HomeMy WebLinkAbout0 Application Round VII Nenana Collaborative Biomass Heating System Project_HeatRenewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Application Page 1 of 40 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.
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Grant Application - Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Type of Entity: K – 12 Public School District Fiscal Year End: June 30
Tax ID #: 92-6000107 Tax Status: For-profit Non-profit X Government
( check one)
Date of last financial statement audit: FY13 Financial Statement due to be released October 2013
Mailing Address
PO Box 10
Nenana, AK 99760
Physical Address
2nd & C Streets
Nenana, AK 99760
Telephone
907.832.5464
Fax
907.832.5625
Email
supt@nenanalynx.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Eric Gebhart
Title
Superintendent
Mailing Address
Nenana City School District
PO Box 10
Nenana, AK 99760
Telephone
907.832.5464
Fax
907.832.5625
Email
supt@nenanalynx.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2 Attached to this application is formal approval and endorsement for the project by
the applicant’s board of directors, executive management, or other governing
authority. If the applicant is a collaborative grouping, a formal approval from each
participant’s governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement (Section 3 of the RFA).
Yes
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
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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.
Nenana Collaborative Biomass Heating System Project
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.
The project is located in Nenana, Alaska. The collaborative partners in the application for this grant
funding are the Nenana City School District, the City of Nenana, and the Nenana Native Council. All
three entities expect to derive benefit from this project. The location of the Nenana Biomass Heating
System Project is Nenana, Alaska (64.564075,-149.091442).
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The benefitting community will be Nenana, Alaska. The Nenana City School District has taken
the role of lead agency in the application and construction process. Within the community of
Nenana, the City of Nenana, the Nenana Native Council, and the Nenana City School District
have a history of successful, collaborative, working relationships to benefit the citizens of
Nenana and the surrounding area. The Nenana City School District, the City of Nenana, and
the Nenana Native Council have all passed resolutions in support of this community-wide
collaborative project.
The City of Nenana is located on the George Parks Highway in the Interior of Alaska, at the
confluence of the Nenana and Tanana Rivers. The community is approximately 56 miles
southwest of Fairbanks, 304 miles northeast of Anchorage, and 75 miles north
of Denali National Park. The present location of the community and its surrounding area has
been occupied historically by Athabascan Indians. In 1903, Jim Duke built a roadhouse/trading
post at this location to serve travelers on the Tanana River. Nenana later became a stopping
point on the Alaska Railroad and the George Parks Highway. Incorporated in 1921, it has a
current population of approximately 500 residents. Nenana is also home of the Nenana Ice
Classic.
The Nenana Native Council is the federally recognized tribal government for the Nenana,
Alaska area and has been operating since 1920. The Native Council currently has 762 tribal
members and the Traditional Council is comprised of nine elected members. The Tribal
members are primarily of Athabascan descent with a mix of other Alaska Native groups. The
village’s name, Nenana, has its origin in the Native word “Nenashna” meaning a “good place to
camp between rivers”. Nenana offers a rich and vibrant history, tied to its location. The early
Nenana site served as a fish camp and trading center for the Athabascan people of the area.
Subsistence hunting, fishing, and gathering activities are very important to the people of the
village.
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The Nenana City School District serves approximately 200 K-12 students at the Nenana City
Public School and approximately 700 correspondence students through the CyberLynx K-12
program, with satellite offices in Anchorage, Fairbanks, and Wasilla. The Nenana Student Living
Center is home to 88 high school students who come from all over Alaska to attend Nenana City
Public School. The Nenana School District is privileged to have an outstanding and experienced
staff and a strong record of academic and career-technical (vocational) education success. The
school board, administration, and staff take seriously the mission of providing the best possible
education to prepare youth for advancement in today’s complex world.
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 IV. Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
The “Pre-Feasibility Assessment for Integration of Wood-Fired Heating Systems Final Report”
dated July 24, 2012 states that, “Connecting the school with several nearby buildings with a
wood fired district heating system appears to be an economically viable project.” (p. 2 of 13) The
buildings for the City of Nenana include the Water Plant and the Fire Department. The building
included for the Nenana Native Council is the Youth Educational Resource Center (YERC),
which houses the Early Learning, Head Start, and Youth Center programs. The school district
buildings included in the project are the Nenana City Public School, the Administration Building,
the Warehouse/Vocational Education Building, and the Nenana Student Living Center. Though
the Nenana Student Living Center is located approximately six blocks from the Nenana City
Public School, the “Pre-Feasibility Assessment” states, “The additional energy saved by
connecting several buildings together offsets the significant additional cost of underground
piping and pumping costs. . . . Even with the significant piping costs, the extra pumping energy,
and the extra wood fuel needed to offset the heat loss of the long pipe runs, this option remains
the strongest relative to other options.” (p. 2 & 3 of 13)
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.)
As described in detail throughout this application, and in the Pre-Feasibility Assessment, and
the Update to the Final Report, dated July 20, 2013, the immediate and most obvious benefit is
the cost savings to the Nenana City School District, the City of Nenana, and the Nenana Native
Council through the direct reduction of heating costs for the buildings described in the
application. Based on the 2012 economic assumptions from the Pre-Feasibility Assessment,
assuming the project is funded, the school district, city, and Native Council will save an
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estimated $167,579 in fuel oil costs annually. (See Table 1.3 of the Update to Final Report.) For
FY13, the average price of heating fuel paid by the collaborative group increased from $3.60 per
gallon to $3.63 cents per gallon, an increase of just under 1%. Therefore, the financial figures
used in this application will be the same as those used on the FY12 application, unless
otherwise noted. The Update to the Final Report states, “In the past year, the energy costs have
essentially remained the same for electricity and fuel oil, so the energy costs of the original
report are still valid. The construction costs have also not gone up significantly in the past year,
so all the preliminary estimates of probable cost are still valid. The economic assumptions of
inflation rates have also remained the same. Considering the costs were preliminary and a
“broad brush” and 15% contingency was used for estimates, the 2012 report is still valid for use
in September, 2013.” (p. 1 of 3) The Final Design and Permitting work will yield the most
specific and reliable data for determining accurate construction costs and operational cost
savings.
Another substantial financial benefit of this project will be found in future applications for funding
from the State of Alaska Capital Budget. Each year, school district’s are required to approve and
submit to the Alaska Department of Education & Early Development a prioritized 6-Year Capital
Budget Plan. A copy of the current plan can be found in the “Attachements” to this application.
The Nenana City School District’s #2 priority, targeted for funding in FY16, is a new boiler
system to serve the main school building at an estimated cost of $834,400. The Nenana
Student Living Center requires a separate boiler upgrade at an estimated cost of $59,518 and
the City of Nenana’s boiler in the water plant is 37 years old and in need of replacement at an
estimated cost of $44,690. In each case, these boilers are no longer sufficient to meet the need
and demand as a primary boiler system. However, if this project is funded, all these boilers
would be sufficient to be used as “back-up” boilers, saving the State of Alaska Capital Budget
an estimated $938,608 in future diesel fuel boiler system requests/replacements.
This project will also provide an economic benefit to the Nenana community and surrounding
area. A bridge and road over the Nenana river, which was part of a state-wide bond package
approved by voters November 2012, will open up the sale of a significant amount of agricultural
land (178,000 acres) west of Nenana. In order to prepare the land for agriculture, it must first be
cleared by the purchasers. A biomass boiler, such as the one proposed in this application,
would allow for the wood that needs to be cleared, to be sold and used for fuel. This project
gives agricultural land purchasers a market for their trees, instead of them simply having to incur
the expense of being cleared and burned on-site.
Toghottele Corporation, a local Native Corporation, owns 138,000 acres of land, most of which
is forested. The corporation is actively managing their land and logging parts of it. They are
purchasing logging equipment, which has included a chipper. As the likely local supplier of wood
to the boiler, a biomass project in Nenana would help to bring employment opportunities to a
local Nenana corporation and stability and sustainability to the local economy.
The project will also assist in the remediation of the wildfire threat in the Nenana area by
utilizing wood that is removed from forested areas of both private area and State lands in a
strategic manner. This remediation should save State and Federal dollars in the firefighting
effort.
Lastly, this project is a collaborative effort among three entities within the Nenana community.
The previously funded projects researched by local Nenana stakeholders were biomass projects
granted to and built for single entities. The project planners were not able to find an existing
collaborative effort such as the one proposed in this application. Therefore, another project
benefit is that this project will be a successful integrated community effort that will maximize the
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efficiency of the central boiler system. This project will benefit the State of Alaska in that it can
be used as a model for other communities as they develop their own collaborative biomass
projects. This application’s model of collaboration will be able to be duplicated, modified, and
tailored to meet the individual and diverse biomass heating needs of any community that has
the same desire and has the public entities that will cooperate and work closely together as we
do in Nenana.
