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HomeMy WebLinkAboutGrantApplication7_HeatRenewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Application Page 1 of 26 7/2/2011 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.akenergyauthority.org/REFund7.html.  If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at scalfa@aidea.org.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project.  In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are 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. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 2 of 26 7/2/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Tazlina Type of Entity: Fiscal Year End Tax ID # 089647056 Tax Status: For-profit Non-profit X Government ( check one) Date of last financial statement audit: Mailing Address PO Box 87, Glennallen, Alaska 99588 Physical Address Mile 110.5 Richardson Highway Telephone 907 822 4375 Fax 907 822 5865 Email prog.mang.tazlina@cvinternet.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Rickey Young Title Tribal Administrator Mailing Address PO Box 87, Glennallen, Alaska 99588 Telephone 907 822 4375 Fax 907 822 5865 Email Prog.mang.tazlina@cvinternet.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or 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 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 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 3 of 26 7/2/2013 SECTION 2 – PROJECT SUMMARY 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. Wood Chip Boiler for The Native Village of Tazlina. Or Cord Wood Boiler for The Native Village of Tazlina 2.2 Project Location – Mile 110.5 Richardson Highway 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. 62°03’07.02”N 145°25’38.95”W The boiler will be located at mile 110.5 on the Richardson Highway. There is a Community Hall, Community Clinic, office and shop here. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. This project will benefit The Native Village of Tazlina and The Association of Tazlina Residents. 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 X III. 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 wood chip boiler will be centrally located between the four buildings with underground insulated pex pipe running to all four buildings. The pipes will connect to existing boiler and furnaces through heat exchangers to supply required heat. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 4 of 26 7/2/2013 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.) This will benefit the community with lower fuel cost. Tazlina Village is currently receiving funds from the Bureau of Indian Affairs for a hazardous fuel reduction (HFR). We have a large stack of wood from that and another program Federal Highways. This wood can be chipped on the job and supply of wood chips for years to come. This is an excellent use of wood that would otherwise be burned in a brush pile 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. Boiler $34,380 + building 25,800 +mechanical $65,817 +electrical $5,300 +controls $10,256 project cost $37,311 = $178,864 + Wood Chipper (12 inch) $34,000 + 30,000 Bobcat = $242,864 contingency 10% = Total $267,150 - $5000 In-kind. Wood chips will be of no cost for years due to wood cutting crews from other grants. There will be in-kind labor of $5,000 to help set up the building. The Native Village of Tazlina is asking for $267,150 from Alaska Energy Authority to complete this project. Part of a 32 X 60 foot building can be used for chip storage. 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 $267,150 2.7.2 Cash match to be provided $0 2.7.3 Total In-kind match to be provided (sum of lines below) $5,000 Biomass or Biofuel inventory on hand $3000 Energy efficiency improvements to buildings to be heated (within past 5 years or committed prior to proposed project completion) $8,000 Other In-Kind match to be provided $ Dry storage place for wood chips 2.7.4 Other grant funds to be provided $0.0 2.7.5 Other grant applications not yet approved $0.0 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $267,150 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 5 of 26 7/2/2013 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $267,150 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $0.0 2.7.9 Estimated Direct Financial Benefit (Savings) $620,032 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. $ Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 6 of 26 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 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. Rickey Young will be the Project Manager. A Resume will be submitted electronically. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Design and Permitting Project scoping and contractor solicitation for planning and design 7/1/14 7/31/14 Permit applications as needed 8/1/14 8/15/14 Final Environmental Assessment and mitigation plans 7/1/14 9/3014 Resolution of land use, right of way issues 7/15/14 9/30/14 Permit approvals 12/15/14 12/15/14 Final system design 7/1/14 9/30/14 Engineers cost estimate 9/30/14 10/1/14 Updated economic and financial analysis 10/1/13 10/15/14 Negotiated power sales N\A N\A Final business and operation plan 10/15/14 12/1/14 Construction Confirmation that all design and feasibility requirements are complete 12/1/14 12/15/14 Completion of bid documents 12/15/14 1/31/15 Contractor/vendor selection and award 2/1/15 3/1/15 Construction Phases Boiler and hardware ordered and received 3/1/15 6/1/15 Ground work completed 5/30/15 6/30/15 Building complete with boiler and controls 5/30/15 8/30/15 Integration and testing 8/30/15 8/15/15 Decommissioning old system N/A N/A Final Acceptance, commissioning and start up 8/15/15 8/31/15 Operations Reporting 8/31/15 5/15/17 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 7 of 26 7/2/2013 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Marce Simeon will be the bookkeeper for this project. She has been the Bookkeeper here at the Native Village of Tazlina since 2000. She has taken care of all payroll duties very effectively. A Resume is attached for Marce. After a RFP, an engineer with biomass experience will be put on contract to do a final design, economic analysis and purchase all needed equipment and supplies. