HomeMy WebLinkAboutsisd application p.1-27Renewable Energy Fund Round VII
Grant Application-Heat Projects
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund Heat Projects only . If your application is for
energy projects that will not primarily produce heat, please use the standard application form
(see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both
application forms is available online at: www.akener authorit .org/REFund7.html.
• If you need technical assistance f illing 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 completed 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.
• In the sections below , please enter responses in the spaces provided , often under the
section heading. You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
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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Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Southeast Island School District
Type of Entity: FiscaiYearEnd:June 30,2014
school district
Tax ID # 92-0057120 Tax Status: __ For-profit __ Non-profit ....,2L.Government ( check one)
Date of last financial statement audit : June 30, 2012
Mailing Address Physical Address
P.O. Box 19569 Thorne Bay, AK 99919 1218AShoreline Drive Thorne Bay, AK 99919
Telephone Fax Email
(907) 828-8254 (907) 828-8257 ~goulding@sisd .org or jfitz~atrick@sisd.org
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Priscilla Goulding Grants and Federal Programs Manager
Mailing Address
P.O. Box 19569 Thorne Bay, AK 99919
Telephone Fax Email
(907) 828-8254 (907) 828-8254 pgoulding@sisd.org
1.2 APPLICANT MIN IMUM REQUIR E MENTS
Please check as ap p rop riate . If you d o not to meet the m inimum applic ant requirements, your
ap p l ication 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 d irectors, 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
htt~://www .akenerg}o'authorit}o'.org/vee~/Grant-Tem~late .~df. (Any exceptions
should be clearly noted and submitted with the application.)
AEA 2014-006 Grant Application Page 2 of 33 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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.
SECTION 2-PROJECT SUMMARY
This section is intended to be no more th an a 2-3 page o vervie w of y o ur project.
2.1 Project Title-(Provide a 4 to 7 word title for your project). Type in space below.
Southeast Island School District wood boilers
2.2 Project Location-
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project-Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map
and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows : 61. 195676.-149 .898663 . If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
Thorne Bay School
1010 Sandy Beach Road, Thorne Bay, AK 99919
Naukati School
100 Heather Street, Naukati, AK 99950
Whale Pass School
126 Bayview Road, Whale Pass, AK 99950
Hollis School
6488 Klawock Hwy. Hollis, AK 99928
2.2.2 Community benefiting-Name(s) of the community or communities that will be the
beneficiaries of the project.
The communities of Thorne Bay, Whale Pass, Hollis, and Naukati will benefit from this project
because the new boilers will provide heat to the schools, the adjacent teacher housing units ,
and greenhouses, where students will be involved in growing vegetables , fruits, and flowers.
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 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 Ill. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commissioning
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Grant Application -Heat Projects
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
Our project will serve four school communities and we intend to use wood biomass and
replacing diesel as the energy source by installing wood fired boilers . We anticipate the result
of greatly reduced heating costs for the schools and associated buildings. Thorne Bay School
received a grant in 2009 to install two Garn wood fired boiler units, and while the system has
been operating, it has proven too small for the job. The units currently in use, (proto-types), can
easily be moved with a forklift, so part of the proposal is to install them at two other school sites,
Whale Pass and Hollis Schools. In order to heat the facility in Thorne Bay which includes a
teacher housing unit and a hydroponic greenhouse, the current system would be replaced with
2 Garn 3200's, and a structure built to house the boilers. Very little reconstruction would be
necessary in Thorne Bay due to the portability of the current Garn Pacs. In Whale Pass and
Hollis, structures would be built to house the boilers. Wood storage buildings will also be
constructed. At Naukati School we would install a wood fired boiler and build the housing for it
as well as for wood storage. The Naukati School is the same size as Howard Valentine School,
Coffman Cove, in our district, where we have an operating Garn system. Naukati will be
modeled after the Coffman Cove set-up . Money saved on the fuel costs will be re-invested in
the school, resulting in more direct service to our students.
2.5 PROJECT BENEFIT
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.)
The benefits of this project include not only a more efficient and suitable system in Thorne Bay,
but also the savings that the relocated boilers will create for Hollis and Whale Pass Schools.