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 Nenana Collaborative Biomass Heating System Project is requesting $367,965.00 from the
Alaska Energy Authority for the purpose of project design development and permitting for a
central biomass boiler to serve the community of Nenana through the collaborative effort as
described throughout this application. In addition to the funds requested from the Alaska Energy
Authority, each of the local partners (The Nenana City School District, the City of Nenana, and
the Nenana Native Council) will provide an in-kind match to support the design development,
permitting, construction, and commissioning phases of the project. The in-kind match listed on
line 2.7.3 below, will cover matching work related to project design development and
engineering, permitting, preparation of project bid documents, advertising for bids, selection of a
construction contractor, handling of funds, and required reporting. When the collaborative team
submits an application for project construction funds, additional in-kind matching funds or cash
will be identified with regard to that phase of the project. The design and permitting funds
requested through this application from the Alaska Energy Authority are also expected to be
sufficient to see the project to completion and commissioning. If a need for additional
design/construction management funds becomes evident, the request will be made and
necessary documentation provided when the Nenana Collaborative Biomass Heating System
Project submits an application for construction and commissioning, during Round VIII of
Renewable Energy Fund Grant Applications.
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 $ 367,965.00
2.7.2 Cash match to be provided $
2.7.3 Total In-kind match to be provided (sum of lines below) $ 25,800.00*
Biomass or Biofuel inventory on hand $
Energy efficiency improvements to buildings to be
heated (within past 5 years or committed prior to
proposed project completion)
$
Other In-Kind match to be provided $ 25,800.00*
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) $ 393,765.00
*Additional design and permitting related in-kind hours will be contributed during the
construction phase of the project, along with significant in-kind matching dedicated to
actual project construction. These hours, along with land, material, labor, equipment,
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power, and related matching contributions, will be designated in the in-kind match of
Construction Funding application.
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.
$ 3,244,225.00*
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) $ $ 167,579 in Year 1*
$ 3,618,747 in Year 14*
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.
$ 938,608.00**
*For full annual details, see Appendix B Update to Final Report.
**Cost savings for not having to replace the existing primary boilers at the school facility, the
Nenana Student Living Center, and the city water plant. Though these boilers are no longer
sufficient to be primary boilers, they are sufficient to use as back-up boilers. See page 5 above.
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.
The Project manager will be Eric Gebhart, Superintendent of Schools for the Nenana City
School District. Mr. Gebhart has a Master's in Education and more than 19 years' experience as
a school leader/administrator. He is an experienced superintendent, principal, and educator and
has overseen the implementation of numerous successful education-enhancement programs
and initiatives and several large scale construction projects in the school districts in which he
has worked. Mr. Gebhart was appointed to the Governor's Council on Disabilities and Special
Education in 2007. He served the Council as Vice Chair from July 2009 to June 2011 and as
Council Chair from July 2011 to June 2013. He was reappointed for another three-year term on
the Council beginning in July 2013. Mr. Gebhart will coordinate the stages of the project and
adhere to project timelines. He will facilitate proper communication between the school district,
City of Nenana, the Nenana Native Council, and the chosen design and engineering firms, while
ensuring timely communication and reporting to the Alaska Energy Authority. Mr. Gebhart’s
resume is attached to this application.
Eric Gebhart, Superintendent
Nenana City School District
PO Box 10
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Nenana, AK 99760
Work Phone: (907) 832-5464
Work Fax: (907) 832-5625
E-mail: supt@nenanalynx.org
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
Project scoping and contractor
solicitation for planning and design
AEA Grant Funding Approved
AEA Grant Agreement/Paperwork signed
Solicitation of qualified
design/engineering development firm
Review and selection of qualified firm
July
1
2014
Aug.
31
2014
Permit applications (as needed)
Submit federal permit application(s), if
required
Sept.
1
2014
Nov.
1
2014
Final environmental assessment
and mitigation plans (as needed)
Determine what, if any, environmental
assessment is required
If required, complete environmental
assessment
If required, development and implement
any mitigation plans
N/A
N/A
Resolution of land use, right of
way issues
Determine site location
Determine piping paths
Resolve any right of way issues
Aug.
1
2014
Oct.
1
2014
Permit approvals
Resolve any federal permitting issues
with appropriate agency
Obtain federal permit approvals
Sept.
1
2014
Nov.
1
2014
Final system design
Develop and review preliminary designs
for building, boiler, and piping system
Comment and revise preliminary designs
Approve final system design
Fire Marshal Approval
Aug.
1
2014
Dec.
1
2014
Engineers cost estimate
Submit final system design to engineers
for cost estimate
Obtain engineers cost estimate
Dec.
1
2014
Dec
15
2014
Updated economic and financial
analysis
Perform updated economic and financial
analysis
Nov.
1
2014
Dec
31
2014
Negotiated power sales
agreements with approved rates
Determine which entity or what
administrative structure the collaborative
partners will use to operate the biomass
plant and distribution network
Develop and sign agreements that
designate the percentage each
collaborative partner will pay for the
biomass fuel and the operational and
maintenance costs of the boiler, building,
and piping structure.
Aug.
1
2014
Jan.
31
2015
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Final business and operational
plan
Develop a “draft” plan
Submit the plan to the collaborative
partners and the public for comment
Approve final business and operational
plan
Sept.
15
2014
Jan.
31
2015
Confirm that all design and
feasibility requirements are
complete
Internal review of design and feasibility
documents and requirements
Submit design and feasibility documents
to AEA
Resolve any issues and receive
confirmation from AEA that all
requirements are complete
TBD
TBD
TBD
TBD
TBD
TBD
Completion of bid documents
Develop bid documents and perform an
internal review of the documents
Submit the bid documents to AEA for
approval
Obtain approval from AEA and advertise
for bids
TBD
TBD
TBD
TBD
TBD
TBD
Construction/Vendor selection and
award
Review bid proposals and bid amount
Select contractor based on bids received
Notification of bid award
Begin bid dispute period
Give winning contractor “Notice to
Proceed” TBD TBD
Supervise Construction Phase
Supervise construction of all phases of
the project design
Answer/resolve design and engineering
questions/issues TBD TBD
Supervise Integration and Testing
Phase
Inspect construction of the building,
boiler, and piping system
Supervise/observe the testing of the
boiler and piping system
Develop “Punch list” TBD TBD
Supervise final acceptance,
commissioning, and start-up
Inspect and sign-off that punch list items
are completed
Sign-off that construction of building,
boiler, and piping system is complete
and operational as designed. TBD TBD
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, c ontractors, and
suppliers as an attachment to your application.
Personnel: Professional design and engineering services will be determined through a
competitive request for qualifications. Firm(s) with successful experience in the design,
engineering, permitting, and construction of integrated wood-fired heating systems and piping
systems between buildings in schools and/or other public facilities will be selected. Nenana City
Mayor, Jason Mayrand, will work closely with design and engineering personnel, particularly in
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facilitating the piping design and plan. In his role as city leader, he will be able to resolve issues
and conflicts and obtain all necessary permissions.
Contractors: These will be determined through a competitive bid process and managed by the
Project Manager with technical assistance from the professional design firm.
Accounting/Bookkeeping Personnel: Accounting and bookkeeping for the project will be handled
by Carl Horn, Business Manager for the Nenana City School District. Mr. Horn will ensure fiscal
accountability and transparency, monitor budgets and expenditures, and prepare required
financial reports. His resume is attached to this application.
Equipment: The need for heavy equipment during the “Design and Permitting” phases is not
expected. However, if a need were to develop for particular equipment, the Project Manager will
be able to facilitate the use of equipment owned by the Nenana City School District or the City
of Nenana. If the school district or city does not own the required equipment, the Project
Manager will assist in obtaining rental equipment from Fairbanks, Alaska, approximately 55
miles to the north.
Services: Through the professional design and engineering firm(s), professional cost-estimating
services will be utilized to facilitate optimal design and engineering decisions, estimate final
construction costs, and update and finalize the economic and financial analysis.
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.
A project communications plan will be developed as part of the project, and all project entities
(Nenana City School District, City of Nenana, Nenana Native Council, Alaska Energy Authority)
and professionals (designers, engineers, consultants, etc.) will be briefed on the plan.
Communications will be the primary responsibility of the Project Manager, who will work closely
with the project’s collaborative partners, designers, engineers, and consultants to accomplish
project milestones, meet timelines, and troubleshoot issues. The Project Manager with ensure
compliance with all communication and reporting requirements of the Alaska Energy Authority.
Locally, project updates will be shared with the Nenana community at the combined City, Native
Council, and School Board meetings which happen twice each year and at individual City,
Native Council, and School Board meetings at the request of the entities. For communication
purposes with the Alaska Energy Authority, the alternate contact person will be Nenana City
Mayor, Jason Mayrand. His contact information is below:
Jason Mayrand, Mayor
City of Nenana
PO Box 70
Nenana, AK 99760
Phone: (907) 832-5501
Fax: (907) 832-5503
E-Mail: nenana1@nenana.net
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3.5 Project Risk
Discuss potential problems and how you would address them.