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 8 of 26 7/2/2013 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. Rickey Young will be the primary contact and Greg Engebretson will be the secondary. The phone number for Rickey Young is 907 822 4375 Ext. 225 and cell number is 907 259 4376. The phone number for Greg Engebretson is 907 822 4375 ext. 230 and cell number is 907 259 4375. 3.5 Project Risk Discuss potential problems and how you would address them. The wood chip boiler here appears to be a great fit, but is unproven in Alaska. Information from the Mentasta installation will allow a test for the Portage and Main Chip boiler. If the boiler performs adequately, then Tazlina will pursue this boiler. If the boiler does not perform then Tazlina will adjust to a cord wood boiler, either a Garn boiler or a wood gun as an alternative boiler type for installation. A pellet-fired boiler will be considered but does not have quite as good benefit: cost. Tazlina included each of these boiler types in its feasibility studies and has enough information for each boiler type to move to final design and construction. Operations and maintenance Plan: A key issue in the success of any biomass project is having a sustainable Operations and Maintenance plan. Our initial plan is developed for a small chip boiler and will be adjusted for a cord wood boiler or pellet if necessary. Tazlina has a full time maintenance person that will be trained in the boiler operation, loading and feeding and needed maintenance. Maintenance is critical but minimal for each boiler type being considered on a daily basis. If a chip fired boiler is installed, loading will take place on an as needed basis but is not anticipated to be more than twice per week during coldest weather. If a Garn boiler is installed, we anticipate the need to fill the boiler up to 3 times per day. This will be the job of our maintenance man. After hours filling will be done as needed, but we recognize the need to have oil for our fuel oil boilers in case the cord wood boiler is not fired on some evenings or weekends. This issue is why we would prefer a chip boiler that auto feeds. A reliable supply of wood is not an issue. The Native Village of Tazlina has vast forested area that can be used for cutting wood by employees if needed. We fully anticipate that the summer work crew will be able to supply the wood for the whole winter. Another way to fill this need is to simply purchase the wood locally on the open market at $250-300 per cord. This method would supply work for local people and still be much less expensive than buying fuel oil. We expect to stock pile wood and allow to dry for at least one season prior to chipping or being cut into cord wood. 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 9 of 26 7/2/2013 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 Ahtna Land Department manages over 300,000 of commercial forestland within a 20-mile radius of the Native Village of Tazlina. See the attached letter and map from Ahtna. Ahtna has a NRCS contract to create moose habitat on 1500 acres within that radius and is exploring how to economically turn forest stands large enough into biomass available to villages at no cost other than chipping. The species are primarily black spruce and aspen with some cottenwood. Wood that would not commonly be usable for projects can still be used for wood chips. The Tazlina project manager has experience in chipping and storing wood chips from the projects in Gulkana as well as experience with garn boilers and using cordwood. Chips have been commercially available for $90 per ton. This may not be the case in the future as that company is selling out of business. However, with Tazlina’s work force we believe that we can produce chips from the moose projects as well as from fireline projects for less than $90/ton at 25-35% MC. Chips required for the boiler annually is approximately 120 green tons and less if lower MC. Local cordwood is typically black spruce and goes for $250-300 per cord. Pellets are currently $300 per ton from Fairbanks. Our plan is to utilize our summer wood crews to utilize the wood coming from the moose habitat projects as well as fire line projects. Wood will be stored in the woods for drying and then in the yard for chipping or cutting into cordwood lengths. We have the saws and trucks available to make this process work. The two feasibility studies for this project will accompany the grant papers. 4.2.1 Basic configuration of Existing Heating Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The community hall has a forced air furnace that is only a few years old. The hall also has an oil drip heater that was added 2 years ago in the event of an electrical outage. The office building has a forced air furnace that is older but still works well. The Clinic has a new hot water boiler that was installed in the summer of 2012. The shop has only been heated with space heaters when it is necessary to heat, but we are growing and are in need of full time heat there. 