Village in a 20 year lease of the land, which recently expired. The contract for
site control among the Village of Minto and Seth-De-Ya-Ah Corporation is currently being
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renewed, as stated in the Corporation’s letter to Village of Minto, dated Septmber 20,
2013:
“Seth-De-Ya-Ah Corporation is willing to renew the lease of the property.” –Carla Smith,
Executive Director, Seth-De-Ya-Ah Corporation
4.3.3 Permits
The only permit required for this project is Alaska State Firemarshall Review. This permit
will be completed by the selected design and engineering firm by January 2015, as
indicated in the project milestones.
A high efficiency, low emissions boiler will be selected and will fall well below any
emissions permitting thresholds.
There are no anticipated barriers associated with permitting the project.
4.3.4 Environmental
Environmental considerations are discussed below:
Threatened or endangered species -- n/a
Habitat issues – n/a – the area is already developed
Wetlands and other protected areas – n/a
Archaeological and historical resources -- n/a – the area is already developed
Land development constraints – n/a
Telecommunications interference – n/a
Aviation considerations – n/a
Visual, aesthetics impacts – n/a; community members regularly come to the Village
office encouraging us to pursue this project
Identify and discuss other potential barriers –The land is leased and under control
of the applicant although final BLM Survey of 14c lands is not complete at the
project site. There are no know barriers to this project. There is support from the
timber landowner, public support, an ample forest resource, and the human
capacity to harvest wood fuel and operate the system.
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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
Costs for each milestone and budget category are outlined in Section 9: Grant Budget.
Total anticipated project cost: $403,550
Phase III, Design & Permitting: $50,500
Phase IV, Construction: $353,050
Requested grant funding: $274,750
Applicant matching funds
Loans: $0
Capital contributions: $0
In-kind: $21,000 (truck $11,000, harvest and operations planning $5,000, project
management $5,000)
Other funding sources:
In-Kind --Tanana Chiefs Conference: $7,800
State CIP Grant for Minto Lodge biomass heat upgrade (2012): $100,000
Projected capital cost of proposed renewable energy system, including project
monitoring equipment: $119,400
Projected development cost of proposed renewable energy system : $284,150
**Key cost categories and data sources are on the following page.
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Key cost categories include:
Biomass boiler system
Cordwood storage/ boiler building -- $97,500
Wood boiler -- $32,000
Stack -- $4,400
Mechanical / electrical within boiler building -- $20,200
Underground piping -- $18,000
Lodge integration -- $9,500
Clinic integration -- $7,200
SOURCE OF DATA:
Minto Biomass Pre-
Feasibility Study,
Appendix A
Harvesting & Operations
Harvest & Operations Plan -- $25,000
Caterpillar D3 / D4 or equivalent (used) and
attachments (log forks, shears, firewood processor) --
$80,000
Winter road construction, 2 mi. -- $8,000
Estimates from:
Clare Doig, Forest &
Land Management Inc.
Will Putman, Tanana
Chiefs Conference –
Forestry
Harvest truck -- $11,000
Online search
Monitoring equipment
Cadillac HeatX meter or equivalent -- $8,000
Vendor estimate
4.4.2 Project Operating and Maintenance Costs
The projected O&M Costs and Sources of identifying that cost follow:
COST AMOUNT SOURCE
Biomass fuel $19,835 Minto Biomass Pre-feasibility (2012) pg. 18
Non-fuel O&M $11,200 Minto Biomass Pre-feasibility (2012) pg. 18
Ongoing Monitoring $10,000 Minto Village In-kind Contribution -- $1,000 per
year for 10 years
All ongoing O&M costs will be funded by the applicant through operating savings. The
Minto Biomass Pre-feasibility Study completes a full financial analysis of the existing heat
operations versus the renewable biomass heat operations. The Pre-feasibility Analysis
determines that that the biomass energy project can be sustainably o perated by the
Village of Minto, offering $21,463 in annual operating savings (the financial analysis
includes wood fuel purchase of $19,835, non-fuel O&M of $11,200, and supplementary
fuel oil purchase of $8,745). The project has a benefit cost ratio of 2.1 over its lifetime.
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4.4.3 Heat Purchase/Sale
There are no heat customers. The project will be owned and operated by the
Applicant, the Village of Minto, and all heat generated will be used in buildings
owned and controlled by the Applicant.