The Nenana Collaborative Biomass Heating System Project has maintained a deliberate
approach with the intent of ensuring that the project would be both feasible and viable, and
through this sound process, minimize risk. However, not all circumstances can be foreseen and
until the project work begins, and design documents and the appropriate calculations and
research are done, not all circumstances will be known. Potential problems and how they would
be addressed are below:
The Pre-Feasibility Study identified an “existing gravel parking lot west of the
Administration building” (p. 9 of 13) as a potential location for the central heating plant. In
the event that this area turns out not to be a suitable location, the Project Director has
already identified two other potential locations that are centrally located, with access
from three adjacent streets.
Though no known conflicts are evident at this point in the planning, potential conflicts in
the underground pipe routing system may need to be resolved. The collaborative
relationship between the project partners and the relative openness and simplicity of the
platting in Nenana will allow for viable resolutions to any underground piping conflicts.
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 feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
The types of wood fuel available in the Nenana area include cord wood, wood pellets, and chipped
wood fuel. The estimated amount of wood fuel needed, of each wood fuel type, for the proposed
project, can be found in the chart below.
Fuel Oil (Gallons) Cord Wood (Cords) Wood Pellets (Tons) Chipped Wood (Tons)
87,800
767.3
699.5
1037.3
The amount of wood fuel shown in the table above is for offsetting 85% of the total fuel oil use in
the proposed project buildings. The Pre-Feasibility Study incorporated the moisture content of the
wood fuels and the wood burning system efficiencies in the above calculations.
Toghotthele Corporation, Nenana’s local Native Corporation, owns 138,000 acres of land and
most of it is forested. There are also state owned lands in the Nenana area. Over the past several
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years, wild fires have created a desire in the area to thin the forests in the Nenana basin to create
fire breaks. There are large tracts of land west of Nenana that are planned to be open for
agricultural development in the next few years. These lands, which contain a significant amount of
wood, will need to be deforested in order to be available for agriculture. There are currently
178,000 acres of land in the agricultural project. The Pre-Feasibility Study states, “There appears
to be a sufficient supply of wood fuel to support a wood fired boiler for this campus.” (p. 9 of 13)
Due to the abundance of forests surrounding Nenana, chipped wood appears to be the best wood
fuel energy source for this project. Toghotthele Corporation is actively managing their land and
currently logging in some areas. The corporation has also purchased a wood chipper. Should this
project be approved, Toghotthele Corporation would likely be the entity to provide the project with
chipped wood fuel for the central boiler.
An alternative wood fuel source would be wood pellets from Superior Pellet Fuels, out of North
Pole, Alaska. However, the cost of trucking pellets down the Parks Highway from North Pole to
Nenana does not appear to be as economically feasible as utilizing local wood fuels from the
sources described above.
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?
The types of wood fuel available in the Nenana area include cord wood, wood pellets, and chipped
wood fuel. The estimated amount of wood fuel needed, of each wood fuel type, for the proposed
project, can be found in the chart below.
Fuel Oil (Gallons) Cord Wood (Cords) Wood Pellets (Tons) Chipped Wood (Tons)
87,800
767.3
699.5
1037.3
The amount of wood fuel shown in the table above is for offsetting 85% of the total fuel oil use in
the proposed project buildings. The Pre-Feasibility Study incorporated the moisture content of the
wood fuels and the wood burning system efficiencies in the above calculations.
The forested lands around Nenana are owned by Toghotthele Corporation (Nenana’s local Native
Corporation), approximately 138,000 acres, (most of which is forested) and other lands are
currently owned by the State of Alaska. The agricultural land, approximately 178,000 acres
(currently forested), west of Nenana is in the process of being sold by the State over the next few
years. There will be a significant amount of wood removed as this land is developed. A biomass
boiler in Nenana will give developers a market for their trees as they clear land for agriculture,
rather than having the additional expense of disposal. Due to the presence of wild fires in the area
over the past several years, there is desire by local residents and the State to thin some of the
forested land and create fire breaks. The Pre-Feasibility Study states, “There appears to be a
sufficient supply of wood fuel to support a wood fired boiler for this campus.” (p. 9 of 13)
Due to the abundance of forests surrounding Nenana, chipped wood appears to be the best wood
fuel energy source for this project. Toghotthele Corporation is actively managing their land and
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currently logging in some areas. The corporation has also purchased a chipper. Should this
project be approved, Toghotthele Corporation would likely be the entity to provide the project with
wood fuel. Currently, there are no known limitations or restrictions to accessing the biomass
resources on either the Toghotthele or agricultural lands surrounding Nenana.
The primary types (species) of trees in the Nenana area are Aspen, Spruce, and Willow. The
quantity of biomass available can be estimated by acre. If a cord of wood weighs about 3,500
pounds and there is an average of 10 cords of wood per acre, then each acre would yield 35,000
pounds of wood or approximately 18 tons. Therefore, to meet the needs of the proposed
collaborative project, an annual harvest of 60 acres of wood is required. Since 138,000 acres of
land is owned by the Toghotthele Corporation and 178,000 acres of land will need to be cleared
for agriculture, the Nenana Collaborative Biomass Heating System Project has an abundant
supply of biomass for at least 5,267 years. This abundance of biomass will allow for the proposed
project to meet its need for biofuel and at the same time, allow Toghotthele Corporation to manage
their forested land in a sensible and proper manner.
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 Nenana City School District is responsible for the main city school building, the administration
building, the warehouse facility, and the Nenana Student Living Center. The City of Nenana is
responsible for the water plant and fire department. The Nenana Native Council is responsible for
the Youth Education Resource Center (YERC or Day Care as listed in the Pre-Feasibility Study).
The main school building is approximately 70,860 square feet in size. The original construction
was done in 1955, with additions in 1966, 1972 (Gym), and 1986. There are two boiler rooms in
the main school facility, one located in the original structure and one located in the gymnasium
section of the building. In a major mechanical system retrofit, completed approximately 16 years
ago, new heating water mains were installed throughout the facility, and the boilers were piped to
provide heat to this main loop. Therefore, any single boiler can provide heat for the entire facility.
The boiler room located in the original structure, houses two 2,503,000 Btu/hr output hot water,
fuel oil fired boilers. These boilers are in good condition, about 16 years old. The boiler room in the
gymnasium houses two 950,000 Btu/hr output hot water boilers. These fuel oil fired boilers were
installed in 1972 and are in fair condition, yet it is difficult for the school’s maintenance staff to find
parts when repairs are necessary for these boilers. Each boiler room also has a large 500 gallon
indirect domestic hot water heater, which uses boiler water as their heating source.
The Administration Building, constructed in 2005 is approximately 2,480 square feet. This building
is heated by a single 196,000 Btu/hr output hot water boiler. Both the fuel oil fired boiler and the
heating system infrastructure of this building are in good condition.
The 6,500 square foot warehouse facility was constructed in 1982. The building is heated by two
hot water boilers and the heating system infrastructure is in fair condition. One fuel oil fired boiler
is new, installed approximately two years ago. It is a 212,000 Btu/hr output hot water boiler. The
other, an original fuel oil fired boiler, remains in service. It is a 236,000 Btu/hr output hot water
boiler in poor condition. In the warehouse, domestic hot water is provided by a 30 gallon electric
water heater rated at 5.5 KW input.
The Nenana Student Living Center is a 32,700 square foot dormitory facility constructed in 2001.
Heat is currently provided by a single, original 1,372,000 Btu/hr output hot water, fuel oil fired
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boiler in good to fair condition. The heating system infrastructure is in good condition. Domestic
hot water is provided by a 623,000 Btu/hr fuel oil fired hot water heater with an 85 gallon storage
tank. Since the purpose of this facility is to house high school students during the school year, the
existing single boiler system puts the students, staff, and building systems at-risk in the event of
a prolonged outage, particularly during the cold winter months.
The Nenana City Water Plant facility is approximately 5000 square feet and was constructed in the
mid 1970’s. The building houses the equipment required to store, heat, and pump the community
water system. The existing boiler, a 1,110,000 Btu/hr output hot water, fuel oil fired boiler, is
original, installed at construction and in fair to poor condition. The heating system infrastructure is
also original and in fair condition.
The Nenana Fire Department building is an approximate 4,000 square foot facility constructed in
the early 1980’s. It is heated by two 272,000 Btu/hr output hot water boilers. These fuel oil fired
boilers are approximately ten years old and in good condition. The heating system infrastructure is
original to the building and in fair condition. Domestic hot water is provided by a 40 gallon electric
hot water heater rated at 4.5 KW input.
The Youth Education Resource Center (YERC), noted in the Pre-Feasibility Study as the Nenana
Native Council Day Care, is a 6,500 square foot facility constructed in 2006. Heat for the building
is provided by a 347,000 Btu/hr output hot water, fuel oil fired boiler. Domestic hot water is
provided by a 120 gallon indirect hot water heater using boiler water as a heating source. The
boiler and heating system infrastructure are both in good condition.
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.
Annual fuel use summaries for the seven project facilities are outlined in the chart below.