4.2.2 Existing Heating Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The Primary [re buildings are currently heated with fuel oil. Heating with wood chips will greatly Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 10 of 26 7/2/2013 reduce our dependence on oil. See attached Feasibility Study. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Primary energy sources in the Copper Valley include electrical produced by oil and hydro, wood and diesel fuel for heat. Ahtna has conducted complete studies of potential energy sources. Wood heat is still the best alternative economically to displace fuel oil. Many of the people of the Copper River Valley are dependent on oil and wood to heat their homes and business. Any time a project such as this is completed in the Copper River Valley it reduces the amount of fuel oil used. However, in our case of displacing just over 8,000 gallons will not affect the amount enough to change the price structure in the valley. Alaska Wood Energy Associates conducted a regional biomass study several years ago for Ahtna, Inc. which discusses the biomass market potential in the valley. Our project is small but will serve as an example for other on how to utilize biomass to displace fuel oil effectively. 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 Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods  Energy efficiency measures (building envelope) There are two biomass boilers being considered: a Portage and Main 500 chip boiler with a capacity of 500,000 BTUs per hour and a Garn 3200 boiler also with a capacity of 500,000 BTUs per hour. However the preferred if functionally feasible is the chip boiler which will displace 100% of the fuel oil required for annual heat vs the Garn which displacement will depend on feeding the boiler at night and weekends to displace 100% of the fuel oil. I cannot foresee any insurmountable barriers to this project. This project should be completed before ground freezes, as there will be a lot of backhoe work. The wood is secured from Ahtna land and projects. Our summer work crews will secure the wood. It will take approximately 7.6 acres of land to supply needed biomass. Ahtna has a project to work on 1500 acres over the next two years. The wood chip boiler will be connected to the buildings with heat exchangers that will connect to existing hot water system or forced air furnace. This is detailed in the first feasibility study and generally applies the same to each type of biomass boiler. The delivery system to the buildings will be through insulated pex water pipes buried in the ground. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 11 of 26 7/2/2013 The buildings are getting older and some upgrades are needed to help energy efficiency. Tazlina will be applying for a building upgrade grant to install greater energy efficiency measures. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership obtain harvest contracts and access issues. The site is owned by the Native Village of Tazlina. There will not have to be any right of way agreements. Tazlina has full access to Ahtna lands for biomass supply. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers Since the Native Village of Tazlina owns the land and there is no organized Borough in the Copper River Valley there will be no need for land or air permits. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers There will be none of these issues here on site in the Tazlina office site or on the Ahtna lands for biomass supply. The footprint of the system will not be on any land that is not already being used by Tazlina Village. There are no T&E species on Ahtna lands. All harvesting will recognize the State Forest Practices Act guidelines. 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. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 12 of 26 7/2/2013 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Boiler $34,380 + building 25,800 +mechanical $65,817 +electrical $5,300 +controls $10,256 + piping $10,00 + project cost $37,311 = $188,864 + Wood Chipper (12 inch) $34,000 + $30,000 Bobcat = $252,864 contingency 10% = Total $278,150 - $5000 In-kind. Wood chips will be of no cost for years due to wood cutting crews from other grants. There will be in-kind labor of $5,000 to help set up the building. The Native Village of Tazlina is asking for $267,150 from Alaska Energy Authority to complete this project. Part of a 32 X 60 foot building already in place can be used for chip storage. The AWEA engineer in the feasibility studies developed all boiler components costs. Standard industry costs were estimated for final design and permitting. Tazlina staff estimated the chipper and bobcat. These estimates are for the Portage and Main Boiler installation. If Tazlina decides on a cord wood boiler then the costs change to a total project cost of $255,446. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Electrical 38,382 KWh X.23 = $8,828 This is the current KWh used for everything last year. The boiler and pump will use 8165KWh and will cost $1633 per year. Maintenance and operations will be conducted by current employees and will be approximately .2 of an FTE. Total cost for M&) is $4000. 