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Home My WebLink AboutFNSB Ticasuk Brown Pellet BoilerRenewable Energy Fund Round 6 Grant Application �4111111111C)ENERGY ALrHORrrY Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 6 of the Renewable Energy Fund. An electronic version of the Request for Applications (RFA) and this form are available online at: hftp://www.akenergyauthority.org/RE Fund-6 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 aa)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 satisfied 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. 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. AEA 13-006 Application Page 1 of 17 7/3/2011 Renewable Energy Fund Round 6 Grant Application E-) rD ENERGY AUTHORFFY SECTION 1 — APPLICANT INFORMATION Name (Name o1 utility, IPP, or government entity submitting proposal) Fairbanks North Star Borough FNSB) Type of Entity: Local Government Fiscal Year End: June 30 Tax ID # 92-0030612 Tax Status: —For-profit or --X—non-profit check one Mailing Address Physical Address P.O. Box 71267 809 Pioneer Road Fairbanks, AK 99707 Fairbanks, AK 00701 Telephone Fax Email 907-459.1309 907-459-1102 dbrnd@fnsb.us 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Denise Brand Grants Writer -Coordinator Mailing Address P.O. Box 71267 Fairbanks, AK 99707 Telephone Fax Email 907-459.1309 907-459-1102 dbrand(dfnsb.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); 1.2.2 Attached to this application is formal approval and endorsement for its project by Yes 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 ) 1.2.3 As an applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant agreement. 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the application.) 1.2.5 We intend to own and operate any project that may be constructed with grant Yes 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 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 � n%"�� Grant Application I ED ENERGYAUTHORrrY SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title — (Provide a 4 to 5 word title for your project) Ticasuk Brown School Pellet Boiler Project -Phase 2 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. School 785 Lakloey Drive North Pole, AK 99705 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. The nr000sed oroiect will serve the community of North Pole, AK, located within the Fairbanks North Star Borough and which is a part of the Fairbanks North Star Borough School District. 2.3 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 Construction Reconnaissance Design and Permitting Feasibility X Construction and Commissioning Conceptual Design AEA13-006 Grant Application Page 3 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 4111111-) MILD Grant Application �L;ENERGYAUTHORITY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Fairbanks North Star Borough (FNSB) proposes the installation of a wood pellet boiler at the Ticasuk Brown Elementary School. Phase 1 of this project is currently underway through an AEA managed grant agreement with the FNSB. The $550,000, funding for Phase I of this project was provided by the 2012 Legislature through a DCCED grant to AEA. This proposed project, or Phase 2 of this project, will be comprised of 1) Modular pellet boiler unit anchored to concrete sleepers, 2) heat loop to existing school boiler room. The boiler room is to be equipped with new heat exchanger for heat transfer to school system, including heat exchanger, manifolding, controls and re -circulating pump, 3) connection of electrical service from a panel in the existing boiler room, assuming required electrical capacity is available and 4) install pellet silo and auger system for pellet fuel storage and fuel supply stream. To ensure project continuity, the FNSB proposes this final phase of the project also be an AEA Managed Project. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) 1. Anticipated Energy Savings: The FNSB strives to minimize energy costs and actively pursues lower cost energy alternatives whenever possible. The FNSB anticipates that this proposed biomass heating system will augment the diesel boiler currently being used at the school and will eliminate the need for approximately 20,000 gallons of fuel oil currently being used to heat the school annually. This will save the Fairbanks North Star Borough School District approximately $31,000 in annually lower energy costs. 2. Community Awareness: This project will be visible not only to the North Pole community where the Ticasuk Brown Elementary School is located but throughout the entire Fairbanks North Star Borough. Should this project be successful, it could be a powerful way to engage and educate the local community regarding the use of biomass fuels, the benefits of sustainable forest management, and the importance of wood product development in general. 3. Additional Benefits: Renewable energy biomass heating systems save on costs of fossil fuels, potentially lower overall emissions, and offer additional environmental and health benefits to the communities in which they are operated. Additionally, using locally or regionally produced fuels contribute to the local economy. 