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HomeMy WebLinkAboutAEA Grant Application Round 6Renewable Energy Fund Round 6 ®AS Grant Application �GENT-DENERGY AUTHORITY SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Haines Borough Type of Entity: Fiscal Year End: Government Entity June 30 Tax ID # 47-0888706 Tax Status: _For- rofit or tenon -profit check one Mailing Address Physical Address P.O. Box 1209 Haines, AK 99827 103 Third Avenue, Haines AK 99827 Telephone Fax Email 907-766-2231 x 907-766.2716 mearnest@haines.ak.us 29 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Darsie Cutback Assistant to the Manager Mailing Address P.O. Box 1209 Haines, AK 99827 Telephone Fax Email 907-766.2231 x 60 907-766-2716 dculbeck@haines.ak.us 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 X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. AEA13-006 Grant Application Page 2 of 24 7/3//2012 Renewable Energy Fund Round 6 �^AQ Grant Application ENERGY AUTHORITY SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. Project Title — Haines Borough Pellet Heating Project 2.1 Project Location — The project location is Haines, Alaska. 2.2.1 Location of Project — Latitude and longitude, street address, or community name. Haines Borough is situated at N 59.233800 W and 135.447009, 103 Third Avenue, PO Box 1209, Haines, AK 99827 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Haines Borough. The estimated population of the Haines Borough in 2011 was 2,620. Haines population has been steadily increasing since 1970, when the population was 1,504. This trend is expected to continue in the foreseeable future. 2.2 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction I Construction Reconnaissance X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.3 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. Project funds will be used to design, purchase and install six wood pellet boilers and storage silos at the following Borough -owned buildings: sewage treatment plant, human resources / pre- school building, Haines Borough School District vocational education building (also referred to in this application as voc-tec building), swimming pool, Borough administrative offices, and visitor center. AEA13-006 Grant Application Page 3 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application �4==ENERGY Y 2.4 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) This project will significantly reduce the community's reliance on non-renewable fossil fuels. It will significantly reduce heating costs, improve air quality, reduce carbon output, and lead to greater energy independence and security. This project can serve as a model for other public and private buildings in Haines, as well as other communities looking to reduce energy costs and enhance air quality. Reduced heating costs in public facilities will allow reallocation of limited public funds toward education, public safety, and maintenance of basic municipal infrastructure. Other long term savings include decreasing the risk of possible future fuel oil spill and storage tank leak contamination cleanup costs associated with continued reliance on oil heating systems. 2.5 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. Project Budget: System design and bid documents: $40,000 Purchase six boilers and storage silos, including shipping: $240.000 Installation of boilers and silos: $222,000 Project management and grant administration: $15,000 Total project cost: $517,000 Anticipated sources of funds: AEA REF: $472,000 Borough cash and in -kind: $45,000 The Boroughs in -kind contributions include Public Facilities staff wages and benefits for installation assistance and construction of storage silos, Public Facilities Director and Department of Administration salary and benefits for overseeing project, development of RFP's, etc. Building materials will also be itemized and contributed to the project. The Boroughs cash contribution will come in the form of existing appropriations for boiler systems and facility major maintenance and advanced engineering CIP and/or other grant funds. AEA13-006 Grant Application Page 4 of 24 7/3//2012 Renewable Energy Fund Round 6 mc3 AQ_t�'`_,A z Grant Application E�ENERGY AUTHORITY 2.6 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. $472,000 2.7.2 Cash match to be provided $30,000 2.7.3 In -kind match to be provided $15,000 2.7.4 Other grant applications not yet approved $0 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $517,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet $617,000 including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $2.7M to $4.51111 over 25 years depending on fossil fuel inflation rates. We used a low of 6% and high of 8% 2.7.8 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 your application (Section 5.) AEA13-006 Grant Application Page 5 of 24 7/3//2012 Renewable Energy Fund Round 6 0� �g�Q Grant Application 4EW:::) ENERGY AUTHORITY 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). 