There is no price of heat from the project. However, the calculated cost per
MMBTU is about $19 – this is almost 50% savings over the price of fuel oil at $37/
MMBTU ($5/gal). The cost can be calculated using heat output (1,625 MMBTU)
and O&M cost ($19,835 fuel + $11,200 non fuel).
The project has a present value of $ 682,006 and a net present value of $357,006.
The project has a benefit-cost of 2.1 (Table 1.3 pg. 2). The project will save the
Village of Minto $21,463 in year 1 (Minto Pre-feasibility Assessment, pg 18).
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4.4.4 Project Cost Worksheet
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is
available on a sustainable basis.
Annual average resource
availability.
Annual Allowable Cut TBD; 99 cords of wood
are required per year; 11,200 cords are located
within 1 mile of the Elliot Highway
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Heating Energy Generation and Usage
a) Basic configuration
i. Number of generators/boilers/other Lodge – 1 boiler, 1 DHW heater;
Clinic – 1 boiler, 1 indirect DHW heater
ii. Rated capacity of generators/boilers/other Lodge – boiler: 348,000 btu;
Lodge -- DHW heater: 170,000 btu;
Clinic – boiler: 115,000 btu;
Clinic – indirect DHW: 40 gal.
iii. Generator/boilers/other type All heating devices are fuel oil.
iv. Age of generators/boilers/other Lodge boiler & DHW heater – 1982
Clinic boiler and DHW heater – 2005
v. Efficiency of generators/boilers/other 80%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section
blank)
i. Annual O&M cost for labor $2,000
ii. Annual O&M cost for non-labor $64,410
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]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency Weatherization to MUF/ Lodge committed 2013/2014
vii. Future trends See vi. Efficiency
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d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 11,400 gal.
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
278,000 btu
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 1,625 MMBTU
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
99 cords
iv. Other
Project Cost
a) Total capital cost of new
system
$119,400
b) Development cost $284,150
c) Annual O&M cost of new
system
$11,200
d) Annual fuel cost $19,835 ($200 / cord x 99 cords)
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 11,400 gal
iii. Transportation
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b) Current price of displaced fuel $5.00
c) Other economic benefits $55,576
d) Alaska public benefits Reduced risk of wildfire, reduced risk of oil
spill, extended employment for wildfire crew,
import substitution and circulating energy
dollars, moose habitat enhancement
Heat Purchase/Sales Price
a) Price for heat purchase/sale n/a
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.1 (source: Minto Pre-feasibility Assessment, pg. 2)
Payback (years) 15.1 (source: Minto Pre-feasibility Assessment, pg.18)
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4.4.5 Building Efficiency
There are two buildings associated with the project – the Minto Lodge and Health Clinic.
Building Name: Minto Muti-Function Building/ Lodge
Primary Use: The Lodge is used for many essential community functions,
including: 1. Location for all village services, administration, human services,
education, employment, tribal court/ youth protection 2. School and senior lunch
program 3. Lodge rooms for guests.
Location: 404 Lakeview Drive, Minto, AK
Hours of operation: 8:00 am - 5:00 pm, with some evening and weekend
activities
Single structure building
Total square footage: 11,500
Electrical consumption per year: $27,000
Heating oil consumption per year: 10,000 Gallons
Average number of occupants: 30
Has an energy audit been performed? When? Please provide a copy of the energy
audit, if applicable:
o Yes: START analysis and community energy planning has been performed.
START planning identified the need to weatherize and better insulated the
Minto Lodge as the top priority. $250,000 of US DOE START money is
committed for this purpose (2013/2014). IRHA is the project contractor.
Have building thermal energy efficiency upgrades been completed?
o The upgrades will be complete in 20013/2014. The START money is
committed and the project has been identified through the START process.
If applicable, please provide evidence of efficiency improvements including cost
and anticipated savings associated with upgrades.
o To verify the evidence of the weatherization plans, please see the
following website which indicates Minto’s participation in the START
program: http://energy.gov/indianenergy/resources/start-
program/alaska-start
o To verify the identified START scope of work, we have attached the
detailed Scope of Work from the START process, which is to improve the
energy efficiency of the building through weatherization.