Annual Fuel Use Summary
Facility Name
Fuel Type
Avg. Use
(Gallons)
Current
Cost/Gallon
Approximate
Annual Cost
Nenana City
School
Fuel Oil
34,000
$3.60
$122,400
Administration
Building
Fuel Oil
1,600
$3.60
$5,760
Warehouse
Fuel Oil
4,200
$3.60
$15,120
Nenana Student
Living Center
Fuel Oil
28,800
$3.60
$103,680
Nenana Native
Council Day
Care
Fuel Oil
4,550
$3.60
$16,380
City Water Plant
Fuel Oil
10,700
$3.60
$38,520
City Fire
Department
Fuel Oil
3,950
$3.60
$14,220
Electrical energy consumption will increase with the installation of the wood fired boiler system
due to the additional power needed for biomass boiler components such as augers, conveyors,
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draft fans, and other necessary equipment. The wood fired boiler system will also require
additional electrical pumps to integrate the proposed project boiler system into the existing heating
infrastructure systems in each building. In the Pre-Feasibility study, “The cash flow analysis
accounts for the additional electrical energy consumption and reduces the annual savings
accordingly.” (p. 6 of 13)
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy use in the Nenana community and surrounding area consists mainly of fuel
oil, cordwood, propane, and electricity. Commercial properties and public facilities are primarily
heated with fuel oil, whereas many area homes use cordwood, with a fuel oil back-up furnace to
save on heating costs. Fuel oil will continue to have a viable market in Nenana for the foreseeable
future due to its dependability in cold weather and the need for back-up systems to alternative
fuels such as cordwood or wood fired boilers. Fuel oil is expensive. Through a bid process, the
City of Nenana and the Nenana City School District are able to obtain fuel oil at an average rate of
$3.60 per gallon. Area residents and commercial business that do not have the capacity to acquire
a bid rate pay significantly more per gallon.
Propane is not used for heating, but it does find some use in cooking stoves. Propane costs are
slightly less than electricity.
Cordwood has a large market in the Nenana area and is growing rapidly around the entire state
for residential use and some business applications. In Nenana, most households utilize cordwood
harvest and store their own wood fuel. Most cordwood furnaces in use are not efficient and create
a significant amount of smoke.
Wood pellets are a wood fuel available to be delivered by truck from North Pole, Alaska, which is
about 70 miles to the north on the Parks Highway. Shipping wood pellets such a distance is
expensive. Though available, there are no known homes, businesses, or public agencies that
utilize wood pellets as a bio-fuel source.
Electricity, provided by Golden Valley Electric Association, is utilized for lighting and other such
services. Electricity is not used for heating purposes, except in the case of small, individual space
heaters, usually in residential settings.
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
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Energy efficiency measures (building envelope)
According to the Pre-Feasibility Study, “Connecting the school with several nearby buildings with a
wood fired district heating system appears to be an economically viable project.” (p. 13 of 13)
Renewable Energy Technology Specific to Project Location: The Nenana
Collaborative Biomass Heating System Project will use a biomass boiler to help heat the
Nenana City Public School, the district’s administration building, the district’s
Warehouse/Vocational Education Center, and the Nenana Student Living Center. The
proposed project biomass boiler will also heat the City of Nenana Water Plant and Fire
Department and the Nenana Native Council Day Care facility. Wood chips will be made
from timber harvested in the region and burned in the boiler to heat water, which will heat
all proposed facilities by circulating hot water through connected piping to each building’s
existing heating system infrastructure. In considering the best option for biomass fuel, the
project chose wood chips as they are the lowest cost wood fuel ($/MMBtu) when compared
to wood pellets or cordwood. In addition, the boiler system can be automated to save
operational costs once the plant is up and producing, and the project will be able to utilize
local wood resources which will benefit the local economy and assist in good, local forestry
management.
Optimum installed capacity: A chipped wood biomass heating system will be designed
to meet approximately 85% of the typical annual heating energy use of the Nenana
Collaborative Biomass Heating System Project. The existing boilers in each facility would
be used for the other 15% of the time when heating needs are at their peak, when the
biomass boiler is down for servicing, or during swing months when the needed requirement
for heating each day is minimal. Based on calculations found on Table 5.2 – Proposed
Biomass Boiler Size of the Pre-Feasibility Study (p. 7 of 13), the Nenana Collaborative
Biomass Heating System Project should have a biomass boiler size of 5879 MBH.
Anticipated capacity factor: From Table 1.3 sited above, the anticipated biomass boiler
capacity factor is 0.6. Unlike a heating plant with a consistent base load, the proposed
biomass boiler will be used to heat several buildings which have a variable load. The
amount of heat generated by the proposed biomass boiler will be directly proportional to
the outside air temperature. The biomass boiler capacity factor of 0.6 is significantly better
than the existing heating equipment in the facilities it is proposed to replace.
Anticipated annual generation: From Table 5.2 sited above, the likely system peak of the
proposed biomass boiler system will be 9799 MBH. Based on the total current fuel oil
consumption of each project building, the proposed biomass boiler system is estimated to
use 1,037.3 tons of wood chip biomass fuel each year.
Anticipated barriers: The Pre-Feasibility Study document was formed with anticipated
barriers in mind and addressed those barriers. Additional concerns that will be evaluated
and resolved during this project phase may be in permitting the facility with State and
Federal representatives. An additional potential barrier may be with the installation of the
circulation loop heating lines and existing underground utilities, however this is scheduled
to be addressed during the design phase. At this time, no other barriers are perceived.
Basic integration concept: The integration of the Nenana Collaborative Biomass Heating
System Project system with the existing heating systems will be relatively straightforward in
each location. A field visit, performed as part of the process to complete the Pre-Feasibility
Study confirmed the location of each existing boiler room in order to identify the
approximate point of connection from the proposed project heating loop to each existing
building. The study proposes connections “achieved with arctic pipe extended to the face
of each building, and extended up the exterior surface of the building in order to penetrate
the exterior wall into the boiler room. Once hot supply and return piping enters the existing
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boiler room it would be connected to existing supply and return lines in appropriate
locations in order to utilize existing pumping systems within each building.” (p. 10 of 13)
Delivery methods: The central boiler structure will pump heated water through a closed
loop system connected to all of the projected facilities. Each facility will contain circulation
pumps to assist in the transmittal of the heated water and each facility will have a meter to
record flow rates and pressures. Delivery systems similar to this are used in Fairbanks as
well as nearby military installations. The Nenana Collaborative Biomass Heating System
Project will be constructed similar to any school or public facility capital project. The
building, boiler, and required systems would be designed and engineered by licensed
professionals who will generate construction documents suitable for securing professional
bids from qualified construction contractors. The successful contractor would then mobilize,
construct the building, boiler, piping systems, and all related project work.
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 current proposed construction site is on school property located adjacent to the Administration
Building. Should this site not be sufficient or optimal for the biomass boiler facility, two other
potential sites have been identified. One is already owned by the City of Nenana, a collaborative
partner, and the other is privately owned. In the event the privately owned site ends up being the
most viable, preliminary discussions with a representative of the owner indicates an openness to
consider trading the land needed for the project with a municipally owned lot in a different part of
the city. The project partners do not foresee any difficulty finding and securing the necessary and
viable property needed to complete the project.
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
List of applicable permits: According to the report provided by Resource Systems Group,
Inc. and found in Appendix D of the Pre-Feasibility Assessment for Integration of Wood-
Fired Heating Systems Final Report, the Nenana project “will not require an air pollution
control permit from the Alaska Department of Environmental Quality given the boilers’
relatively small size and corresponding quantity of emissions.” (p. 9) The proposed project
will be subject to newly proposed federal requirements under the Federal “Area Source
Rule” (40 CFR 63 JJJJJJ). Though a federal permit is not required, the collaborative
partners of the project will need to perform various record keeping, reporting and operation
and maintenance requirements to demonstrate compliance with the Area Source Rule.
Since the proposed changes have not been finalized, the following requirements remain
applicable:
1. Submit initial notification to EPA within 120 days of startup
2. Complete biennial tune ups per EPA method;
3. Submit tune-up forms to EPA
Other permits that will need to be researched and addressed would be State building
permits and approval of the project design by the State Fire Marshal. The City of Nenana
does not require city building permits.
Anticipated permitting timeline: Within 120 days of startup
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Identify and discuss other potential barriers: None that the project partners are aware
of at this time.
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
Threatened or Endangered species: None
Habitat issues: None
Wetlands and other protected areas: None
Archaeological and historical resources: None
Land development constraints: None
Telecommunications interference: The privately owned construction site mentioned
above is near a GCI field station. Should this site become the most viable option, the
project partners will need to consult with GCI to ensure that the proposed project does not
interfere with or damage field station communications or any underground system.
Aviation considerations: The Nenana Airport facility is over eight city blocks to the south.
There are no concerns in this regard.