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. Darsie Culbeck will be the project manager. He can be contacted at dculbeckla.haines.ak.us or 907-766-2231 Resume attached. References: Mark Earnest, Borough Manager. Carlos Jimenez, Acting Public Facilities Director. Mr. Earnest can be reached at 907-766-2231. Mr. Jimenez can be reached at 907-766-2257. 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 RFP for design consulting services Prepare and advertise RFP for design services 07/01/13 08/01/13 Select project design consultant Evaluate proposals, finalize design scope and fees, award contract and issue NTP 08/01/13 10/01/13 Design project Review 35% and 95% design levels; approve final design and bid documents 10/01/13 12/01/13 RFP/IFB for contract construction services RFP/IFB for purchase and installation of pellet boilers and storage silos 12/01/13 01/01/14 Select contractor Evaluate proposals/bids, finalize design scope and fees (if necessary), award contract and issue NTP 01/01/14 02/01/14 Install boiler systems Install boiler systems and controls; train local operators 02/01/14 07/01/14 AEA13-006 Grant Application Page 6 of 24 7/31/2012 Renewable Energy Fund Round 6 GOID Grant Application ®40MEDENERGYAUTHOR 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Okofen or similar boilers will be supplied by Maine Energy Systems (http://www.maineenergysystems.como or another manufacturer. Project accounting will be overseen by the Borough Finance Director, Jila Stuart. The project grant manager is Darsie Culbeck, assistant to the manager, with assistance from Carlos Jimenez, acting Public Facilities Director. The project grant administrator is Darsie Culbeck, with assistance from Jila Stuart. Project RFPs, bids, and contracts will be administered by Julie Cozzi, Borough Clerk. Boiler installation assistance and maintenance will be performed by Ed Bryant and Andus Hale, Public Works staff. Mark Earnest, Borough Manager, has overall responsibility for the grant and the project. It is likely that Schmolck Mechanical Engineers (http://www.schmoickmechanical.com� will be involved as they will have installed the OkoFen boiler in the Borough Senior Center. Haines Borough Code 3.60 outlines the procurement process: See attached "Haines Borough Procurement Code" 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. The Project Manager will provide regular status updates to AEA staff via e-mail. An alternate contact is Mark Earnest 907-766-2231 3.5 Project Risk Discuss potential problems and how you would address them. One of the challenges of installing new technology in rural Alaska is the availability of parts and skilled labor. The Haines Borough will keep a full supply of parts on hand to ensure timely repair. The Haines Borough will also require boiler suppliers to train Borough staff on operations and maintenance of the systems. Another challenge is ensuring a regular pellet fuel supply. The Haines Borough will strive to store a six month supply of pellets at all times. This will be accomplished by purchasing bulk pellets and storing them in three shipping containers. AEA13-006 Grant Application Page 7 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application �� WEED ENERGY AUTHORITY v� 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 Haines Borough has been working with Nathan Soboleff at Sealaska Corporation regarding pellet supply. They have committed to supplying the Haines Borough with premium grade pellets These pellets will cost $350 per ton delivered in Haines. We have also had discussions with Chilkoot Indian Association who is considering building a pellet plant in Haines. If this happens, we would likely purchase directly from them. Of note, Sealaska in currently exploring new supply chains and estimates that prices could drop significantly in the coming months. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. All of the following building use oil fired boilers; most are nearing the end of their service lives. The Swimming Pool uses about 17,500 gallons of heating fuel annually The Borough Administrative office uses about 990 gallons of heating fuel annually The Vocational Technical Building uses about 1700 gallons of heating fuel annually The Visitor Center uses about 1300 gallons of heating fuel annually The Sewage Treatment Plant uses about 7600 gallons of heating fuel annually The Human Resources Building uses about 1700 gallons of heating fuel annually AEA 13-006 Application Page 8 of 24 7/3/2011 Renewable Energy Fund Round 6 idolD Grant Application ® ENERGY AUTHORITY 4.2.2 Existing 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. Heating oil is supplied by Delta Western, the sole provider of fuel in Haines. If the Haines Borough removed over 30,000 gallons from the supplier it could cause the loss of one full time office staff. This is according to Fred Gray of Delta Western who says that they are on the edge of letting someone go and this action might be the final straw. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Currently most people in Haines use heating oil or wood for their heating. Some people supplement with electric heat. It is difficult to know the impact that removal of about 31,000 gallons of fuel oil sales will have on the single local heating fuel oil supplier based mainly on the fact that the supplier. However, this fuel switch on the part of the Borough is not expected to immediately influence the cost of heating fuel to others, though should the example of the municipality encourage others to switch as hoped, the market may be affected. Fuel switching by the municipality may have great impact on people examining the utilization of wood pellet heat. The Borough is currently installing a wood pellet boiler in one of its buildings to act as a practical case study. The Haines Borough School Power Systems high school class will be using this installation as a class project and will monitor costs, efficiencies, and other data to help quantify results. The results, if successful, will demonstrate to both Haines residents and others in Southeast Alaska that the wood pellet boiler technology is viable and offers tremendous potential life cycle cost savings, greater efficiencies, enhances air quality and reduced threat of contamination of the environment, and that they are an appropriate technology for small, rural communities with exceptionally high energy costs. This will also spur more interest in renewable energy sources in general. The other impact will be an increased demand for pellets and that should help other consumers and new suppliers enter the market. We hope to spur economic development in Haines directly by providing a ready market for locally developed wood pellets. Jobs will be created, possibly balancing any job loss that may occur if there is a significant decline in fuel oil sales. AEA13-006 Grant Application Page 9 of 24 7/3//2012 Renewable Energy Fund Round 6 4NED Grant Application ®dIIIIIIIIIIIEDENERGY AUTHORITY 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, 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 We are proposing to install high efficiency Okofen or similar pellet boilers. In small buildings one boiler will be sufficient while larger buildings will require multiple boilers in sequence. We will address redundancy by plumbing the systems for the option of plugging in a mobile oil boiler if the main boiler is not operable. This is similar to a system used by the Coast Guard. If all boilers are installed we will displaced an estimated 31,000 gallons of heating fuel with 263 tons of pellets annually. These pellets will be supplied by Sea Alaska corporation in bulk super sacks. The Haines Borough will fill silos using a gasoline powered portable blower. The Haines Borough will store approximately 130 tons of pellets in four shipping containers as a reserve against any disruption of supply. 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 and access issues. The Haines Borough owns all the land and buildings in question and anticipates no issues with land ownership. 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 No permits are needed for this project. 4.3.4 Environmental Address whether the following environmental and land use issues apply,and if so how they will AEA13-006 Grant Application Page 10 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application 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 No environmental issues are expected. The Haines Borough will give consideration to the visual, and aesthetics aspects. 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 s 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.) The Haines Borough estimates a 30% increase in maintenance cost using pellet boilers verses the current system. This 30% will be paid for with Haines Borough general funds. We estimate the directly labor costs for maintenance of the boilers in the 6 buildings affected by this grant is roughly $8000 annually. The new system will add $2400 in maintenance costs. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential powerpurchase/sales price - at a minimum indicate a price range AEA13-006 Grant Application Page 11 of 24 7/31/2012 Renewable Energy Fund Round 6 ®fig Grant Application �405--)ENERGY AUTHORITY • Proposed rate of return from grant -funded project The applicant is the power purchaser. 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 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Sealaska Corporation has guaranteed to supply the Haines Borough with pellets. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other Swimming Pool (SP): 3 boilers, Visitor Center (VC) 1 boiler, Borough Administration (BA) 1, Human Resources (HR) 1, Voc-Tech (VT) 1, Sewer Treatment (ST)1 ii. Rated capacity of generators/boilers/other (SP): 2.3M BTU (shared with school, (VC) 118K BTU, (BA) unknown, (HR) 200K BTU, (VT) 219K BTU, (ST) 87K iii. Generator/boilers/other type (SP): Weil McLain Model 788, (VC) Slant Fin 78- 105 (BA) The Ultimate, (HR) Barnham, (VT) Hydro Therm, (ST) Jackson Church iv. Age of generators/boilers/other (SP): 2007, (VC) 1981 (BA) 1983, (HR) older but unknown, (VT) 1974 (ST) 1993 v. Efficiency of generators/boilers/other (SP): Est 80%, (VC) Est 75% (BA) Est 75%,(HR) est 75%, (VT) Est 75% (ST) Est 80% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Estimated 30% higher than current ii. Annual O&M cost for non -labor Estimated 30% higher than current. c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] (SP): 17,500 gallons, (VC) 1300 gallons, (BA) 990 gallons, (HR) 1700 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 12 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application gallons, (VT) 1655 gallons, Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends �® ENERGY AUTHORITY d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] (SP): 17,5000 gallons, (VC) 1300 gallons, (BA) 990 gallons, (HR) 1700 gallons, (VT) 1655 gallons, (ST) 7600 ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Pellets (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] (SP)2.4B BTU, (VC) 182M BTU, (BA) 138M BTU, (HR) 238M BTU, (VT) 231 M BTU, (ST) 1.06B BTU c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] (SP): 148 tons pellets, (VC) 11 tons, (BA) 8.39 tons, (HR) 14.4 tons pellets (VT) 14 tons, (ST) 64.4 tons iv. Other Project Cost a) Total capital cost of new system (SP) 260,084$ (VC) $39029, (BA)$39029,(HR)$50729, (VT)$50729 (ST)$130037 b) Development cost (SP) AEA13-006 Grant Application Page 13 of 24 7/3//2012 Renewable Energy Fund Round 6 ®�&g��_ Grant Application ®r�ENERGYAUTHORITY c) Annual O&M cost of new system (SP)$6000, (VC)$1000, (BA), $1000, (HR) $1000 (VT) $1000, (ST) $3000 d) Annual fuel cost New System (SP)$51,905 (VC) $ 3855, (BA) $2936, (HR) $5042 (VT) $4908, (ST) $22,542 Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat Annual amount of fuel displaced in gallons for each facility: (SP) 17,50( (VC) 1300, (BA) 990, (HR) 1700, (VT) 1655 (ST) 7600. Total 25-year savings: $3,709,063 (see attached pellet boiler system spreadsheet for detail). iii. Transportation b) Current price of displaced fuel $4.39 c) Other economic benefits Reduction of fuel spill liability. Local and regional job creation in the manufacturing and delivery of pellets. Possible future Carbon credits for reduction of Carbol emission. d) Alaska public benefits Better air quality, reduction of green house gases, creation of sustainable energy supply using renewabl sources. Haines will prove pellet technology and be a model for other communities needing to switch from fossil fuels to a less expensive renewable energy source. Power Purchase/Sales Price a) Price for power purchase/sale Pellets are currently $350 per ton delivered to Haines. This equates to just under $3.00 per gallon heating fuel. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 6.5:1 (Please see attached NVP Calculations for each building and Pellet Boiler System Costs and Life Cycle (25-yr) Savings spreadsheet.) Payback (years) Various (Please see attached NVP Calculations for each building and Pellet Boiler System Costs and Life Cycle (25-yr) Savings AEA13-006 Grant Application Page 14 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application © ENERGY AUTHORITY 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) • What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). Pellets • Efficiency of the biomass technology. 94.7% • Thermal or electric application. Thermal • Boiler efficiency. Okofen Pellet boilers have an efficiency rating of 94.7% • Displaced fuel type and amount. 31,000 gallons in total number 1 heating fuel Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. 263 tons per year with an estimated moisture content of less than 8% • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. N/A • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? The Haines Borough owns the land and has no restrictions or limitations on its use. Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Pellets are sourced from Washington State and delivered by Sealaska of Juneau. Sealaska has verbally committed to one year guaranteed price. There is no anticipated shortage of pellet supply. In addition, the Chilkoot Indian Association in Haines is applying for funds to construct a pellet plant in Haines. If this happens, no shortage of wood biomass is anticipated. The feasibility study for this plant identifies plentiful biomass supplies in both the Haines State Forest and the Yukon Territory. Sealaska is also looking into bring pellets from Prince Rupert BC which has a large supply of pellets and could significantly reduce costs for all users. AEA13-006 Grant Application Page 15 