Naukati will have a new boiler installed replacing the current diesel system. All four sites will
reap the benefit of having heated greenhouses and teacher housing units, in addition to the
school buildings . The greenhouse plan includes growing vegetables to feed students in the
school lunch program as well as giving them vocational experience in its operation.
We anticipate significant savings in heating costs. For Naukati, a 10,000 square foot facility, we
anticipate $23,335 savings per year; for Whale Pass and Hollis, 2,500 square foot facilities,
$3,456 per year. For Thorne Bay School, a 41,000 square foot facility, greenhouse 800 sq.ft,
teacher housing 3000 sq . ft. we anticipate a savings of $45,742 .00 . This is a total of
$72,533.00. These figures do not include the fuel/electricity savings for the teachers who will be
living in the housing units, also currently heated with diesel.
The chart below, from the 2008 feasibility study for Naukati and Coffman Cove illustrates the
cost of BTU's using the two types of fuel.
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Grant Application -Heat Projects
Table 5-l. Comparative Cost of Fuel Oil vs. 'Vood Fut>ls
FUEL RHV8 Conversiou DHVa Price per 1mit
(Btu) Efficiency" (Btu) ($)
Fuel oil #2. $4.00/gal
138.000 80% 110.400
(per 1 gallon) per gallon 4.50
5.00
Hemlock, 13. 6 9.942 milljon $150/cord
(per l cord MC30) lllillion 75% per cord 175
200
Notes:
a from Appendix D
Co t per 11MBtu
(delh·ered. ($))
36.232
40.761
45.29
15.088
17.602
20.117
In addition to lower energy costs, the contracts for supplying wood in the four locations could be
the impetus to start new businesses providing employment for local residents. The Naukati
feasibility study of 2008 by Dan Parrent, states that " ... a large, commercial account could be
expected to induce some economies of scale and keep cordwood prices reasonable." Other
advantages that are hard to put a cost factor to, include families remaining in the community for
the quality of life that small schools offer, with open gym nights, activities that take place at the
gym such as Boy and Girl Scouts, 4H, and competitive archery. Heated greenhouses would not
be feasible with diesel fuel, but with the surplus heat generated by wood, many new possibilities
open up for the students, teachers' families and possibly community use .
Teacher housing residents will operate the boiler in Thorne Bay, saving the district at least
$15,000 per year. At the other sites, savings will be less, but the same arrangement will be put
in place . A new housing unit was just built in Whale Pass and one is planned for Naukati. They
are next to the schools and will or have been plumbed to easily connect to the wood fired boiler.
Teachers have readily agreed to feed the boilers in exchange for the heat, reducing our labor
costs dramatically.
The students will also get experience with the boilers at each site. Students are working
stacking wood, splitting and hauling wood and in Coffman Cove a student is running the boilers
as part of a work-study credit.
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.
For the entire project we will need two 3200 Garn boilers for Thorne Bay and two 2000's for
Naukati. Other purchases will include construction supplies for boiler buildings and wood
storage buildings . Whale Pass and Hollis will need hydronic heating systems installed . Funds
will be needed to move the two GarnPacs from Thorne Bay to Whale Pass and to Hollis. (The
units will be moved by truck/trailer by road to the sites.) The main source of funding anticipated
for the entire project is through the Alaska Energy Authority and Southeast Island School
District. Some community involvement is anticipated such as involving students in construction
and biomass processing whenever possible. Funds needed for the project are $940,950.00
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and benefits below.
AEA 2014-006 Grant Application Page 5 of 33 7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application
2.7.2 Cash match to be provided
2.7.3 Total In-kind match to be provided (sum of lines below)
Biomass or Biofuel inventory on hand
Ground and Excavation work
Energy efficiency improvements to buildings to be
heated (within past 5 years or committed prior to
proposed project completion)
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
$940,950.00
$40,000.
$137 ,825.
$20,000.
$30,000.
Windows will be replaced in
Whale Pass and Hollis
$40,000 .
Salary and benefits grant
manager $7,825
Jonathan 's labor on
plumbing installations
$40,000.
$0
$0
$1,256,600.
(Summary of total project cos ts 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 $
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) $83,846.00
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.