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 total project cost for both Phase I and Phase II of this project is $900,000. Phase 1 is Funded and Underway An AEA Managed grant with the FNSB for $550,000, provided by the 2012 Legislature, is in process for the completion of Phase 1 of this project. Phase 1 includes: project design, development of heat module specifications, advertising and selecting module manufacturer, award of heat module, permitting, update of construction cost estimate, and delivery of a pellet boiler in a self contained unit. The FNSB assumes that the boiler will be delivered in a self contained housing structure. AEA13-006 Grant Application Page 4 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 Grant ADDlication i-D ENERGY AL THORrrY Phase 2 Request: $350,000 The FNSB is requesting $350,000 from AEA to complete Phase 2 of this project. This proposed project will be comprised of: 1) anchoring the modular pellet boiler unit to concrete sleepers, 2) heat loop to existing school boiler room. The boiler room is to be equipped with new heat exchanger for heat transfer to school system, including heat exchanger, manifolding, controls and re -circulating pump, 3) connection of electrical service from a panel in the existing boiler room, assuming required electrical capacity is available and 4) install pellet silo and auger system for pellet fuel storage and fuel supply stream. The FNSB requests that this be an AEA Managed project. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and yourproject's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $350,000 2.7.2 Cash match to be provided (2012 Legislative Appropriation to AEA through DCCED for Purpose of Completing Phase 1 of Project) $0 2.7.3 In -kind match to be provided $0 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) $350,000 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 $350,000 including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $31,000 Annually Total 20 Year Benefit $620,000 2.7.8 Other Public Benefit (If you can calculate the benefit in Support to local biomass terms of dollars please provide that number here and fuel distributor explain how you calculated that number in your application Energy cost savings to (Section 5.) FNSB School District 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. AEA13-006 Grant Application Page 5 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 alu A W"__ Grant Application t_) ENERGY AUTHORITY The FNSB proposes that this be an AEA managed project. The FNSB anticipates that James Vail, PE will be the Project Manager for this project as he is the AEA Project Manager for Phase 1 of the project. James Vail, PE Energy Infrastructure -Project Manager ivail(a(,aaidea.ora 907-771-3064 The following is the contact person at the FNSB for this project: Phil Streeter, Chief Building Engineer pstreeter(cfnsb.us Phone: 907-459-1352 and Fax: 907-459-1330 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 Plence note this nronosed nroiect is an AEA manaeed project. (see attached timeline and conceptual budget developed by AEA) Please fill out form provided below. You may add additional rows as needed. Start End Milestones Tasks Date Date Delivery of pellet boiler in self Design and construct concrete sleepers contained housing structure and anchor modular pellet boiler unit 05/23/13 09/18/13 Install heat loop to existing school Equip boiler room with new heat boiler system exchanger for heat transfer to school system: including heat exchanger, manifolding, controls and re -circulating um 5/23113 09/18/13 Electrical service functional to Establish electrical service from panel in existing boiler room existing boiler room (assuming required capacitv is available) 05/23/13 09/18/13 Silo and auger system on site Install pellet silo and auger system for pellet storage and fuel supply stream Pellet Boiler Start Up and Testing Start Pellet boiler and test system 09/19/13 09/27/13 Turnover Operation of Pellet Boiler FNSB begins operating pellet boiler 09/27/13 09/30/13 Project Close Out Close Out Agreement with AEA 1 10/01/13 1 10/18/13 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. AEA13-006 Grant Application Page 6 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy 1-uncl Kouna b 411111111D LA A Grant Application 411111MUDENERGY AUTHORTY The FNSB proposes that, like the first phase of this project, this phase also be an AEA managed project. The FNSB anticipates appointing AEA to act as its agent for the design, construction, management and administration of the project This would include: project management, engineering and constructions services, construction management, system start up and testing, turning the project over to the FNSB and final project close out. 