Estimated annual heating fuel savings: to be determined
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Building Name: Minto Health Center
Type or primary usage of the building: Health Clinic serving the village of Minto
Location
Location: 310 Lakeview Drive, Minto
Hours of operation: 8:00 am - 5:00 pm
Single structure
Total square footage: 2,000
Electrical consumption per year: $4,100
Heating oil/fuel consumption per year: 1,400 gallons
Average number of occupants: 10
Has an energy audit been performed? When? Please provide a copy of the energy
audit, if applicable.
o No energy audit performed. The building is quite new (2005) and the
thermal envelope is in good condition.
Have building thermal energy efficiency upgrades been completed?
o This building was completed in 2005. The thermal envelope is in good
condition.
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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 Minto Multi-Purpose Building/ Lodge (“Lodge”) is the heartbeat of the community,
housing all tribal offices critical to the function of the village , including management,
accounting, environmental, youth and elder services, tribal court, transportation, and
the lodge manager.
The Minto Health Clinic provides medical services to all residents of Minto. It is the only
heathcare provider in the village, with Fairbanks medical services 130 miles away.
The operation of these essential community buildings is in jeopardy from the
skyrocketing and fluctuating price of heating oil. The community’s top priority to
emerge from START planning is to weatherize the MUF to reduce energy costs.
$250,000 of START resources are committed for the MUF weatherization (2013/ 2014).
The present cost of fuel oil consumes about 40% of the Village operating budget. The
buildings use 11,400 gallons of heating oil per year. At $5.00 per gallon, the total annual
cost of heat is $57,000. This money could be better used to support the health and
welfare of the Minto people.
The Biomass Heat for Minto Community Buildings project would result in the following
economic benefits:
More than $21,000 savings per year in heating the project buildings
1 – 2 part time harvesting jobs for our skilled Minto firefighting crew, to extend
their employment season, with about $11,000 labor per year
1 part time job in winter employment to stoke the boiler, with about $9,000 of
labor per year
Circulation of $19,835 per year in local wood fuel purchases from the local
corporation
Improved self-reliance and sustainability for the Village of Minto
The project would displace 11,400 gallons of fuel oil per year, for a total of 228,000
gallons over its 20-year lifetime. At $5.00 per gallon, it will displace $57,000 of fuel per
year, resulting in $21,000 savings.
The project may also provide the opportunity for the landowner to leverage incentives
by accessing USDA Biomass Crop Assistance Program (BCAP) monies.
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In addition to economic benefits, there are ample non-monetary benefits associated ith
the project. The primary benefit is import substitution of fuel oil with a local, renewable,
safe biomass fuel – firewood. This sustainable and renewable resource has been used by
Native Alaskans for more than 10,000 years.
The project will result in an environmental benefit from transitioning to an energy
source that helps avoid oil spills and the cost of oil spill prevention. Additionally, there is
a morale value to providing employment to the Village’s young men who a re skilled
wildfire fighters. This will extend their emplo yment season. Additionally, the project will
benefit our community through habitat enhancement for moose, who eat early seral
species such as willow and aspen. Additionally, this project will also improve the safety
of our village by reducing the risk of wildfire. Finally, the project will serve to mature the
biomass energy industry in rural Alaska by strengthening partnerships among key
service providers (IRHA and TCC) as well as demonstrating sound design and equipment
selection
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SECTION 6– SUSTAINABILITY
Proposed business structure:
The project will be owned and operated by the Village of Minto. Its economic and
technical viability has been determined through independent, professional third party
feasibility analysis.
Administrative and labor operations of the boiler project will be completed by staff at
the Village of Minto. The Project Manager, Bessie Titus, has also worked as IWCA
Coordinator, assisting other tribes in the TCC region set up sound administrative
systems, especially accounting systems.
The business structure for fuel harvesting and delivery will be completed in the harvest
and operations plan. It may include buying fuel from individual woodcutters or
businesses, who rent harvest equipment from the village, or it may include Village
employees cutting wood. Options will be considered during the harvest and operations
plan.
A harvest plan will be completed as part of Phase IV. Design by Tanana Chiefs
Conference. The plan will include:
GIS analysis
Timber type map
Allowable cut on economically accessible/ operable land
Delivered fuel cost
Preliminary economic model
A formal fuel supply contract to be executed
This work has already been initiated, as demonstrated by the cordwood inventory chart
completed by TCC and the attached map of the proposed harvest area.
An operations plan will be completed as part of the project.