Visual, aesthetics impacts: None
Identify and discuss other potential barriers: During the design and permitting phase,
air dispersion modeling will be conducted to determine the stack height and degree of
emission control. The project partners are not aware of any other potential barriers at this
time.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
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
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Total anticipated project cost, and cost for this phase: $3,244,225/$367,965
Requested grant funding: $367,965
Total Anticipated Project Cost: $3,244,225
Cost for the phase (Design & Permitting): $367,965 – Requested grant funding, this
application
Applicant matching funds – loans, capital contributions, in-kind:
Applicant matching funds are in-kind in the amount of $25,800*.
City Mayor: 240 hours = $13,200 (salary & benefits)
School Superintendent: 120 hours = $7,800 (salary & benefits)
School Business Manager: 80 hours = $4,800 (salary & benefits)
Identification of other funding sources:
Currently, there are no other funding sources under consideration.
Projected capital cost of proposed renewable energy system:
The projected capital cost of the Nenana Collaborative Biomass Heating System Project is
$3,244,225 + 25,800 = $3,270,025.
Projected development cost of proposed renewable energy system:
The projected development cost of the Nenana Collaborative Biomass Heating System
Project is $367,965 + 25,800 = $393,765.
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.)
Operating costs will be funded by avoiding the annual fuel oil costs:
Total fuel oil cost 87,800 gals @ $3.60 per gal $ 316,080
Project utilization factor for wood chip boilers 85%
Estimated avoided cost $ 268,668
Annual estimated operating cost
Projected tons of wood chips 1037.3
Fuel cost - wood chips @ $75 per ton $ 77,798.00
Other parts and materials $ 10,000.00
Inspections and contracted repairs $ 7,500.00
Utilities - electric power $ 15,000.00
Insurance $ 4,000.00
Maintenance labor cost wages and benefits
($33.50 x 515 hrs (1/4 FTE) $ 17,252.00
Direct administrative hours
($65 x 40 hrs) $ 2,600.00
Indirect administrative
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(accounting, personnel, bookkeeping
and audit @ 5%) $ 6,708.00
Total estimated annual operating cost $ 140,858.00
Projected cost annual cost savings $ 127,810.00
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
Identification of potential power buyer(s)/customer(s):
The power customers for the Nenana Collaborative Biomass Heating System Project are
the Nenana City School District, the City of Nenana, and the Nenana Native Council.
Based on current usage, outlined in Table 1.4 “Annual Wood Fuel Use Summary” on page
8 of 13 of the Pre-Feasibility Study, the Nenana City School District can expect to use
78.14% of the biomass energy produced, while the City of Nenana would use 16.68%, and
the Nenana Native Council 5.18%.
In preparation for this application, the collaborative has approached the State of Alaska
Department of Transportation (DOT) facility station in Nenana, located in the blocks
encompassed by 5th & 6th Streets on the north and south and D and E Streets on the east
and west. This facility is approximately 3 blocks from the proposed building site and about
3 blocks from the Nenana Student Living Center (See Appendix C of Update to Final
Report). The collaborative partners plan to ask the design professionals to consider routing
the piping to the Nenana Student Living Center along a path that would enable the project
to incorporate the Nenana DOT Maintenance Station in order to utilize the maintenance
station as a power customer. According to an e-mail received by Stephen Meierotto (see
attachments) the maintenance shop is a 3800 sq. ft. facility that required 5,317 gallons of
fuel oil for heat during FY13. Involving the Nenana DOT Maintenance Station would
expand the public entity use and support of the new boiler system, save the State of
Alaska money in the cost of heating the Nenana facility, and improve the feasibility of the
pipe run from the boiler plant site to the Nenana Student Living Center.
Secondly, the City of Nenana and the Nenana Native Council are applying for a
Community Development Block Grant in order to build a multipurpose facility to house new
city offices and a new clinic and counseling center. Though a location has not been
finalized yet, the city has lots available in the central core and along the proposed piping
routes that could enable the new facility to utilize the centralized biomass boiler system.
Lastly, the Nenana City Public Library is located approximately 320 feet from the Nenana
Fire Hall. The library facility is a city owned building. During FY2013 its heating fuel usage
was approximately 3200 gallons. The library building is located on the southwest corner of
2nd and Market Streets. During the Final Design and Permitting phase, if it makes
economic sense to include the city library in the final design plan, it will be included as well.
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Potential power purchase/sales price - at a minimum indicate a price range:
The Pre-Feasibility Study makes the assumption that wood chips will be delivered to the
proposed biomass plant at a cost of $75/ton. (p. 11 of 13) The projects estimated annual
requirement of wood chips is 1037.3 tons. The project’s cost for wood fuel is estimated at
$77,798 annually. The cost of operation and maintenance of the building, biomass
boiler, and piping infrastructure is estimated to be $63,060 annually. Therefore, the
estimated power/purchase sales price is $17.61/MBtu.
Proposed rate of return from grant-funded project:
Schedule of Cost of Heat by Facility/Customer
Estimated delivered 8,000
Cost per MBtu of heat
energy
$ 17.61
Current Current Annual Estimated
Cost
Unavoided
Fuel
Total Cost Projected
Saving
Fuel Oil Cost of Fuel Delivered
Mbtu
of
Delivered
Oil heating
at
BioMass
Heating
Over 100%
Facility Name Used Oil at $3.60 Wood Wood 15% of as proposed fuel oil
Nenana City School 34,000 $ 122,400.00 3,098 $ 54,547 $ 18,360 $ 72,907 $ 49,493
Administration 1,600 $ 5,760.00 146 $ 2,571 $ 864 $ 3,435 $ 2,325
Warehouse 4,200 $ 15,120.00 383 $ 6,744 $ 2,268 $ 9,012 $ 6,108
Nenana Student Living
Center
28,800 $ 103,680.00 2,624 $ 46,201 $ 15,552 $ 61,753 $ 41,927
Nenana native Council
Day Care
4,550 $ 16,380.00 415 $ 7,307 $ 2,457 $ 9,764 $ 6,616
City Water Plant 10,700 $ 38,520.00 975 $ 17,167 $ 5,778 $ 22,945 $ 15,575
City Fire Department 3,950 $ 14,220.00 359 $ 6,321 $ 2,133 $ 8,454 $ 5,766
87,800 $ 316,080.00 8,000 $ 140,858 $ 47,412 $ 188,270 $ 127,810
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Estimated Avoided Cost 268,668.00$ Operating cost 140,858.00$
Annual Cost Savings 127,810.00$ Total project cost 3,492,697$
Financial Discount Factor 3%
Present Value Current Net Benefit Years Cash
of Avoiced Project Present Cost (B/C)Flow equals
Costs Cost Value Ratio Project Cost
20 Year $3,566,024 3,492,697$ $73,327 1.02 16
30 Year $6,383,182 3,492,697$ $2,890,485 1.83 16
Avoided Operating Annual Cumulative
Cost Cost Savings Savings Year
268,668.00$ 140,858.00$ 127,810.00$ 127,810.00$ 1
282,101.00$ 145,084.00$ 137,017.00$ 264,827.00$ 2
296,206.00$ 149,437.00$ 146,769.00$ 411,596.00$ 3
311,016.00$ 153,920.00$ 157,096.00$ 568,692.00$ 4
326,567.00$ 158,538.00$ 168,029.00$ 736,721.00$ 5
342,895.00$ 163,294.00$ 179,601.00$ 916,322.00$ 6
360,040.00$ 168,193.00$ 191,847.00$ 1,108,169.00$ 7
378,042.00$ 173,239.00$ 204,803.00$ 1,312,972.00$ 8
396,944.00$ 178,436.00$ 218,508.00$ 1,531,480.00$ 9
416,791.00$ 183,789.00$ 233,002.00$ 1,764,482.00$ 10
437,631.00$ 189,303.00$ 248,328.00$ 2,012,810.00$ 11
459,513.00$ 194,982.00$ 264,531.00$ 2,277,341.00$ 12
482,489.00$ 200,831.00$ 281,658.00$ 2,558,999.00$ 13
506,613.00$ 206,856.00$ 299,757.00$ 2,858,756.00$ 14
531,944.00$ 213,062.00$ 318,882.00$ 3,177,638.00$ 15
558,541.00$ 219,454.00$ 339,087.00$ 3,516,725.00$ 16
586,468.00$ 226,038.00$ 360,430.00$ 3,877,155.00$ 17
615,791.00$ 232,819.00$ 382,972.00$ 4,260,127.00$ 18
646,581.00$ 239,804.00$ 406,777.00$ 4,666,904.00$ 19
678,910.00$ 246,998.00$ 431,912.00$ 5,098,816.00$ 20
712,856.00$ 254,408.00$ 458,448.00$ 5,557,264.00$ 21
748,499.00$ 262,040.00$ 486,459.00$ 6,043,723.00$ 22
785,924.00$ 269,901.00$ 516,023.00$ 6,559,746.00$ 23
825,220.00$ 277,998.00$ 547,222.00$ 7,106,968.00$ 24
866,481.00$ 286,338.00$ 580,143.00$ 7,687,111.00$ 25
909,805.00$ 294,928.00$ 614,877.00$ 8,301,988.00$ 26
955,295.00$ 303,776.00$ 651,519.00$ 8,953,507.00$ 27
1,003,060.00$ 312,889.00$ 690,171.00$ 9,643,678.00$ 28
1,053,213.00$ 322,276.00$ 730,937.00$ 10,374,615.00$ 29
1,105,874.00$ 331,944.00$ 773,930.00$ 11,148,545.00$ 30
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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 Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Chipped wood biomass fuel, minimum availability
of at least 100 tons/yr.