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application ' 44 TLAW -AMIRN: 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 • Anticipated annual revenue (based on i.e. a Proposed Power 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 We expect to displace 31,000 gallons of heating fuel annually. Assuming a lifecycle of 25 years we will displace 775,000 gallons of heating oil with this project. At the current price of $4.39 for heating oil and $350 per ton pellets. This is over $50,000 in savings in year one on fuel. Each of the projects has specific numbers and ratios. However, in total there will be a 25 year life cycle savings to the Haines Borough of over $3.7M. The non economic public benefits include cleaner air and a 92% percent reduction in carbon emissions verses burning the 31,000 gallons of heating oil. An added non economic benefit will be the feeling of energy security gained by knowing that the Haines Borough is using regional renewable energy that is less volatile than fossil fuels. There is also an educational benefit with the integration of the high school students performing systems analysis on our first wood pellet system. This is an excellent educational tool and will prepare our students for the energy systems of the future. Burning pellets instead of diesel will also lead to improved air quality and associated health of local residents. 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 AEA13-006 Grant Application Page 16 of 24 7/31/2012 Renewable Energy Fund Round 6 ®� Grant Application �40MEDENERGYAUTHOWY This system will be maintained and operated by the Haines Borough Public Works maintenance staff. The Haines Borough will fund these costs out of general fund revenue from property and sales tax receipts and other sources of municipal revenue. Operational issues will most likely arise during the initial set up. We are planning on installation during the summer to take advantage of warmer temperatures and the opportunity to completely shut systems down if needed during this period. All O&M costs will be will be the responsibility of Haines Borough general fund revenues. No AEA funds will be used for this purpose SECTION 7 — READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The Haines Borough will be installing an OkoFen pellet boiler and storage silo at the Senior Center in mid -October. This experience will be helpful in acquiring local knowledge with installation of this particular heating technology and system. We are also bringing a technician from Okofen to Haines to train Borough maintenance staff, and we are working closely with Schmolck Mechanical Engineers for the design and installation work related to this project. This experience will be very helpful for future installation and operation of future pellet boilers in other Borough facilities. The Borough is also working with Sealaska and other potential pellet suppliers to provide a secure, long-term supply of pellets. If awarded, the Borough expects to complete installation of the pellet boilers within 12 months. The Borough has been previously awarded AEA grants, including a wood energy feasibility study and hydro reconnaissance study. SECTION 8— LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The Haines Borough Assembly voted unanimously to support the application for this grant. A resolution is attached. The Haines Borough Public Facilities Director is a strong supporter of moving to pellet heat. A letter is attached. The Haines Peak Oil Task Force had the following recommendations: RECOMMENDATION 2: The Haines Borough will lead the community in the overall reduction of fossil fuel use to decrease dependence on oil, save money, lower greenhouse gas emissions, and reduce the export of wealth from the community. Action 7, Recommendation 2, Example 2: Require the Borough government as a whole to meet vehicle and heating fuel reduction targets of 4% annually or an overall reduction AtAid-UM Urant Application Page 17 of 24 7/3//2012 Renewable Energy Fund Round 6 Grant Application of 30% by the year 2015 relative to FY 200727. SECTION 9 — GRANT BUDGET of the Borough's vehicle and fuel use Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. The Haines borough has completed 2 studies specifically on wood heat at a cost of roughly $100,000. These studies were funded by $10,000 from Juneau Economic Development, $80,000 from AEA and a $10,000 Match from the Haines Borough. The Haines Borough also funded the Energy and Sustainability Commission which studied wood biomass systems. The Haines Borough also funded the Peak Oil Task Force. AEA13-006 Grant Application Page 18 of 24 7/3//2012 Renewable Energy Fund Round 6 ') f, � AKA: Grant Application 6/ 0=- )ENERGYAUTHORITY Applications should include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitting, and Construction). 