How do you propose to finance the maintenance and operations for the life of
the project
The Project O&M costs will be funded by the app licant through operating savings. The
Minto Biomass Pre-feasibility Study completes a full financial analysis of the existing
heat operations versus the renewable biomass heat operations. The Pre-feasibility
Analysis determines that that the biomass energy project can be sustainably operated
by the Village of Minto (including fuel purchase of $19,835, non-fuel O&M of $11,200)
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and still save more than $21,000 per year in operations. The project has a benefit cost
ratio of 2.1 over its lifetime.
Purchasing wood fuel has more regular even cash flow than purchasing fuel oil, so we
do not anticipate new cash flow challenges.
Identification of operational issues that could arise.
We see the following as the primary operational issues:
The main potential project risks include:
Underutilizing the boiler due to unreliable labor
Underutilizing the boiler due to lack of secured wood fuel
System underperformance due to poor design, engineering, or equipment
selection
These risks are mitigated by:
The Village of Minto and the broader public has identified the project as a high
priority through START planning (2013) and previous community planning. The
project building hosts many stakeholder groups providing key village services
such as Village administration, tribal court/ youth protection, the school and
senior lunch program, and lodge rooms for guests. These essential functions and
the community planning process demonstrates the community’s strong desire to
own and operate the boiler system.
Additionally, the community has reviewed the labor requirements: stoking 99
cords of wood over 7 months requires stoking about 14 cords per month and
about 0.5 cords per day. We recognize the labor to complete this operation is
significant but the feasibility analysis suggests we can complete this type of labor
while still maintaining more than $21,000 in operational savings over the year.
We are excited to extend the employment possibilities for our skilled wildfire
fighting crew and to provide a part-time winter job for someone in our Village.
We have mitigated the risk of fuel sourcing by discussing the project with the
Village Corporation, Seth-do-ya-ah. They support our project, as indicated by the
Letter of Support included with this application. We have budgeted $25,0 00,
including $5,000 of in-kind time from the Village of Minto, to complete a Harvest
and Operations Plan with the Corporation. We have also budgeted $8,000 to
blaze 2 miles of winter road for a harvest area. We have preliminarily identified a
harvest area along the Eliot Highway that is close to town but would not
compete with local woodcutting for home heating. The area is forested with
hardwoods and spruce. Resource analysis will be completed and a sustainable
harvest plan will be completed.
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We have mitigated the risk of poor design or equipment selection by including a
30% design review meeting/ teleconference with AEA’s biomass energy program
coordinator in the project milestones.
A description of operational costs including on-going support for any back-up
or existing systems that may be require to continue operation
The system will cost approximately $19,835 per year in wood fuel cost, potentially up to
$9,500 in supplementary fuel oil cost, and $11,200 in non-fuel O&M costs. All existing
infrastructure will stay in place to provide back up heat. All project financial analysis has
been completed with these figures (Minto Biomass Pre-Feasibility Analysis pg. 18).
Commitment to reporting the savings and benefits
The Village of Minto is committed to reporting the savings and benefits from the project
for per the RFP requirements section 3.15, as endorsed by the Village of Minto
Resolution and signature on this application. We have budgeted a Cadillac heat meter
(or equivalent) in the project budget to provide scientific monitoring of our project’s
heat output for reliable project monitoring.
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SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
A summary of Minto’s related grant awards are listed here:
$250,000 US DOE START grant to weatherize the Minto Lodge (2013/ 2014)
$200,000 State CIP for building upgrades, including biomass heat, a the Minto
Lodge
VEEP Grant to undertake village energy efficiency, unrelated to project buildings
(2013)
The project emerges from years of community planning for a biomass heat project,
including, most recently, START program. START demonstates the Village of Minto’s
ability to collaborate with IRHA and energy contractors (Marsh Creek LLC) to plan and
implement a community-wide energy project.
Through the START planning process, weatherization of the MUF/ Lodge project building
has been selected as the top priority. IRHA will carry out the weatherization in
2013/2014.
In 2012, the Village of Minto sought a state CIP to upgrade the Lodge h eating system to
wood heat. That grant was awarded and $100,000 has been designated as “other state
grant” funds for this project.
Also in 2013, the Village of Minto was awarded State Village Energy Efficiency Program
monies, which will improve efficiency in other community buidings and will not affect
the project buildings.
The Village of Minto remains in compliance with federal and state laws, including credit
and federal tax obligations.