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 N/A – Nenana is part of the Railbelt grid
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor N/A – Nenana is part of the Railbelt grid
ii. Annual O&M cost for non-labor
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] N/A – Nenana is part of the Railbelt grid
ii. Fuel usage
Diesel [gal]
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] 93,100 Gallons (See Appendix B Update to Final Report)
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
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v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Biomass, 5.8 MMBtu/hr (output)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] N/A
ii. Heat [MMBtu] 8,630 MMBtu
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood or pellets [cords, green tons,
dry tons]
1037 green tons (30% MC) of chipped wood
iv. Other N/A
Project Cost
a) Total capital cost of new system $3,244,225
b) Development cost $367,965
c) Annual O&M cost of new system $63,060
d) Annual fuel cost 1037.3 tons @$75.00/ton = $77,798
Project Benefits
a) Amount of fuel displaced for
i. Electricity N/A
ii. Heat 83,100 Gal.(85% usage in 7 different collaborative project buildings + DOT)
iii. Transportation N/A
b) Current price of displaced fuel Pre-Feasibility Study reported average fuel oil price
@$3.60/Gal.; In FY13 average price was $3.63/Gal.
c) Other economic benefits Stable, long-term need for a vendor to supply
biomass fuel to the project; local employment
opportunities, increased demand for local source
energy to stimulate employment; future purchasers of
the agricultural land west of Nenana will have a
market for their trees; the city and school district will
not need to apply for State Capital Funds to replace
primary boiler systems
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d) Alaska public benefits This application will develop a collaborative project
model that can be duplicated in other rural/remote
areas; a community and school system will reduce its
need for fuel oil subsidies from the State;
management of local forested areas will assist with
fire mitigation, saving costs in fighting local wild fires
Heat Purchase/Sales Price
a) Price for heat purchase/sale Cost sharing among the three entities and any
additional buyers currently estimated @$17.61 MBtu
based on measured delivered heat to each facility.
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 20 yr B/C Ratio is 1.37; 30 yr B/C Ratio is 2.39
Payback (years) ACF = PC at 14 years (See Appendix B Update to Final Report)
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.
Building name:
o Nenana City Public School (S)
o Nenana School District Administration Building (SA)
o Nenana School Warehouse (SW)
o Nenana Student Living Center (SLC)
o Youth Education Resource Center (DC)
o City Water Plant (WP)
o City Fire Department (FD)
o Alaska Department of Transportation Nenana Maintenance Facility (DOT)
Type or primary usage of the building
o (S): K-12 Education
o (SA): District Administration and CyberLynx K-12 School Offices
o (SW): ½ District Storage and ½ School Wood Shop
o (SLC): Residential Housing for up to 88 High School Students
o (DC): Infant, Early Childhood, and Head Start Education
o (WP): Water Treatment Plant
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o (FD): Fire Department/EMS Training and Storage of Vehicles and Equipment
o (DOT): Department of transportation Road Crew, Equipment, and Maintenance
Location
o (S): Corner of 2nd & C Streets, Nenana, AK
o (SA): Corner of 3rd & D Streets, Nenana, AK
o (SW): 3rd Street, between D & E Streets, Nenana, AK
o (SLC): 610 E. 6th Street, Nenana, AK
o (DC): 3rd Street, between D & E Streets, Nenana, AK
o (WP): B Street, between 2nd & 3rd Streets, Nenana, AK
o (FD): Conner of 3rd & Market Streets, Nenana, AK
o (DOT): E. 6th Street, between D & E Streets, Nenana, AK
Hours of operation
o (S): 7:00 a.m. to 4:00 p.m., August through May
o (SA): 7:00 a.m. to 5:00 p.m. Year Round
o (SW): 7:00 a.m. to 4:00 p.m. Year Round
o (SLC): 24 Hours per Day, August through May
o (DC): 7:00 a.m. to 3:30 p.m., August through May
o (WP): 24 Hours per Day, Year Round
o (FD): Variable Hours, Year Round
o (DOT): Variable Hours, Year Round
Single structure or multiple units
o (S): Multiple Units
o (SA): Single Structure
o (SW): Single Structure
o (SLC): Single Structure
o (DC): Single Structure
o (WP): Single Structure
o (FD): Single Structure
o (DOT): Single Structure
Total square footage
o (S): 70,860 sq. ft.
o (SA): 2,480 sq. ft.
o (SW): 6,500 sq. ft.
o (SLC): 32,700 sq. ft.
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o (DC): 6,500 sq. ft.
o (WP): approximately 5,000 sq. ft.
o (FD): approximately 4,000 sq. ft.
o (DOT): 3,800 sq. ft.
Electrical consumption per year
o N/A
Heating oil/fuel consumption per year
o (S): 34,000 Gallons
o (SA): 1,600 Gallons
o (SW): 4,200 Gallons
o (SLC): 2,800 Gallons
o (DC): 4,550 Gallons
o (WP): 10,700 Gallons
o (FD): 3,950 Gallons
o (DOT): 5,300 Gallons
Average number of occupants
o (S): 250
o (SA): 10
o (SW): 25
o (SLC): 110
o (DC): 40
o (WP): 2
o (FD): 4
o (DOT): Variable
Has an energy audit been performed? When? Please provide a copy of the energy audit,
if applicable.
o The Nenana City Public School building (S) had an Energy Audit completed in
July 2012 by Nortech, Environmental Engineering & Industrial Hygiene
Consultants. A copy of the report is in the attachments section.
o No other facility in the collaborative project has received the benefit of an energy
audit.
Have building thermal energy efficiency upgrades been completed?
o If applicable, please provide evidence of efficiency improvements including cost
and anticipated savings associated with upgrades.
In August of 2012 and again in August of 2013, the Nenana City School
District applied for a Major Maintenance Capital Improvement Project
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grant through the Alaska Department of Education & Early Development.
In 2012 the application was the #33 ranked project and was not funded.
The 2013 rankings will be released toward the end of November 2013.
o Estimated annual heating fuel savings
If funded, approximately $5,400.00
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.
N/A
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
The Nenana Collaborative Biomass Heating System Project will have a multifaceted, positive
impact on the economy and people of Nenana and the surrounding area. The reduced cost of
energy will directly benefit the Nenana community by facilitating the transfer of funds that are
currently dedicated to the production of building heat, to the supplementing of city services and
educational programs at both the school and the Nenana Native Council Day Care building
where educational programming from birth through Head Start is available to all families in
Nenana and the surrounding area. The City of Nenana plans to utilize funds saved through the
use of biomass fuel to improve city services and infrastructure. Every child and every family that
has a child or children involved in the community’s educational programs, from birth to high
school graduation, will receive the benefit of more program funding and less money spent on
heat.
In the long term, the Nenana Collaborative Biomass Heating System Project will increase the
demand for local source energy to stimulate employment. In the near term, the construction of
the project will have a significant impact on the local economy by providing an estimated fifty
local jobs for the six month construction phase. The City of Nenana estimates that 35% of
wages will circulate and re-circulate through the local Nenana economy providing benefit to
local businesses.
The project will also have an economic benefit in the development of the agricultural land west
of Nenana. Once purchased, the land will need to be cleared of trees in order to be prepared for
agriculture. A Nenana biomass boiler will allow the trees on the agricultural land to be the first
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crop instead of the first expense for the developers who purchase the land. This will spur the
purchase and development of the land and help to strengthen and diversify the local economy.
Lastly, prudent forestry management has an economic benefit at the local, state, and federal
level. A biomass boiler in Nenana will give a market to Toghotthele Corporation and the State of
Alaska for trees that can be thinned as part of purposeful forestry management. Over the last
several years, the Nenana area has experienced two large wild fires and countless smaller wild
fires that damaged property and cost the State and Federal governments millions of dollars to
manage, contain, and put out. Proper forestry management will create fire breaks that will
significantly reduce the severity of wild fires and save fire management costs and property loss.
Potential annual fuel displacement (gallons and dollars) over the lifetime of the
evaluated renewable energy project:
The proposed installation of a wood-fired heating system in Nenana will displace a projected
minimum of 83,100 gallons of fuel oil annually with an annual net cost savings of $167,579.
The total amount of fuel oil displaced over a 20 year period is estimated to be 1,662,000
gallons. In 30 years, 2,493,000 gallons of fuel oil will be displaced. Over a 20 year period,
the total avoided costs are estimated to be $4,451,092, with a Benefit Cost (B/C) Ratio of
1.37. Over 30 years, the total avoided costs are $7,779,417, with a Benefit Cost (B/C) Ratio
of 2.39. In the project’s 14th year of operation, it is expected that the cumulative cost savings
will exceed the total cost of the design and construction of the project. (See the Appendix B
Update to Final Report.)