SECTION 3 -PROJECT MANAGEMENT PLAN
Describe who will be res ponsible for managing the project anGJ provide a plan for success fully
c ompleting the project within the scope, schedule and budget prop o sed 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). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application. 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.
School District Maintenance Supervisor, Jonathan Fitzpatrick, who has overseen the previous
projects, will manage this venture. Paperwork for the grant will be managed by the district grant
coordinator, Priscilla Goulding; management of the budget including purchasing and tracking
the bud get will be the district Business Mana ger and Purchasin g Coordinator, Lucienne Smith .
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Grant Application -Heat Projects
P1 fill ease 1 £ 'd db 1 out orm prov1 e e ow. y ou may a dd dd' . 1 d d a 1t10na rows as nee e .
Milestones Tasks Start Date
Feasibility studies Completed for Thorne Bay (2006),
Alaska Wood Energy Development
Task Group
Completed for Naukati (2008), Dan
Parrent, Juneau Economic
Development Council
Application submitted Grant manager completes
application 9 .24 .13
AEA Grant awarded Notice of award mailed/emailed Soring 2014
RFP put out for final design Advertise RFP 6.2014
Project design Engineer designs project 8 .2014
Design submitted to School Board decision point-any changes or
concerns 9 .2014
Construction of wood fuel storage Project manager directs work, hires
buildings; Whale Pass, Naukati, any additional workers
Hollis 10 .2014
Boilers ordered , plumbing, Project manager orders materials ,
electrical supplies supplies, equipment 10 .2014
Boilers from TB moved to other Northland Services moves existing
sites boilers from Thorne Bay 6 .2015
construction of boiler buildings Project manager monitors work to
ensure timely completion of phases. 7.2015
Complete construction Finalize construction, complete
check-list. 12.2015
Integration and testing Project manager completes test-run
and engages new systems 1 .2016
Decommissioning of old systems Project manager will supervise de-
commissioning 1.2016
Commissioning and start-up start-up of boilers , begin collection
of data. 1.2016
Operations reporting This is done on an annual basis by
the project manager for 10 years
following start-up 2016
3.3 Project Resources
End
Date
9 .24.13
7.2014
9_2014
9.2014
fall 2015
11 .2014
6 .2015
9.2015
12.2015
1.2016
1.2016
1.2016
2026
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 k now n, ke y perso nn e l, contractor s, and
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
suppliers as an attachment to your application.
Key personnel for school district
Jonathan Fitzpatrick, Maintenance Supervisor, Southeast Island School District-Project
Manager
Lauren Burch, Superintendent, Southeast Island School District -Project Supervisor
Lucienne Smith, Business Manager, Southeast Island School District-financial reporting
Priscilla Goulding, Grant Coordinator, Southeast Island School District-grant procedures and
paperwork
Equipment
In the previous grant, we purchased Garn boilers and are confident that this equipment is a
good fit for our systems. The units work well with the type of wood we are using . We will
purchase two 3200 Garn boilers to replace the ones in use in Thorne Bay, so the two Garn Pacs
already in place can be taken to the smaller sites , Whale Pass and Hollis . Two 2000 Garn
boilers will be purchased for Naukati. The supplier will be Dave Frederick, Alaska Heat
Technology, and the district has purchased boilers from him in the past for Kasaan, Thorne Bay
and Coffman Cove Schools. Other equ ipment will include electrical and plumbing supplies and
BTU meters . We will not need equipment to dig trenches for underground piping as the district
has recently purchased a Bobcat for such projects.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Pl ea se p rovide an alternative contact person and their contact information.
The site maintenance supervisor will report weekly to the superintendent on the status of the
project. There will also be a monthly report to the school board . Summaries can be sent to the
AEA on a weekly or monthly basis as needed. Maintenance work logs and work orders will be
maintained at the District Office . A monthly financial report is required for the School Board on
all projects, along with a grant report. These reports detail expenditures and progress for the
board and the superintendent. A copy of the School Board minutes and packet are kept at
Southeast Island School District Office and will be available on the SISD website .
3.5 Project Risk
Discuss potential problems and how you would address them.
Potential Problems Solutions/strategies
Barges delivering equipment do not make Remind maintenance to plan ahead, anticipate
scheduled runs delays and adjust as soon as possible to stick
to the timeline .
