HomeMy WebLinkAboutApplicationJOio
Craig City Sch~l!?s!~!!!~
September 20, 2013
Alaska Energy Authority
813 West Northern Lights Blvd .
Anchorage, AK 99503
Dear Sir:
engaging
P.O. Box 800 Craig, Alaska 99921
www.craigschools.com
Phone (907)826.3274, FAX (907) 826.3322
society.
The Craig City School District is pleased to submit an application for funding for a new biomass boiler
to heat Craig High School through the Alaska Renewable Energy Fund Round VII.
Biomass heating has proven successful on Prince of Wales Island and there is an abundance of
renewable biomass energy currently available as a waste product from mill operations. This project
will increase education about biomass fuel systems while providing significant cost savings and
energy efficiency to the Craig City School District.
The City of Craig has provided a resolution of support for the project. The Craig Board of Education
is scheduled to approve a resolution supporting this application at its regular meeting on September
25, 2013 . As this is after the due date for applications , we have included a copy of the resolution
being presented to the Board and will provide a signed copy after the meeting.
Thank you for the opportunity to apply for this funding and we look forward to working with the AEA
on this project. If you have any questions or need any additional information please feel free to
contact Greg Head , Maintenance Director, at (907) 965-1722 or myself at (907) 826-3274 , Ext 3003 .
Sincerely,
Enclosure
Renewable Energy Fund Round VII
Grant Application-Heat Projects
Application Forms and Instructions
This instruction page and the following grant application const itutes the Grant Application Fo r m
for Round VII of the Renewable Energy Fund Heat Projects only. If your appl ication 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 bo t h
application forms is available online at: www.akenergyauthority .org /REFund7.html.
• If you need technical ass istance filling out this applica ti on , please contact Shawn Ca lfa,
the Alaska Energy Authority Grant Adm inistrato r at (907 ) 771 -3031 or at
scalfa@aidea.org .
• If you are applying for grants for more than one project, provide separate appli cation
forms for each project.
• Multiple phases for the same project may be submitted as one appl ic ation .
• If you are apply ing for grant funding for more than one phase of a proj ec t, prov i de
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 a re requesting
fund i ng 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 appl ication , either provide an electron ic version of the document with
your submission or reference a web l ink where it ca n be downl oaded 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 provi de 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 disclosu re req uirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web s ite after f inal
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 subj ect to review a nd approva l by the
Authority . If you want information is to be kept confidential th e applicant must:
o Request the information be kept ~onfidential.
o Clearly identify the information that i s the trade secret or propri etary in thei r
application .
o Receive concurrence from the Authority that the informati on will be kept
confidential. If the Authority determines it is not confid ential it wil l be treated as a
public record in accordance wi th AS 40.25 or returned to the a pplicant up on
request.
AEA 2014-006 Application Page 1 of 27 7/2/2011
Renewable En e rgy Fund Round VII
Grant Application -Heat Pr ojects
SECTI O N 1 -APPLICANT IN FORMATIO N
Name (Name of utility, IPP, or govern ment entity s ubmitting p roposal)
Craig City School District
Ty pe of Entity: School District K -12 Fiscal Year En d June 30
Tax ID # 92-6000091 Tax Stat us: __ For-profit __ Non-profit ~G ove rnment ( check one)
Dat e of last fina ncial statement audit: June 30,201 3
Mailing A ddress Physical A ddress
P .O. Bo x 8 0 0 100 School Rd .
C raig , Alaska 99 921 Craig, Alaska 99921
Telephone 907-826-3274 Fax 907-826 -3322 Ema i l maintenance@craigschools.com
jwalsh@craigschools.com
1.1 A P P LI CANT POI NT O F CO NTAC T I G RA NT S MA NAG ER
Name T it l e
Greg Head Maintenance Director
Mailing Address
P.O . B ox BOO Craig, AK 99921
Telephone Fax Ema il
907-826 -327 4 907-826-3322 maintenance@craigschoQis.com
907-965-1 7 22
1.2 APPLI CANT MIN I MUM REQ UIREMENTS
Plea se check as appropriate. If you do n ot to meet th e minimum appl ic ant requirem ent s, your
applicatio n will be rejected.