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 FNSB renuests that Proiect communications between AEA and the FNSB be directed to Phil Streeter, Chief Building Engineer at 907-459-1352 or pstreeter(a),fnsb.us for all project design, construction and engineering issues. Mr. Streeter is the designated primary contact for the FNSB. Scott Johnson, Director of Public Works at 907-459-1355 or sjohnson(i fnsb.us is the alternative contact person on this project. 3.5 Project Risk Discuss potential problems and how you would address them. The FNSB proposes that to ensure project continuity that this phase of the project be an AEA managed project. The FNSB anticipates that AEA is aware that certain risks are consistent with inclement weather here in Alaska. This includes a disruption of ordered supply materials due to late winter breakup or extreme weather conditions such as spring or summer flooding, icy roads, or heavy snowfalls. The FNSB anticipates that AEA will address these risks with ample lead time and planning in order to be ready for project risks. 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 pellet requirements for the proposed Ticasuk Brown biomass pellet boiler are not known at this time. Wood pellets are commercially available from both in -State and import sources. The FNSB anticipates working with the pellet mill in North Pole that has a capacity of 30,000 tons per year. Should the local provider be unable to meet demand, several sources of pellets in bulk or bagged form are available from the Pacific Northwest and from Canada and are available to be trucked to the Interior. While wood chips are available on the market, they are not readily available in commercial quantities. 4.2 Existing Energy System AEA13-006 Grant Application Page 7 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 /[�E Al ASKA_- - Grant Application I t)ENERGY AUTHORrfY 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. The existing heating system at Ticasuk Elementary School is a fuel -oil fired hydronic boiler. The existing system will remain in place to provide reliable back-up for the pellet boiler system as needed. Pellet systems require similar maintenance and operations labor as oil burners and automated fuel supply, however significantly more fuel storage space. 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. While commercially readily available, and easy to transport and store fossil fuel heating oil costs have increased over the past 20 years, making the need to find viable, more cost effective fuel sources a priority. Biomass fuels tend to be locally or regionally produced, and since the FNSB anticipates using a pellet mill located in North Pole, there is potential for reducing transportation costs and strengthening the local economy. Supporting the development of renewable, local fuel sources is ecologically conscientious and economically sound. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The fossil fuel oil heating market is well established and mature. It is unlikely that the emerging use of woody biomass for heating fuel will have any significant effect on the fossil fuel industry in Alaska for many years. Conversely, the establishment of markets for renewable woody biomass fuels will enhance the development of the biomass fuel industry, including the development of biomass densification facilities for producing pellets, pucks and briquettes, as well as woodchip supplies and distributors. 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 AEA13-006 Grant Application Page 8 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 Grant Application � �- GEMED ENERGY AUTHORITY Basic integration concept Delivery methods A wood pellet hydronic heating system, fired by standard commercial wood pellets is proposed for the Ticasuk Elementary School. A single boiler will require only one fuel storage silo and will be reasonable to maintain. Should a 2MM BtuHR system be installed, it could potentially provide 90% of the heat required for heating the school. Wood pellet systems are less expensive than woodchip systems, require less maintenance and operate nearly as simply as oil -fired boilers. 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 project will be on Fairbanks North Star Borough owned property. The Fairbanks North Star Borough School District will assume the operation and maintenance of the pellet boiler once it is installed and fully operational. 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 The FNSB expects that permits required for the completion of this project will be obtained by AEA. 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 As it will be an AEA managed project, the FNSB anticipates that all environmental issues will be AEA13-006 Grant Application Page 9 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 MUD pLA� Grant Application ®�?ENERGYAUTHORrrY researched and addressed by AEA. This includes without limitation, compliance with all applicable laws for the prevention of pollution, management of hazardous waste, and evaluations of environmental impacts. While the FNSB does not foresee any significant environmental issues that will need to be addressed, as pellet boilers have proven to be extremely clean burning and emit less toxins than existing oil -fired burners. 