Unforeseen price overages due to increased 15% overrun factored into the budget
fuel, metal prices, or freight char.qes
Delays in manufacture of the Gam boilers Notify the dealers early of deadlines for
installation of boilers, order barge-delivered
items early, correspond with Gam Dealer
regularly, order from Seattle for southeast
project if it was unavailable in Alaska
Wet wood Plan ahead to cut enough wood to start drying
well in advance of anticipated operation. No
blasting is required for site preparation for the
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
wood storage sheds, so these can be built
quickly before the rest of the project is
underway.
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 ad~tanced phase •. submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted .
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
The potential wood resources available on Prince of Wales Island are approximately 20-40 MMBF
(million board feet) per year. One seven-year timber sale coming up is 102 MMBF. The Timber
Management Assistant at the Thorne Bay Ranger District reports that out of this type of sale, 15-
20% is "utility volume," and can be used for firewood or cull logs. He stated that there are about
127 years of volume in our area of the Tongass. In addition to National Forest land, there are also
other sources of wood available, along with waste wood from the local sawmills.
Feasibility studies have been done for Naukati and Thorne Bay and findings indicate that there is
plenty of biomass available.
Pros: The school is located in the Tongass National Forest, the largest national forest in the
nation. Wood sources are located very close to each school in the project. Wood can be stored
for a long time, and is a renewable, sustainable resource. Even the ashes can be used in local
greenhouse gardening projects. With four existing boilers (two in Coffman Cove's Howard
Valentine School, and two at Thorne Bay School), we confirm that firewood is available at a
reasonable cost. One business has bought equipment for cutting and splitting wood and has a log
deck with enough wood for ten years sitting within one mile of the largest school, Thorne Bay.
Cons: This system will take up more space than a diesel system and wood needs to be kept dry
for maximum efficiency. It requires more labor than turning up a thermostat.
Item Pros Cons
Continues Using Diesel Requires no changes to High fuel prices, money
Fuel-don't supplement existing heating system at leaves community, no local
with wood fired boilers. the schools and doesn't job created, fluctuating diesel
create any new industries in prices create no stability for
Southeast Alaska, Prince of estimating budgets, no
Wales or local towns. economic development -
families leave communities,
schools close.
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Grant Application -Heat Projects
Wood source Locally available -Sawmills,
slash piles , thinning projects,
wood sources located on
Prince of Wales, in and near
school sites. Renewable
nontoxic , energy source.
New wood products A wood pellet industry is
developed being developed on Prince of
Wales Island and they will be
able to produce bio-bricks to
be used in the Garn Boilers .
A new business could be
created in towns with schools
delivering the product to
homes and the school.
Allows for partnership
development among entities
in Southeast Alaska and
groups on Prince of Wales
Island.
Amount available 270 MBF available
Renewable resources with
potential to use species not
considered marketable such
as Alder and second growth
thinning slash.
A business established
recently is less than one mile
from Thorne Bay School , and
has 1 0 years worth of
firewood on its log deck.
Wood contracts Local people willing to bid
contracts , creating jobs, and
keeping families and children
in community to keep small
schools open. With local
people supplying wood it is
easy to contact them and
follow up on contracts.
Wood condition Lots of dead standing wood,
and thinning slash, located
close to school sites . Large
amounts available very close
to all four school sites . Only
requires short drying time for
use of product.
AEA 2014-006 Grant Application Page 10 of 33
After years and years of use,
easy access to the wood
sources could necessitate
farther travel and increase
the cost.
Transportation costs to get
pellets to the school site
might increase the fuel costs
and reduce savings to school
district.
Pr iorities for product use may
not favor rural and remote
towns.
Some distant areas of
harvest could be more than
50 miles from school site.
Might require and investment
into new equipment to
harvest new sources of wood
biomass, (thinning for
example).
Competitive process, might
be awarded to an outside
bidder who will raise the
price of wood and decrease
school district savings.
Requires deadline dates in
the wood supplier's contract
and follow up by
maintenance personnel to
ensure supply.
Has to be stored out of the
weather, ahead of time in
order to reduce moisture
content. Green wood will
need to be stored for a
longer period than dry wood,
taking up more space.
7/2/2013