1.2.1 A s an A p plicant, we are : (put a n X in t he appropriate box)
An electric ut ility ho lding a certificate of publi c co nvenience and necessit y under AS
42 .05 , or
A n independent power producer in accordance w it h 3 AAC 107.695 (a) (1 ), or
A local government, or
X A governmental entity (wh ich incl udes t riba l co un c ils and housing aut horities);
xYes 1.2.2 Attached to this application is f orma l approval and endorsement f or the project by
or t he ap plican t's board of directors, executive management , or other governing
No aut h ority . If th e applica nt is a col laborative g roupi ng, a forma l approva l from each
participant's govern ing auth o ri ty is necessary. (I nd icate Yes or No in t he box )
xYes 1.2 .3 As an applica nt , we ha ve ad m ini strat ive an d financ ial manag e me nt systems a nd
or follow p roc u reme nt standards that comp ly w it h the standards set fort h in the grant
No agreemen t (Sect ion 3 of th e RFA).
xYes 1 2 4 If awa rded th e grant, we ca n comply with all te rms and c ond it ions of th e award as
or identified in th e Standa rd Grant Agreement templat e at
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
No htt(;:!.//www akenergyauthority org/veeQ/Grant-Tem(;:!late (;:!df. (A ny exceptions
should be clearly noted and submitted with the application .)
xYes 1.2.5 We intend to own and operate any project that may be constructed with grant
or funds for the benefit of the general publ ic . If no please describe the nature of the
No project and who will be the primary beneficiaries .
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
Craig High School Wood Heat Conversion
2.2 Project Location -Craig, Alaska
Include the physJcallocation of your project and name (s) of the commumty 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 longttude c oordmate s may be obtamed from Google Maps by findmg you project's locatton on the map
and then nght cltckmg wtth the mouse an d selecting "What ts here? The coordmates will be dtsplayed m the Google
searc h wmdow above the map m a format as follows 61 195676.-149 898663 If you would like asststance obtainmg
thts tnforrnat/On please contact AEA at 907-771 -3031
The project will be located at the Craig Hig h School , 1.5 mile Craig-Klawock Highway
Community Name: Craig, Alaska
Latitude/Longitude: 55 °29'19 .31 "N , 133° 7'42 .95"W
Street Address : 1950 Craig -Klawock Highway (1 00 Panther Drive)
2.2.2 Community benefiting-Name(s) of the community or communities that will be the
beneficiaries of the project.
The project will primarily benefit the community of Craig but by allowing more funds to be
allocated to education and not the purchase of fos s il fuels children of the communities of
Klawock, Hollis , Thorne Bay and Coffman Cove who attend sch o ol here will also ben efit.
2.3 PROJECT TYPE
Put X m boxes as appropria te
2.3.1 Renewable Resource Type
W ind 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 Ill. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commis s ion ing
2.4 PROJECT DESCRIPTION
Provide a bnef one paragraph descnpt1on of the proposed heat project
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Renewable Energy Fund Round VII
Grant Application -Heat Projects ENERGY AUTHORITY
This project will consist of engineering and layout, acquiring the machinery and installation of
fuel delivery systems and biomass boilers to be integrated into the existing heat system of the
Craig High School and thus eliminate the use of oil for fuel.
The system will use dried wood fuel from the AEA funded dryer at Viking Lumber and benefit
Viking by expanding the market base for dry wood fuel.
The installed boilers would heat the 52 ,219 square foot high school using wood chips generated
by operations at a local lumber mill. Feedstock for the mill and the resulting wood chips comes
from timber logged from the nearby Tongass National Forest , Southeast Alaska State Forest,
Alaska Native Corporation lands and other private lands. The project is similar in scope to the
Craig Wood Fired Boiler and will share an existing contract to provide wood chips for the boiler.
A Preliminary Feasibility Assessment for Conversion from Fossil Fuel Oil to Wood Heating for
the Craig High School, Craig, Alaska was prepared for the Craig City School District by Robert
Deering , Biomass Program Manager, USDA Forest Service , Tongass National Forest. A copy
of the study is attached to this application. An Energy Audit has been completed for the facility
and is attached to this application .
2.5 PROJECT BENEFIT
Brie fly discuss the financial and public benefits that will result from th1s heat project, (such as reduced fuel
costs, lower energy costs. local jObs created etc.)
1) The most important benefit to the community and the district is the elimination of
approximately 400 ,000 gallons of fossil fuel at the Craig High School over 20 years .
2) The project will realize approximately $55,000 -$60 ,000 annually . The project is
estimated to have a 1. 72 benefiUcost ratio compared to the current oil heating system
and will result in fuel cost savings of $2 .1 million -$2 .6 million over 20 years
3) In times of fuel shortages wood heat will provide a safe warm community center.
4) The project will reduce emissions related to the existing oil boiler system and delivery of
oil to the area ·
5) The project will increase local jobs related to drying and hauling wood chips
6) The project will help create economy of scale savings for other biomass heating plants
on Prince of Wales Island and encourage development of heating systems that reduce
reliance on fossil fuels
7) The project will provide budget relief to the Craig Schools
8) The project will provide public education in the advantages of wood heat and local fuel
sources
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds , and the nature and source
of other contributions to the project.