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 a Phase 1 is Funded and Underway An AEA Managed grant agreement with the FNSB for $550,000 provided by the 2012 Legislature is in process for the completion of Phase 1 of this project. Phase 1 includes: project design, development of heat module specifications, advertising and selecting module manufacturer, award of heat module, permitting, update of construction cost estimate, delivery of pellet boiler. Phase 2 Request: $350,000 The FNSB is requesting $350,000 from AEA to complete Phase 2 of this project. This proposed project will be comprised of: 1) anchoring the modular pellet boiler unit to concrete sleepers, 2) heat loop to existing school boiler room. The boiler room is to be equipped with new heat exchanger for heat transfer to school system, including heat exchanger, manifolding, controls and re -circulating pump, 3) connection of electrical service from a panel in the existing boiler room, assuming required electrical capacity is available and 4) install pellet silo and auger system for pellet fuel storage and fuel supply stream. The FNSB requests that this be an AEA Managed project. 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 Anolication Pace 10 of 17 Phase 2 Renewable Energy Fund Round 6 WK-) n i n-ca: _ Mh Grant Application MMUDENERGY AUTHORry Operating and maintenance costs are unknown at this time. When Phase 1 of this project is completed by AEA, the FNSB will develop a detailed description of: l . Project operations and maintenance activities and issues, and 2. A detailed description of Project performance, including energy output, estimated fuel savings resulting from the operation of the Project, and 3. A description of repairs and modifications to the Project and recommendations for improvements for similar future project; and 4. Any other relevant measures of Project performance reasonably requested by AEA 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: Identification of potential power buyer(s)/customer(s) Potential power purchase/sales price - at a minimum indicate a price range Proposed rate of return from grant -funded project N/A 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The Project Cost Worksheet has been attached with this application. 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. 85-90% • Thermal or electric application. Thermal • Boiler efficiency. 85-90% • Displaced fuel type and amount. #1 Heating Oil (diesel) Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. Unknown, will depend upon size and capacity of wood boiler obtained in Phase 1 of project. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. N/A AEA13-006 Grant Application Page 11 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 4MILD Grant Application <DENERGY AUTHORrry • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? N/A • Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? 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 • 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 Based upon the preliminary cost saving estimate developed in response to seeking funding for the project from the 2012 Legislature, the installation of a wood pellet boiler will potentially save the Fairbanks North Star Borough School district an estimated $31,000 per year in fuel costs with an estimated 20 year savings of $620,000. The escalation of fossil fuels, the benefits of converting to renewable fuels will include cost reductions and stabilization, while lowering the toxic emissions and potential hazards of fuel spills. Economic localization is the benefit derived from using local fuel and local labor to provide heat for public buildings. The money circulates inside local communities and the State, strengthening local and regional economies. SECTION 6— SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on -going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits The FNSB anticipates that existing Fairbanks North Star Borough School District staff and building maintenance processes will be expanded to include operations of the pellet boiler system. Other schools (Montana, Vermont, etc.) have used this process to reduce overall costs while maintaining staff levels and building comfort levels. AEA13-006 Grant Application Page 12 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6� Grant Application E�ENERGYAUTHORrfY Cost savings from the existing purchases of fuel oil will offset the costs of wood pellet fuel and operation and maintenance of the new system. The existing system will remain in place as backup. The life of the existing systems is extended by this limited use. 