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SECTION 8 – LOCAL SUPPORT AND OPPOSITION
There is no known opposition for the project. Community members regularly stop
by the Village office to encourage staff to “go for it” on the biomass energy
project
We have support from the key project players, including Seth -Da-Ya-Ah
Corporation (fuel supplier), Minto Firefighting crew, and the Lodge Manager, as
documented by letters of support. Excerpts are included below.
“Based on the information we received, approximately 100 cords of wood annually is
needed to heat both buildings . . . We will support the council with wood from the burn
area . . . ” –Carla Smith, Executive Director, Seth-Da-Ya-Ah Corporation
“This project would not only help the village save money on fuel costs, but give
experienced firefighters a job cutting wood to support the boile r.” –Roy Charlie, boss of
Minto Firefighting Crew
“We are close to the point where we will not be able to fund the lunch program in the
near future. . . I strongly support this grant, not only because it will help my program, but
many programs now struggling to serve our community.” –Alexander Twana, Lodge
Manager
“Tanana Chiefs Conference strongly supports energy projects that assist our villages in
moving toward energy independence and greater economic development. It is toward
this end that Tanana Chiefs Conference supports Minto’s AEA application.” Jerry Isaac,
President, Tanana Chiefs Conference
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SECTION 9 – GRANT BUDGET
The Village of Minto is dedicated to pursuing development monies for its biomass
project until they are awarded. Local, renewable, affordable heat of the community’s
essential buildings is critical to the function of the Village.
The Village of Minto is asking for $274,750 of AEA Round 7 Grant Funds to couple with
and State CIP grant ($100,000), Applicant contributions ($21,000), and TCC support
contributions ($7,800). A summary of the budget and key budget categories is below.
Total Project Cost: $403,550.
Proposed Funding Sources: $274,750 of AEA Renewable Energy Fund Round 7
Secured Funding Sources:
$100,000 of State CIP Grant (2013) for the purpose of upgrading the Minto Lodge
Heat system to a biomass boiler
$11,000 (in kind) provided by the applicant in the form of a 2001 Chevy Cheyanne
pick-up
$10,000 (in kind) provided by the applicant in the form of personnel time to help
complete the harvest and operations plan and administer the grant
$7,800 (in kind) provided by Tanana Chiefs Conference in the form of personnel
time to assist the Village of Minto with grant administration
Additional match funding: $250,000 of US DOE START money committed to weatherize
the Minto Multi-Purpose Building/ Lodge project building in 2013/ 2014
Match Contibutions:
The Applicant’s in-kind labor is at $26/hr loaded labor rate (Alaska labor code SOC 43-
0000) and a total of 384 hours.
The Applicant’s in kind truck contribution is valued at $11,000.
TCC’s in-kind labor is $65/hr loaded labor rate and a total of 120 hours.
Key cost categories and sources of cost data are listed on the following page.
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Key cost categories include:
Biomass boiler system
Cordwood storage/ boiler building -- $97,500
Wood boiler -- $32,000
Stack -- $4,400
Mechanical / electrical within boiler building -- $20,200
Underground piping -- $18,000
Lodge integration -- $9,500
Clinic integration -- $7,200
SOURCE OF DATA:
Minto Biomass Pre-
Feasibility Study,
Appendix A
Harvesting & Operations
Harvest & Operations Plan -- $25,000
Caterpillar D3 / D4 or equivalent (used) and
attachments (log forks, shears, firewood processor) --
$80,000
Winter road construction, 2 mi. -- $8,000
Estimates from:
Clare Doig, Forest &
Land Management Inc.
Will Putman, Tanana
Chiefs Conference –
Forestry
Harvest truck -- $11,000
Online search
Monitoring equipment
Cadillac HeatX meter or equivalent -- $8,000
Vendor estimate
The heat metering equipment required by the authority is Cadillac HeatX or equivalent.
The metering equipment will be approved by the Authority during the 30% design
review. These meters cost about $8,000, and the cost is included in the grant budget.
Our intent is to choose this meter or equivalent, pending heat meter research being
conducted by the Alaska Energy Authority. These meters log energy consumption over
time, and will provide a very accurate log output, which can be used to calculate
savings. As part of the Harvest and Operations plan, a reporting tool (Excel) may be
developed that will assist the Village of Minto with reporting.
The grantee will provide the Authority with a Performance/ O&M report per section
3.15 of the grant RFP. The report will include a description of project operations and
maintenance activities and issues, and information about project performance,
including btu output and fuel savings. The heat meter will enable the applicant to
comply with AEA’s granting requirements.