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate): The anticipated annual revenue is calculated by
subtracting the annual cost of operating the plant from the annual avoided cost of using
wood chips instead of fuel oil to obtain the annual cost savings or anticipated revenue. In the
first year, as stated above, the net cost savings is estimated to be $167,579. Based on 2012
Final Report, the Table under 4.4.3 “Cost Benefit Ratio and Other Supporting Data” gives
full detail over 30 years.
Potential additional annual incentives (i.e. tax credits):
None
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available):
None
Discuss the non-economic public benefits to Alaskans over the lifetime of the project:
First and foremost, the Nenana Collaborative Biomass Heating System Project believes that
this project, a collaborative effort among three entities within the Nenana community, will be
of public benefit over the lifetime of the project in that it will serve as a successful model for
other communities, particularly those in rural, remote areas where collaboration will be
necessary to develop feasible projects. Previously funded projects researched by local
Nenana stakeholders were biomass projects granted to and built for single entities, even
though other public facilities were nearby. The Nenana project planners were not able to find
an existing collaborative effort such as the one proposed in this application. Therefore, a
public benefit of this project will be a model of successful integration in an effort that will
maximize the efficiency of centralized boiler systems for communities. This model of
collaboration will be able to be duplicated, modified, and tailored to meet the individual and
diverse biomass heating needs of any rural, remote community that desires and has public
entities that are willing to cooperate and work closely together.
Another non-economic public benefit to Alaskans over the lifetime of the project will be in
education. As evidenced by the letters written by Sherri Carattini, Nenana K – 12 Principal,
Jens Jacobsen, Math Teacher and Project Director for the Nenana STEM Initiative grant,
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Derek Ketzlern Nenana High School Student Council President, and the six students who
comprise the Nenana Student Living Center Leadership Team, this project will provide a
real-life, relevant, project-based learning environment for our students. Nenana’s emphasis
of developing STEM education (Science, Technology, Engineering, and Math) to prepare
students for the 21st Century workforce needs relevant, project-based learning through doing
environments to develop the necessary skills. Current biomass training and workshop
agendas are designed by, lead by, and attended by adults. At some point in the future, the
educational staff of the Nenana City Public School envisions a biomass conference in
Nenana, for youth and adults, with the principle presenters being Nenana students.
Educational experts know that the best way to deepen a student’s learning is to have them
teach someone else.
Another educational benefit to Alaskans over the lifetime of the project is the presence of the
Nenana Student Living Center and its connection to the biomass boiler system. As stated
earlier, high school students come to Nenana from villages all over Alaska. This year’s
student body, as in every year, over 40 different villages are represented at the center. On
their letter, the Leadership Team students all listed their villages beside their signatures.
Many of the villages represented by students at the Living Center have schools and other
public entities that are struggling much the same as we are, and some paying even higher
costs for fuel oil and electricity. Students at the Living Center want to get a good education
and return home to make a difference in their local communities. Nenana’s STEM education
will allow students who are interested to return home with the educational tools and
knowledge necessary to help their community decrease their dependence on fuel oil through
biomass or other relevant and appropriate technologies for their particular village or region.
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
Proposed business structure(s) and concepts that may be considered:
Presently, the Nenana City School District is considering managing the business side of
the proposed project through an Enterprise Fund on the Nenana City School District
books. The project anticipates full cost recovery via Btu delivered rates as metered at
each individual building site. Such a system will provide accurate data for reporting
purposes and encourage the operations staff of each building to maintain the highest
degree of efficiency possible. In addition to full cost recovery, the project is also
considering a Sinking Fund (Depreciation) account of an estimated 3 – 5% that will be
saved and utilized to handle any major maintenance or significant repairs or renovations
required for safe and peak efficiency.
Since the project application proposes a shared facility, management and decision-
making processes for the facility will need to be managed by an advisory governing board.
This governing body will be comprised of members appointed by each of the collaborative
partners in as close of a ratio as possible to the anticipated usage at the onset of the
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project and revised, as necessary to mirror actual usage in the years to come. More detail
will be provided as the final project business plan is developed. It is anticipated that this
body will have the final say on delivered rates and the percent saved in the sinking fund.
How you propose to finance the maintenance and operations for the life of the
project:
The maintenance and operations of the plant and piping infrastructure, for the life of the
project, will be financed through the use of the avoided costs retained by the use of the
wood chip biomass fuel as compared to the cost of fuel oil (See the spreadsheet under
4.4.2 Project Operating and Maintenance Costs). In summary, the cost of 93,100 gallons
of fuel oil at $3.60/gal. is $335,160. Since the biomass boiler is expected to replace 85%
of the fuel oil purchased by the project partners, it will give the project an estimated
$284,886 in avoided costs. The project application proposes an estimated operating cost
of $140,858, which is well below the anticipated avoided costs, and which are already a
part of each entity’s annual budget. This maintenance and operational cost financing plan
will allow for proper plant operations and upkeep and give each entity some welcome
budget relief or the capacity to reallocate funds from fuel oil purchasing to desired
programs or services.
Identification of operational issues that could arise:
The project partners, the Nenana City School District and the City of Nenana in particular,
have experienced, long-tenured employees in the area of facility maintenance. There is
also a demonstrated commitment to complete and proper training in all building systems
operated by the partners. As such, the project partners believe that any potential
operational issues will be resolved in a safe, expeditious, and proper manner. It can be
expected that all operations and maintenance personnel employed by the collaborative
partners will receive training in the operations and maintenance of the biomass plant and
the piping infrastructure. By training all personnel, the project partners believe that
Nenana will have sustained expertise so that this system can be properly maintained
throughout its lifespan. The Nenana City School District also has a computerized
preventive maintenance program that automatically creates and tracks work orders that
will help the operations and maintenance staff maintain the boiler and piping infrastructure
according to specifications, with the capacity to document and report all preventive
maintenance inspections and any work required as a result. At present, no specific
operational issues are anticipated. However, should an operational issue arise, the
existing expertise, the training each maintenance person will receive, and the systems in
place to create, document, and report work orders is expected to resolve any issues in a
timely and appropriate manner.
A description of operational costs including on-going support for any back-up or
existing systems that may be required to continue operation:
A complete, itemized description of the estimated Project Operating and Maintenance
Costs is located in a spreadsheet under section 4.4.2 of this application. The budget for
the operational costs estimate includes the purchase of wood chips @ $75/ton ($77,798),
Other parts and materials ($10,000), Inspections and contracted repairs ($7,500), Utilities
– electric power ($15,000), Insurance ($4,000), Maintenance personnel wages and
benefits (¼ FTE - $17,252), Direct administrative hours ($2,600), and Indirect
administrative hours ($6,708), for an estimated annual operating cost of $140,858. The ¼
FTE personnel will be provided by the Nenana City School District from the reduced hours
required to maintain the current fuel oil boiler systems at the various school buildings.
All existing fuel oil boilers will remain operational and utilized to fulfill the 15% need that
the biomass heating system will not provide and provide building heat in the event the
biomass boiler is unable to perform due to maintenance or repair. Since these systems
will only be utilized to meet the heating needs in extreme cold weather situations or when
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the biomass boiler is off-line for maintenance or repair, the amount of maintenance time
necessary to maintain each boiler will be significantly reduced. Each collaborative partner
is confident that these back-up systems will be able to be maintained routinely and
properly with the existing personnel that each partner employs.
Commitment to reporting the savings and benefits:
As the collaborative partner responsible for the fiduciary aspects of the project, the
Nenana City School District has the capacity and a history of commitment to the proper
and required reporting of all grants received, from both State and Federal sources. The
following two spreadsheets, “Schedule of State Financial Assistance” and the “Schedule
of Expenditures of Federal Awards” is indicative of the capacity of the Nenana City School
District to manage and support the reporting on the Nenana Biomass Heating System
Project grant award for years to come. As a school district, finances are audited annually,
with records demonstrating compliance and sound business and professional practices
and safeguards.
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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.
For many years, stakeholders throughout Nenana have been talking about, learning about, and
studying alternative energy for the community. Over the past two year, that focus has turned to
biomass, in large part due to its availability in the area, its potential as an economic driver for
employment and reduced heating costs, and the need for forestry management to assist in the
mitigation of area wild fires. The City of Nenana, the Nenana City School District, and the
Nenana Native Council have prepared for this award through the establishment of long-term,
collaborative work in many areas, particularly education (early childhood through high school
graduation).