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 Calla, atsca/faWaidea.oro. Source of Matching Anticipated Fundt Grantee Funds: Cash/In- Milestone or Task Completion ran GranFunds Matching kind/Federal TOTALS Date Funds Grants/Other State Grants/Other All matching funds will come from (List milestones based on Assuming Haines phase and type of project. Grant Award $ $ Borough $ See Milestone list below.) 7/1113 General funds or other municipal sources RFP for design consulting services 08/01/13 $ $ $2,000 $2,000 Select project design consultant 10/01/13 $ $ $1,000 $1,000 Design project 12/01/13 $30,000 $10,000 $2,000 $42,000 RFP/IFB for contrail 01/01/14 $ $ $ $ construction services Select contractor 02/01/14 $ $ $ $ Purchase boilers stems 03/01/14 $230,000 $10,000 $ $240,000 Install boilers stems 07/01/14 $212,000 $10,000 $10,000 $232,000 $ TOTALS $472,000 $30,000 15.000 $517,000 Budget Categories: Direct Labor & Benefits $ $ $15,000 $15,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $230,000 $10,000 $240,000 Contractual Services $30,000 $10,000 $40,000 Construction Services $212.000 $10,000 $222,000 Other $ $ $ TOTALS $472,000 $30,000 $15,000 $517,000 AEA13-006 Grant Application Page 19 of 24 7/3//2012 Renewable Energy Fund Round 6(> Grant Application V' Al ASK, p p �-� ENERGY AUTHORITY Milestone or Task Anticipated Completion Date Gran ran Fundt Funds Grantee Matching Funds Source of Matching Funds: Cashlln- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ 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. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ r$ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA13-006 Grant Application Page 20 of 24 713/12012 Renewable Energy Fund Round 6 C--:-, AI�KA__ Grant Application ✓ C- _) ENERGY AUTHORITY Milestone or Task Anticipated Completion Date Gran ran Fundt Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cashlln- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ E ut ment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA13-006 Grant Application Page 21 of 24 7/3//2012 Renewable Energy Fund Round 6 ®dEND nc i a�a Grant Application ® ENERGY AUTHORITY ' Proiect Milestones that should he addressPd in Rudnpt Prnnn¢al Reconnaissance - -- Feasibility --- ---- --- -- ------ Design and Penrilffing Construction 1. Project scoping and 1. Project scoping 1. Project seeping 1. Confirmation that all contractor solicitation. and contractor and contractor design and feasibility 2. Resource solicitation. solicitation for requirements are identification and 2. Detailed energy planning and complete. analysis resource analysis design 2. Completion of bid 3. Land use, permitting, 3. Identification of 2. Permit applications (as documents and environmental land and regulatory needed) 3. Contractor/vendor anal sis Y issues, selection and award 4. Preliminary design 4. Permitting and 3. Final environmental 4. Construction Phases analysis and cost environmental assessment and 5. Cost of energy and analysis mitigation plans Each project will have market analysis 5. Detailed analysis of (as needed) unique construction 6. Simple economic existing and future 4. Resolution of phases, limitations, analysis energy costs and land use, right of and schedule markets way issues constraints which 7. Final report and 6. Assessment of should be identified recommendations alternatives 5. Permit approvals by the grantee 7. Conceptual design 6. Final system 5. Integration and analysis and cost design testing estimate 7. Engineers cost 6. Decommissioning old 8. Detailed economic estimate systems and financial 8. Updated 7. Final Acceptance, analysis economic and Commissioning and 9, Conceptual financial analysis Start-up business and 9. Negotiated 8. Operations Reporting operations plans power sales 10. Final report and agreements with recommendations approved rates 10. Final business and operational plan AEA13-006 Grant Application Page 22 of 24 7/3//2012 Renewable Energy Fund Round 6 >4ME-, Grant Application E' ENERGY AUTHORITY SECTION 10 —AUTHORIZED SIGNERS FORM Community/Grantee Name: _ E6 Regular Election is held: Or j Date: y p L Oc� Authorized Grant Sioner(s): Printed Name Title ' Term Signature 6VAY,CGJ4Rn)vyS1 -E) �IAIJ N R J lc� JToto-l�\ T.. c�kc2 O+roc(' N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Slep�c tt Mai oY 1. �aoi/- 0 Grantee Contact Information: Mailing Address: © l Phone Number: qo7 -7(e (,- 2231 Fax Number: C(p7-766 27 f E-mail Address: rrtes� (na?nes�ctE Federal Tax ID #: gab7 6 47 Please submit an updated form whenever there is a change to the above information. AEA13-006 Gmnt Appliwtion RrI 27 Renewable Energy Fund Round 6 � _ Grant Application ®GENE AUTHORITY 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 separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. 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. 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 Mark Earnest Signature Title t Borough Manager Date 09/24/2012 AEA13-006 Grant Application Page 24 of 24 7/3//2012