4.4.3 Heat Purchase/Sale The heat purchase/sale information should include the following:  Identification of potential energy buyer(s)/customer(s)  Potential heat purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project No heat will be sold. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below and provide most recent heating fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 13 of 26 7/2/2013 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 100% of biomass needed provided by Ahtna land 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 Other (gun furnace) 3 Boiler 1 ii. Rated capacity of generators/boilers/other Other (Oil furnaces) 275 Thousand BTU Boiler 140,000 BTU iii. Generator/boilers/other type Oil iv. Age of generators/boilers/other Three less than 4 years old. One is probably 12 - 15 years old. v. Efficiency of generators/boilers/other All around 80% efficent b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $400 ii. Annual O&M cost for non-labor $200 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 Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 8,078 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 Biomass Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 14 of 26 7/2/2013 (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [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] 116 green tons See page 15 and 16 of feasibility study. This replaces 100% of fuel oil. iv. Other Project Cost a) Total capital cost of new system $267,150 b) Development cost c) Annual O&M cost of new system $4,000 d) Annual fuel cost $10,400 Price if we have to buy all chips @ $90/GT Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 8,078 iii. Transportation b) Current price of displaced fuel $4.90 c) Other economic benefits Pay employee to chip wood and feed boiler. d) Alaska public benefits Hall use is less expensive, Clinic less expensive Heat Purchase/Sales Price a) Price for heat purchase/sale Project Analysis Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 15 of 26 7/2/2013 a) Basic Economic Analysis Project benefit/cost ratio 3.57 Payback (years) 6.5 years 4.4.5 Building Efficiency Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building.  if applicable.  Has an energy audit been performed No  thermal energy efficiency upgrades been completed? No  Building name Community Hall  Type or primary usage of the building Public events, Public meetings,  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 6:00 PM sometime longer  Single structure or multiple units Single structure  Total square footage Community Hall is 51 ft X 42 ft = 2,142 sq ft  Electrical consumption per year 13,256 KW  Heating oil/fuel consumption per year 8,078 This will go up as shop needs to be heated.  Average number of occupants 30 ? When? Please provide a copy of the energy audit, Have building No energy audits Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 16 of 26 7/2/2013 o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings  if applicable.  Has an energy audit been performed No  thermal energy efficiency upgrades been completed?  Building name Clinic  Type or primary usage of the building Medical Clinic  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 4:30 PM  Single structure or multiple units Single structer  Total square footage Clinic is 32 ft X 25 ft 2 story= 1,600 sq ft  Electrical consumption per year  16532 KW  Heating oil/fuel consumption per year Included in Community Hall bill.  Average number of occupants 5 ? When? Please provide a copy of the energy audit, Have building No Audit o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 17 of 26 7/2/2013  if applicable.  Has an energy audit been performed No  thermal energy efficiency upgrades been completed?  Building name Office  Type or primary usage of the building Provide services for village members  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 4:30 PM  Single structure or multiple units Single structer  Total square footage Office is 14 ft X 60 ft = 840 sq ft  Electrical consumption per year The office is on the same meter as the Community Hall.  Heating oil/fuel consumption per year The oil used is added together for all buildings.  Average number of occupants ? When? Please provide a copy of the energy audit, Have building No audit performed. o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings  if applicable.  Has an energy audit been performed ? No  thermal energy efficiency upgrades been completed?  Building name Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 18 of 26 7/2/2013 Shop  Type or primary usage of the building Public events, Public meetings,  Location Mile 110.5 Richardson Highway  Hours of operation 8:00 AM – 4:30 PM  Single structure or multiple units Single structure Total square footage 32’ X 60’ = 1920 square feet  Electrical consumption per year This building is on the Clinic meter  Heating oil/fuel consumption per year This building will only be heated full time after boiler is installed.  Average number of occupants 2 but at times we have had meetings with 100 people present here. ? When? Please provide a copy of the energy audit, Have building No audit. o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. o Estimated annual heating fuel savings  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 19 of 26 7/2/2013 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project. In order for the applicant to receive credit for heating fuel displaced the applicant must provide the most recent invoice for heating fuel purchased.  Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits The boiler will be operated by the tribal maintenance. The wood chips or cord wood will be supplied by the two brush crews that work every summer cutting trees and clearing brush. This will supply the amount for free for years to give this project a kick start. If something happens and neither crew would supply the wood, two or three people can be hired on a short-term basis to cut the wood and make the chips. The large tent shop that is already standing and is ready to heat with a double wall construction will be used for storing of wood chips that can dry for a year before being used if need be. We already have maintenance people on staff that will take care of the day to day operations of the wood chip boiler. The lead maintenance person is Greg Engebretson. He has years of experience in the field We have a general fund account that parts will be purchased from. Also all grants that we receive here pay a portion of the funds received for administrative fees that can Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 20 of 26 7/2/2013 be used for any maintenance operations. These funds are already paying for the support of the existing systems and will continue to do so in the event of a breakdown of the new wood chip boiler. I personally as the Tribal Administrator feel the need to report on this new system for years to come. I feel the information gathered from this project will benefit the whole state of Alaska for many years to come. This system appears to be a breakthrough in modern biomass heating technology. From the information in the feasibility study, I feel this will be a success story that all of Alaska and lower 48 states will want to know about. It is on a small scale and no great risk will be taken with little to lose and lots to gain. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The feasibility study has been done showing great support for the wood chip boiler. Wood has already been cut and stacked for this project. As soon as the grant is awarded and a wood chipper is bought the wood, already stored will be chipped. The large shop structure is already constructed on a full cement slab that will be used to store excess wood chips. This is where we need the Bobcat or some such small loader to move the chips around. The wood chip boiler may also be set up in this building, which would make use of excess heat from boiler to help heat that building. This would save the price of building a boiler building, but I don’t have a final design to see if this would be acceptable. One of the grants that are in place for this project are the Bureau of Indian Affairs Hazardous Fuel Reduction grant that pays a crew to cut wood and dispose of it. The other grant is from Federal Highways. This grant provides money for a crew to cut wood along road right of ways. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2013. There is no opposition known or anticipated for this project. This is a small community in which news travels fast and all the comments heard about this are positive. Local residents are waiting with anticipation at our results to see if they are going to buy one of these boilers. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 21 of 26 7/2/2013 Attached are the letters of support from local community representatives and other agencies. SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. The funding sources will be from AEA and in-kind from The Native Village of Tazlina. We also have a 32’ X 60’ building that part of can be used. Boiler $34,380 + building 25,800 +mechanical $65,817 +electrical $5,300 +controls $10,256 + $10,000 for piping project cost $37,311 = $188,864 + Wood Chipper (12 inch) $34,000 + 30,000 Bobcat = $252,864 contingency 10% = Total $278,150 - $5000 In-kind. Wood chips will be of no cost for years due to wood cutting crews from other grants. There will be in-kind labor of $5,000 to help set up the building. The Native Village of Tazlina is asking for $267,150 from Alaska Energy Authority to complete this project. Part of a 32 X 60 foot building can be used for chip storage. All reporting will be carried out as in accord with rules of grant agreement. We will also provide any information that may help AEA with any decisions on giving funding to others for the same boiler. Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Final Design 7/31/14 $ $ $12,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 22 of 26 7/2/2013 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 23 of 26 7/2/2013 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Construction and Commissioning $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $205,553 Materials & Supplies $ $ $ Contractual Services $ $ $ 37,311 Construction Services $ $ $ Other $ $ $ 24,286 TOTALS $ $ $267,150 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 24 of 26 7/2/2013 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 25 of 26 7/2/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Native Village of Tazlina Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature Dorothy Shinn Council President I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: PO Box 87 Phone Number: 907 822 4375 Fax Number: 907 822 5865 E-mail Address: prog.mang.tazlina@cvinternet.net Federal Tax ID #: 92-0068390 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 26 of 26 7/2/2013 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. One paper copy and one electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Rickey Young Signature Title Tribal Administrator Date