The microchip boiler and installation engineering is estimated to cost $502 ,850 . Energy
Efficiency Measures committed or completed provide $82 ,550 in in -kind match and the district
will include $10,000 cash match .
1) AEA Renewable Energy Fund ............................ $492,850
2) Craig City School District. ................................... $10 ,000
3) Energy Efficiency Improvements (in -kind match) ...... $82 ,550
4) City of Craig will include the school district in their fuel delivery contract and will provide
any assistance the district may need for equipment, project oversight or manpower.
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Grant Application -Heat Projects
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 $492,850
2.7.2 Cash match to be provided $ 10,000
2.7 .3 Total In-kind match to be provided (sum of lines below) $82,550
Biomass or Biofuel inventory on hand $
Energy efficiency improvements to buildings to be $82,550
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) $585,400
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 Su mmary from Cos t Worksheet, Sec tion $585,450
4 4 4, in cluding est1mates through co nstruction.
2.7.8 Additional Performance Monitoring Equipment not covered $
by the project but required for the Grant Only applicable to
con struction phase projec ts
2.7.9 Estimated Direct Financial Benefit (Savings) $2,234,466
2.7.10 Other Public Benefit If you can calcula te the benefit in terms $
of dollars please prov1de that number here and explain how you
ca lcula ted that number in Section 5 below
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 3 -PROJECT MANAGEMENT PLAN
ENERGY AUTHORITY
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
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 .
Greg Head is the anticipated project manager. Mr. Head is the Craig School District
Maintenance Director. For the past five years Mr. Head has been the boiler operator for the City
of Craig 's wood boiler, which provides heat to the Elementary and Middle Schools . Mr. Head
operated co-gen biomass boilers and has been in the lumber and wood business in Alaska
since 1969.
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.
Pl fill t ft "d db 1 ea se 1 ou orm prov1 e e ow. y ou may a dd dd"f a 1 10na d d row s as n ee e .
Start End
Milestones Tasks Date Date
Let Engineering Bid Advertise and get board approval 1/1/14 1/21/14
Complete engineering and Review and approve 1/22/1
inspector appointment 4 1/3 1/14
Let Equipment Bid Advertise and approve 3/1/14 3/14/14
Let Construction Bid Advertise and board approval 3/7/14 3/28/14
Equipment delivery Certify equipment 6/1/14 6/1/14
Commence Constru ctio n Certify qualified contractor with eng ineer ing 6/2/14
Insp ector certify In co njunction with engineering firm 6/2/14
Complete Construction Certify quality 6/2/14 9/1/14
Inspector certify (punch list) Check with eng ineers, inspector and
operational manager that project is operational 9/1/14
Wood del ivery and startup All involved 9/1/14 9/14/14
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Grant Application -Heat Projects
3.3 Project Resources
ENERGY AUTHORITY
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 anti ci pate 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 .
Personnel: Craig City School District and City of Craig personnel used to accomplish the
project include the following persons :
1 . Mr. Jack Walsh , Craig City School District Superintendent. Mr. Walsh will oversee all
components of the project. He will execute all official documents relevant to the project.
2. Mr. Greg Head , Craig City School District Maintenance Supervisor. Mr. Head will
oversee all technical aspects of the siting , purchase , installation and operation of the
biomass boiler system .
3 . Mrs . Karen Head , Craig City School District Business Manager. Mrs . Head will complete
required grant reports , oversee issuance of purchase orders , be responsible for grant
accounting , will assist with the procurement process and be the point of contact between
AEA auditors and the Craig City School District. Ms . Head has been with Craig Schools
for over 20 years and has overseen multiple school construction projects and one new
school construction .
4. Mr. Jim Stevens , Mr. Stevens will assist in communications and coordination to all
parties, has been with Craig Schools for eight years and is experienced in construction
projects .
5 . Mr. Brian Templin , City of Craig Planner. Mr. Templin will assist with permitting and
environmental documentation needed by the project. Mr. Templin is the primary point of
contact for permitting and environmental review issues for the City of Craig and has 10
years overseeing permitting and environmental review of city projects .
Partners: Project partners w ill include the following:
1. City of Craig . The City of Cra ig will partner with the Craig City School District on this
project. The city will incorporate fuel requirements for the new boiler into its current
contract to supply biomass fuel for the city 's biomass boiler. The city will also provide
technical assistance as an owner/operator of a 4 MMBTU/hr biomass heating system .
The city will provide staff time for the city planner to assist the school district with
permitting , environmental documentation and other grant project related items .