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PHASE III. DESIGN & PERMITTING
1. Project scoping and contractor
solicitation for planning and design Sep. 2014 $ 2,500 $ - $ 2,500
2. Permit applications (as needed) Dec. 2014 $ 1,000 $ - $ 1,000
3. Final environmental assessment
and mitigation plans (as needed)n/a $ - $ - $ -
4. Resolution of land use, right of
way issues n/a $ - $ - $ -
5. Permit approvals Jan. 2015 $ 1,500 $ - $ 1,500
6. Final system design Jan. 2015 $ 14,000 $ - $ 14,000
7. Engineers cost estimate Jan. 2015 $ 1,500 $ - $ 1,500
8. Updated economic and financial
analysis Jan. 2015 $ 1,500 $ - $ 1,500
9. Negotiated power sales
agreements with approved rates n/a $ - $ - $ -
10. Final business and operational
plan Mar. 2015 $ 20,000 $ 5,000 in kind $ 25,000
11. Grant Administration Sep. 2014 --
Mar. 2015 $ $ 3,500 in kind $ 3,500
$$ $
TOTALS $ 42,000 $ 8,500 $ 50,500
Direct Labor & Benefits $ 3,750 $ 5,000 in kind $ 8,750
Travel & Per Diem $ - $ - $ -
Equipment $ - $ - $ -
Materials & Supplies $ - $ - $ -
Contractual Services $ 38,250 $ - $ 38,250
Construction Services $ - $ - $ -
Other $ - $ 3,500 $ 3,500
TOTALS $ 42,000 $ 8,500 $ 50,500
Milestone or Task
Anticipated
Completion
Date
TOTALS
Budget Categories:
RE- Fund
Grant
Funds
Grantee
Match
Funds
Source of
Matching
Funds
PHASE IV. CONSTRUCTION
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 38 of 41 7/2/2013
RE- Fund Grantee
Matching
Source of
Matching
Funds:
Grant Funds Funds
Cash/In-
kind/Fede
ral
Grants/Ot
her State
Grants/Ot
her
1. Confirmation that all
design and feasibility
requirements are complete.
Feb. 2015 $ 1,200 $ 1,200
2. Completion of bid
documents
Jan. 2014 -- Sept.
2015 $ - 0 $ -
3. Contractor/vendor
selection and award
n/a -- contractor is
IRHA $ - $ $ -
4a. Material procurement -- all
materials for building and
biomass heat system
Mar. 2015 $ 23,400 $100,000
Other
state
grants
$123,400
4. All other Construction
Phases and labor May - Aug. 2015 $ 65,400 0 $ 65,400
4b. Site Work May 2015 $ -
4c. Building Foundation May. 2015 $ -
4d. Building structure Jun. - July 2015 $ -
4e. Exterior finishes and
building envelope
Jun. - July 2015 $ -
4f. Interior finishes July 2015 $ -
4g. Mechanical and electrical
systems, boiler s installed July 2015 $ -
4h. Integration and testing Aug. 2015 $ - $$
4i. Decommissioning old
systems n/a $ - $$
4j. Final Acceptance,
Commissioning and Start-up Aug. 2015 $ - $$
5. Grant Administration &
Operations Reporting
Ongoing -- August
2015 -- August 2025 $ 8,700 $ 9,300 in kind $ 18,000
6. Harvest Bobcat and
attachments Mar. 2015 $ 80,000 0 80000
7. Harvest Truck Mar. 2015 $ - 11,000 in kind 11000
8. Harvest road -- winter road --
2 mile $ 8,000 0 8000
9. Contingency -- 15% $ 46,050 0 $ 46,050
TOTALS $ 232,750 $120,300 $353,050
Direct Labor & Benefits $ 1,900 $ 9,300 $ 11,200
Travel & Per Diem $ $ -
Equipment $ 119,400 $111,000 $230,400
Materials & Supplies $$ $ -
Contractual Services $$ $ -
Construction Services $ 65,400 0 $ 65,400
Other $ 46,050 $ $ 46,050
TOTALS $ 232,750 $120,300 $353,050
Milestone or Task Anticipated
Completion Date TOTALS
Budget Categories:
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 39 of 41 7/2/2013
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 40 of 41 7/2/2013
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 41 of 41 7/2/2013