Nenana has stable leadership. Jason Mayrand has been the Mayor of Nenana since 2001. Eric
Gebhart became Superintendent of Schools in 2008 and Carl Horn has been the school district’s
Director of Finance since 2002. The community of Nenana has had a state-wide vision of service
and leadership throughout its rich history. In the early 1900’s, in cooperation with the Nenana
Native Council, St. Mark’s Episcopal Mission School educated children from all throughout
Alaska’s Interior. In the present, the Nenana Student Living Center houses up to 88 high school
students per year, who are educated at Nenana High School. This year, students from over 40
different villages across the State have come for the educational opportunities offered in
Nenana. The Nenana City School District also has a state-wide correspondence program,
CyberLynx, where about 700 more students receive their K – 12 educational foundation. The two
financial schedules in the section above demonstrate the management and fiduciary capacity
and preparation of the Nenana City School District for leadership in a community collaborative
endeavor such as this application presents. Since Mr. Gebhart has been Superintendent, the
school district has also successfully completed two major maintenance projects that significantly
upgraded conditions at the school. The Nenana Fire Sprinkler Installation, with a project budget
of $573,338 and the HVAC Controls (building-wide), Gymnasium Lighting, and Bleacher Project
with a budget of $733,936 were completed simultaneously during the summer of 2009. The
school is currently managing a third approved major maintenance project with a project budget of
$951,353 to replace a failing ADA structure and correct other exterior problems. The school
district’s most current Capital Improvement Project application to the Alaska Department of
Education and Early Development, submitted August 30, 2013 makes a capital request of
$3,674,171 for energy efficiency upgrades (new exterior doors, garage doors, and windows),
new floor coverings, building safety related work. These successful efforts demonstrate that the
district’s administrative and maintenance staff has the capacity to be fully devoted to the
establishment and successful completion of the Nenana Collaborative Biomass Heating System
Project.
The City of Nenana completed significant work in preparation for the building of a bridge across
the Nenana River at 10th Street and then secured planning and right of ways for a road that will
access the agricultural land west of Nenana that has been referred to elsewhere in this
application. During the 2012 Legislative Session, Mayor Jason Mayrand was able to have the
funding necessary for the city to construct the bridge and the road included in the bond package
that was voted on and passed in November 2012. Therefore, the City of Nenana has begun the
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planning and design, and when complete, will be able to begin construction of the bridge and
road leading to access of the 178,000 acres of currently forested agricultural land.
Specifically, in preparation for an actual biomass project in Nenana, the Pre-Feasibility
Assessment for Integration of Wood-Fired Heating Systems Final Report (July 24, 2012) was
funded by the Alaska Energy Authority and the U.S. Forest Service for Toghotthele Corporation,
the Nenana City School District, and the City of Nenana. This assessment demonstrates and the
project is economically feasible. The wide-spread interest in a community biomass project
demonstrates the readiness of the community to support it.
It is the intention of the Nenana Collaborative Biomass Heating System Project partners to
pursue this project to its completion. It is the number one collaborative capital priority of the
School District, the City and the Native Council. The timetable that has been set is aggressive,
but the project partners and the community of Nenana, believe they are up to the task.
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.
Included with this application are Resolutions of support passed by the Nenana City School
District, the City of Nenana, and the Nenana Native Council. Each of these three entities has
been involved in hosting wood biomass informational meetings since early 2011. A wood
biomass heating system for the Nenana community has been an agenda item on each entities
individual meeting agendas on several occasions since then. The City of Nenana hosts a joint
public meeting with the Nenana City School District and the Nenana Native Council twice each
year. Utilization of biomass in Nenana has been a joint meeting agenda topic for two years.
During both individual and joint meetings, extensive public support has been given to the
concept of a Nenana biomass project. There have also been four additional general public
meetings and several smaller working group meetings with significant community participation.
At the last joint meeting, held August 2, 2012, when the Nenana Collaborative Biomass Heating
System information was presented and discussed, public support was expressed for this
proposed application and no opposition to the project was evident. Energy in Nenana, biomass
in particular, has also been a supported topic of discussion during local Nenana Community
Planning meetings sponsored by the Tanana Chiefs Conference and at the local Nenana
Wellness Coalition meetings where many community stakeholders gather to discuss, sponsor,
and implement ways to improve the life, health, and wellness of Nenana area residents.
Jim Sackett, the CEO of Toghotthele Corporation, the Alaska Native Village Corporation for
Nenana, has been involved in the investigation of biomass as an alternative fuel source for
Nenana and the development of this project from its beginnings. A letter from Mr. Sackett is
included in the “Attachments” section of this application. There are also several additional letters
from members of the Nenana community and the surrounding area lending their reasoned
support for the Nenana Collaborative Biomass System Heating Project. These letters, found in
the “Attachments” section, are from Annalee Coy, a teacher and life-time local resident, Kat
McElroy, Leon McElroy, and David Poppe of Nenana Urban Farm, Kathie Shaw, a long-time
local resident and manager of a local business, and Paul Verhagen, a local contractor. The
students of the Nenana City Public School are excited about the economic and educational
aspects of the program, as evidenced by the letter from the Nenana High School Student
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Grant Application - Heat Projects
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Council and the Nenana Student Leadership Team mentioned earlier The students and teachers
look forward to the relevant hands-on learning opportunities that planning, construction, and
operation will avail them, directly across the street.
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.
Provide a narrative summary regarding funding sources and your financial commitment to the
project
The Nenana Collaborative Biomass Heating System Project is requesting $367,965.00 from the
Alaska Energy Authority for the purpose of project design development and permitting for a
central biomass boiler to serve the community of Nenana through a collaborative effort that has
been described throughout this application. In addition to the funds requested from the Alaska
Energy Authority, each of the local partners (The Nenana City School District, the City of
Nenana, and the Nenana Native Council) will provide an in-kind match to support the design
development, permitting, construction, and commissioning phases of the project. The in-kind
match of $25,800 will cover collaborative work related to project design development and
engineering, permitting, preparation of project bid documents, advertising for bids, selection of a
construction contractor, handling of funds, and required reporting. This “in-kind” match will be
funded through the General Fund Budget of the Nenana City School District for the service
hours provided by Eric Gebhart and Carl Horn, and the City of Nenana General Fund Budget for
the services of Mayor, Jason Mayrand. Additional design and permitting related in-kind hours
will be contributed during the construction phase of the project, along with significant in-kind
matching dedicated to actual project construction. In addition to the personnel mentioned above,
the construction phase of the project will designate General Fund Budget hours from the
respective Maintenance Departments of both the Nenana City School District and the City of
Nenana. These hours, along with land (from the City of Nenana), material, labor, equipment,
power, and related matching contributions (from both the school district and the city), will be
determined during the Final Design & Permitting Phase and specifically designated in the
Collaborative’s Construction Funding application.
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3.15 of the
Request for Applications.
This application is for Final Design and Permitting and does not include funding for Construction
and Commissioning. Detailed descriptions of Project operations and maintenance activities and
issues, along with detailed descriptions of Project performance, including energy output,
estimated fuel savings, and any other relevant measures of Project performance as outlined in
Section 3.15 “Performance/Operation and Maintenance (O&M) Reporting” will be determined
during the proposed Final Design and Permitting phase and included when the Project submits
a Construction and Commissioning grant application.
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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.
Funding Source: Alaska Energy Authority – $367,965
These funds are for the design development, permitting, and construction supervision of the
Nenana Collaborative Biomass Heating System Project. These funds are for the professional
design and engineering services needed to design, develop, build, and commission a boiler
facility and piping infrastructure in Nenana. The project does not anticipate needing additional
design and permitting funds when an application is made for construction funding.
Funding Source: Nenana City School District and the City of Nenana - $25,800
These funds are in-kind and intended to meet the financial requirements of the project and to
assist the design and engineer professionals in their design development and permitting work
until final design documents are complete. Additional design and permitting related in-kind hours
will be contributed during the construction phase of the project, along with significant in-kind
matching dedicated to actual project construction. These hours, along with land, material, labor,
equipment, power, and related matching contributions, will be designated in the in-kind match of
Construction Funding application. A breakdown of the in-kind contribution to this specific
application is below:
City Mayor: 240 hours = $13,200 (salary & benefits)
School Superintendent: 120 hours = $7,800 (salary & benefits)
School Business Manager: 80 hours = $4,800 (salary & benefits)
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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. )
Design & Permitting
Application
TBD, based
on when
construction
funding
becomes
available
$367,965 $25,800 $393,765
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $367,965 $25,800 $393,765
Budget Categories:
Direct Labor & Benefits $ $25,800 $25,800
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $367,965 $ $367,965
Construction Services $ $ $
Other $ $ $
TOTALS $367,965 $25,800 $393,765
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Nenana City School District
Regular Election is held: Annually in October
Date: October 1, 2013
Authorized Grant Signer(s):
Printed Name Title Term Signature
Eric Gebhart Superintendent N/A Eric Gebhart
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/m unicipal official)
Printed Name Title Term Signature
Marilyn Duggar School Board
President
10/12-10/15 Marilyn Duggar
Grantee Contact Information:
Mailing Address: PO Box 10
Nenana, AK 99760
Phone Number:
(907) 832-5474
Fax Number:
(907) 832-5625
E-mail Address:
supt@nenanalynx.org
Federal Tax ID #:
92-6000107
Please submit an updated form whenever there is a change to the above information.
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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 Eric Gebhart
Signature Eric Gebhart
Title Superintendent
Date September 20, 2013