2. Viking Lumber. Viking Lumber Co . owns and manages the biomass resource necessary
for the project. The resource is available in substantial existing stockpiles, and from
future mill ing operations . Nearly all of the logs at the mill originate on public national
forest lands. Viking Lumber has recently installed a chip drying system which w ill allow
them to produce and provide biomass at an optimum moisture content to be burned in
the new system. Viking Lumbe r Company personnel have the operational experience
and ability to install and operate equipment needed to dry the biomass raw materi al to a
condition that makes it ideal for combustion in wood-fired bo ilers . The company is in an
excellent position to manage its wood waste stream to efficiently supply biomas s to the
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
drying equipment and subsequently store and deliver the dried product.
Contractors :
1. Project Inspector. The project inspector will review the contractor submittals for
compliance with requ irements listed in the bidding documents . The inspector will also
make regular on-site visits to ensure proper installation of the boiler and associated
mechanical systems . The contractor will also assist with project start up and completion
of punch list items .
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 .
Mr. Head and Mr. Stevens will be at the construction site on a da ily basis . Regular construction
meetings will be held to insure adequate channels of communications and progress reporting
are available to all concerned . Construction meetings will detail recent accomplishments,
anticipated goals for the coming one to two week period , review the project budget , address
unanticipated problems , and attend to other project needs . AEA representatives will be welcome
to participate in person or by telec onference.
3.5 Project Risk
Discuss potential problems and how you would address them.
In Alaska there are always risks . With proper planning and preparation the risks involved in
construction will be minimized . Funding timing is a risk to meet the summer construction
window. Equipment delivery is a risk if deadlines are not met. The wood dryer funded by AEA
that is to be our fuel source is near completion so fuel supply should not be a risk ; the proposed
facility is next to the school building so pe rmitting and electrical needs have been met. If
oversight is in place it should be a very routine and low risk project.
SECTION 4-PROJECT DESCRIPTION AND TASKS
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs . other alternatives that may be
available for the market to be served by your project. For pre-construction applications , describe
the resource to the extent known. For design and permitting or construction projects , please
provide feas ibility documents, design documents, and permitting documents (if applicable) as
attachments to th is application .
The potential amount of available biomass energy available through this project is significant.
The Viking Lumber Mill typically produces more than 13,000 tons of biomass fuel each year. At
35 percent moisture content, local biomass fuel contains about 11 .25 million Btu per ton .
Therefore one ton of dried fuel can supply th e full heating demand of an 11 million Btu system for
one hour. For perspective, the City of Craig's wood boiler system, rated at 4 million Btu per hour,
is designed to supply the energy needs of 62 ,000 square feet of floor space and 11 3,000 gallons
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Renewable Energy Fund Round VII
Grant Application -Heat Projects ENERGY AUTHORITY
of heated pool water. The proposed system for the Craig High School will be approximately a 1
MMBTU/Hr system to heat 52,219 square feet and will burn approximately 194 tons of fuel per
year. Viking Lumber Mill's typical production far exceeds the required amount of biomass fuel
necessary for the existing city boiler system and the system proposed in this project.
There are many well-known benefits of using wood heat in both domestic and public/commercial
applications . These include keeping in local communities the dollars spent on heating fuel ;
creation of wood fuel supply jobs in local economies; elimination of sulfur range emissions from
combustion of wood fuels versus fossil fuels ; elimination of a net increase in greenhouse gas
emissions from combustion of wood fuels versus fossil fuels; and use of renewable, locally
produced fuels .
The City of Craig has , in conjunction w ith Viking Lumber and AEA, with the construction of a
wood fuel dryer provided the opportunity for more facilities to use dry wood chips as a clean
biomass fuel. Now dependable household s ized boilers will be able to use some of the previously
wasted fuel to offset continually rising oil prices.
The forest industry has always provided some risk here in Southeast in whether it will exist
tomorrow . But , the fuel dryer provides as much assurance of a sustained supply of fue l as can be
expected . Dryer operation does not depend on a single supplier so fuels can come from any of
the operations on the island . Small chippers already in operation for grubbing under power lines
and clearing right of ways and even private properties could provide thousands of tons of fuel
that today is discarded .
There is some risk as to the source of fuels in Southeast but not the volume or availability of the
resource . Our potential for fuel independence is great and real.
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?
Craig City School District will utilize a portion of the fuel drie d from the AEA equipment at Viking
Lumber and will become part of the Craig City fuel delivery contract with Viking. Viking uses
mostly federal land forests but also relies on State of Alaska and private timber. There is always
some risk of a dependable log supply for Viking but it is possible for other mills and independent
fuel suppliers to use the dryer. What is needed now is a larger dry fuel market to insure
continuous dryer operation .
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 existing heating system in the Craig High School consists of 2 Weii -McCiain boil ers each
prod uce 3.270,000 Btus per hour and drink 29 gallons of fuel to produce those Btus . The system
has 8" circulating pipe and oversized pumps . The rest of the heat system consists of fin tube in all
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