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. Phase 1 is Funded and Underway An AEA Managed grant with the FNSB for $550,000 provided by the 2012 Legislature is in process for the completion of Phase 1 of this project. Phase 1 includes: project design, development of heat module specifications, advertising and selecting module manufacturer, award of heat module, permitting, update of construction cost estimate, delivery of pellet boiler. Phase 2 Request: $350,000 The FNSB is requesting $350,000 from AEA to complete Phase 2 of this project. This proposed project will. This proposed project will be comprised of: 1) anchoring the modular pellet boiler unit to concrete sleepers, 2) heat loop to existing school boiler room. The boiler room is to be equipped with new heat exchanger for heat transfer to school system, including heat exchanger, manifolding, controls and re -circulating pump, 3) connection of electrical service from a panel in the existing boiler room, assuming required electrical capacity is available and 4) install pellet silo and auger system for pellet fuel storage and fuel supply stream. The FNSB requests that this be an AEA Managed project. The proposed timeline for this project developed by AEA is attached to this application and projects that the project is complete in October of 2013. 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. Representative Tammie Wilson and the Fairbanks North Star Borough Assembly have been actively involved in seeking projects and funding opportunities for the use of biomass boilers in local governmental buildings. Representative Wilson was central in obtaining funding for Phase 1 of this project. SECTION 9 — GRANT BUDGET Tell us how much you want in rant funds Include an investments to date and funding sources, AEA13-006 Grant Application Page 13 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 pL p` Grant Application ��-DENERGY AUTHORrY 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. An AEA Managed grant with the FNSB for $550,000 provided by the 2012 Legislature is in process for the completion of Phase 1 of this project. Phase 1 includes: project design, development of heat module specifications, advertising and selecting module manufacturer, award of heat module, permitting, update of construction cost estimate, delivery of pellet boiler The FNSB is requesting $350,000 from AEA to complete Phase 2 of this project. This proposed project will be comprised of: 1) anchoring the modular pellet boiler unit to concrete sleepers, 2) heat loop to existing school boiler room. The boiler room is to be equipped with new heat exchanger for heat transfer to school system, including heat exchanger, manifolding, controls and re -circulating pump, 3) connection of electrical service from a panel in the existing boiler room, assuming required electrical capacity is available and 4) install pellet silo and auger system for pellet fuel storage and fuel supply stream. The FNSB requests that this be an AEA Managed project. The proposed timeline for this project developed by AEA is attached to this application and projects that the project is complete in October of 2013. The Grant Budget Worksheet for this project is attached to this application. AEA13-006 Grant Application Page 14 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 Grant Application NMI --) ENERGY AUTHORrY SECTION 10 -AUTHORIZED SIGNERS FORM Community/Grantee Name: Fairbanks North Star Borough Regular Election is held: PfnDate: /rt Uh '? ; e� 2-, ZO/ 2 %l <{ 12_ ✓n&V^ ' 1'5 2 , Zo f'2 Authorized Grant Sianerlsl: Printed Name Title Term "nature Luke T. Hopkins Mayor 3 yr I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term 'gnature Luke T. Hopkins Mayor 3 r Looy-Zer2- r,rantPe Cnntact Infnrmatinn- Mailing Address: P.O. Box 71267-1267 Fairbanks, AK 99707 Phone Number: (907) 459-1300 Fax Number: (907) 459-1102 E-mail Address: Ihopkins a@fnsb.us Federal Tax ID #: 92-0030612 Please submit an updated form whenever there is a change to the above information. AEA13-006 Grant Application Page 15 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 � Grant Application 41111111111C)ENERGY AUTHORrY 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. Contact information Attached per grant application. Resumes Not Applicable. The FNSB requests that this be an AEA managed project. James Vail, PE, AEA Energy Infrastructure -Project Manager is the AEA designated Project Manager for Phase 1 of this project. B. Letters demonstrating local support per application form Section 8. See Total Project Snapshot Report from 2012 Legislature attached. C. An electronic version of the entire application on CD per RFA Section 1.7. Enclosed 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. Cost Worksheet per application for Section 4.4.4. F. Grant Budget Form per application form Section 9 with AEA Developed Timeline AEA13-006 Grant Application Page 16 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Renewable Energy Fund Round 6 Grant Application L� ® ENERGY AUTHORITY G. 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 Luke T. Hopkins Signature Title Mayor, Fairbanks North Star Borough Date 09/24/12 AEA13-006 Grant Application Page 17 of 17 FNSB Ticasuk Brown Pellet Boiler Phase 2 Total Project Snapshot Report 2012 Legislature TPS Report 58884v1 Agency: Commerce, Community and Economic Development Grant Recipient: Community & Economic Dev Project Title: Project Type: Equipment and Materials Alaska Energy Authority - Ticasuk Brown and Badger Road Elementary Schools Pellet Boilers State Funding Requested: $550,000 One -Time Need Brief Project Description: I Installation of a 1 to 1.7 MMBTU Pellet Boiler r,unuma rian: Total Project Cost: $550,000 Funding Already Secured: ($0) FY2013 State Funding Request: ($550,000) Project Deficit: $0 House District: Fairbanks Areawide (7-11) Detailed Project Description and jusuncation: The Fairbanks North Star Borough School District (FNSBSD) is facing a budget crisis, much of which is driven by energy costs. The school district is projecting a budget shortfall of approximately $12 million for FY2013. The funding requested here will provide for a 1 to 1.7 MMBTU wood pellet fuel boiler at the Ticasuk Brown Elementary School and as funding permits, Badger Road Elementary School. The Alaska Energy Authority (AEA) will manage the project. The pellet boiler will replace the diesel boiler currently being used and will eliminate the need for approximately 20,000 gallons of fuel oil every year at Ticasuk Brown Elementary School. This project will involve school district personnel and will likely involve local contractors and design engineers. The project will likely employ local residents in construction, keep energy money within the State of Alaska and utilize regional biomass resources from the North Pole area. The installation of a wood pellet boiler will save the Fairbanks North Star Borough School District an estimated $31,000 Project Timeline: The unit will be installed by the beginning of the 2012-2013 heating season. MEntit Responsible for the Ongoing Operation and Maintenance of this Project: Fairbanks North Star Borough School District Contact Name: Brandon Brefczynski Contact Number: 907-465-4916 For use by Co-chair Slap Only: Page 1 $550,000 d20 z Total Project Snapshot Report 2012 Legislature TPS Report 58884vl chant Kemplent contact mtormaclon: Name: Sarah Fisher -Goad Title: Executive Director Address: 813 W. Northern Lights Blvd. Anchorage, Alaska 99503 Phone Number: (907)771-3012 Email: Has this project been through a public review process at the local level and is it a community priority? ❑X Yes ❑ No Contact Name: Brandon Brefczynski Contact Number: 907-465-4916 For use by Co-chair Staff Only: Page 2 3'17 PM 5/2/2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 By: Assembly Luke Hopkins Introduced: 12/08/11 Amended: 12/08/11 Adopted: 12/08/11 FAIRBANKS NORTH STAR BOROUGH I:t�YeIl�jyNL1►Le � , , A RESOLUTION IDENTIFYING AND SUPPORTING LEGISLATIVE PRIORITIES WHEREAS, the Fairbanks North Star Borough Assembly identifies and supports the following legislative priorities for 2012. Legislative: • Funding to Host Society of the 2014 Arctic Winter Games • PERS Termination Change • Human Services Community Matching Grant Increase • Voluntary Wood Stove Change -Out Funding • Legislation to finance fuel conversions to a natural gas distribution system in the Fairbanks North Star Borough • Mandatory Restitution to Reimburse Animal Control for Boarding Costs for Animal Cruelty Cases and other criminal cases • Definition of Mandatory "Charitable" Exemption FNSB Infrastructure: Deferred Maintenance • Pioneer Park Deferred Maintenance • Mary Siah Pool Replaster • Road Service Area Funding • Ambulance Equipment Replacement • Animal Shelter Improvement Analysis Improvements • Borough Facilities Energy Efficiency Upgrades • Carlson Center Cold Storage • Pioneer Park Air Museum Improvements • Growden Park/Gold Panner Restrooms • FMATS Funding • STIP Funding for local roads • Birch Hill Improvements • Tanana Lakes Infrastructure Fairbanks North Star Borough, Alaska RESOLUTION NO. 2011-44 Page 1 of 4 46 • Borough Emergency Operations Center Equipment 47 • Transit Maintenance Facility Addition ( State Match) 48 • North Star Fire Station # 1 Upgrade 49 • Two Artificial Turf Fields: Kiwanis Field & Adjacent FYSA Field 50 • 100-Mile Loop Trail: Partial Relocation within Cripple Creek/Rosie 51 Creek Area 52 53 Library 54 • Noel Wien Library Maintenance 55 • New North Pole Branch Library Matching Grant 56 57 School Facilities 58 59 • Ryan Middle School Replacement 60 • School Building and Library Biomass Boiler 61 62 Community Priorities 63 64 Reversing Trans -Alaska Pipeline System (TAPS) throughout 65 decline — the FNSB encourages the Alaska State Legislature and 66 the Governor to work together to create public policy that 67 encourages oil development and exploration to stop the annual 68 throughput decline that threatens to directly impact the FNSB 69 through decreased property taxes attributable to TAPS. Indirectly, 70 a continued decline will affect support industry jobs, our local 71 refinery operations and related jobs, Eielson AFB, state revenue 72 sharing, education funding and capital projects funding that flow 73 from the State to the FNSB. 74 75 High Cost of Energy — the FNSB encourages the Alaska State 76 Legislature and the Governor to support initiatives that lower the 77 cost of energy in the Interior. The high cost of energy in the Interior 78 is causing financial hardship and limiting economic growth. To 79 alleviate this situation, we encourage the support of initiatives that 80 lower energy costs and that advance the State's renewable energy 81 goals and continued support for programs and advance energy 82 efficiency and conservation within the state. 83 84 In -State Gas Pipeline - The FNSB encourages the Governor and 85 State Legislature to suspend the AGIA process, if necessary, and 86 develop an LNG project that builds a state owned large diameter 87 gasline, following the previously permitted route adjacent to the 88 TAPS line, to the deepwater ice free port of Valdez, with a spur line 89 to other southcentral locations. 90 Fairbanks North Star Borough, Alaska RESOLUTION NO. 2011-44 Page 2 of 4 91 Support funding for the University of Alaska — the FNSB 92 encourages the Alaska State Legislature and the Governor to 93 maintain strong support and funding for the University of Alaska. 94 The FNSB recognizes the University of Alaska as an integral factor 95 in the social and economic development of our state. The 96 University's ability to serve its mission for Alaska depends on 97 financial support, and the recognition of its role in shaping the 98 future of Alaska. 99 100 Strengthen Military Presence in Interior Alaska — FNSB encourages 101 the Alaska State Legislature and the Governor to strengthen the 102 United States Military presence in the Interior by supporting the 103 Strategic Plan developed by the Alaska Military Force and Structure 104 Team (AMFAST), the Joint Pacific Alaska Range Complex 105 (JPARC) and the missile defense system components at Fort 106 Greely and Clear Air Force Station. 107 108 State Fund for Transportation — the FNSB encourages the Alaska 109 State Legislature and the Governor to create a funding mechanism 110 for maintenance and capital improvements for investment in 111 Alaska's land, water and air transportation systems. 112 113 Support funding for UAF Community and Technical College (CTC) 114 Process Technology Program — FNSB supports a direct funding 115 request for the CTC Process Technology Program for operational 116 expenditures. This program has moved to a larger facility. The 117 graduates from this program are able to secure high paying jobs in 118 Alaska's oil field production and oil transportation industries. 119 120 The Fairbanks North Star Borough supports the continued 121 development and construction of the Fairbanks Pipeline Training 122 Center. 123 124 NOW, THEREFORE, BE IT RESOLVED, that the Fairbanks North Star 125 Borough Assembly supports these legislative priorities. 126 127 BE IT FURTHER RESOLVED that copies of this resolution shall be sent to 128 the Alaska Interior Delegation, the Honorable Governor Sean Parnell and the Alaska 129 Congressional Delegation. 130 131 132 Fairbanks North Star Borough, Alaska RESOLUTION NO. 2011-44 Page 3 of 4 133 PASSED AND APPROVED THIS 81h DAY OF DECEMBER, 2011 Diane Hutchison Presiding Officer ATTEST: Mond Lisa Drexler, MMC 134 Municipal Borough Clerk 135 136 Ayes. Davies, Sattley, Dukes, Winters, Musick, Kassel, Hutchison 137 Noes: Want 138 Excused: Howard Fairbanks North Star Borouqh, Alaska RESOLUTION NO. 2011-44 Page 4 of 4 4.4.4 Project Cost Worksheet Ticasuk Brown School Pellet Boiler Project - Phase 2 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. FNSB anticipates obtaining biomass wood pellets from a North Pole mill that has a reported capacity of 30,000 tons per year. 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/boilerslother 2 boilers on School site ii. Rated capacity of generators/boilers/other 1.5 MMbtu's each iii. Generator/boilers/other type Hydronic iv. Age of generators/boilers/other 29 years old v. Efficiency of generators/boilers/other 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 Not Available ii. Annual O&M cost for non -labor Not Available 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 ii. Fuel usage Diesel [gal] #1 Heating Oil (diesel) Other N/A iii. Peak Load 2.34 MBtu's iv. Average Load 1.87MBtu's v. Minimum Load 0 vi. Efficiency 80% vii. Future trends N/A d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 19,250 gallons per year ii. Electricity [kWh] N/A iii. Propane [gal or MMBtu] N/A r 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. FNSB Ticasuk Brown Pellet Boiler Project Phase 2 iv. Coal [tons or MMBtu] N/A v. Wood [cords, green tons, dry tons] N/A vi. Other N/A 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) Biomass Wood Pellets. Est. 1.7 MMBtu [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] N/A ii. Heat [MMBtu] Approximately 1.7 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 [cords, green tons, dry tons] N/A iv. Other N/A Project Cost a) Total capital cost of new system $900,000 ($550,000 for Phase 1 obtained from 2012 Legislature and underway as AEA Managed Grant with FNSB) b) Development cost c) Annual O&M cost of new system Unknown d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity N/A ii. Heat Average of 19,250 gallons of #1 Heating Oil (diesel) used annually iii. Transportation N/A b) Current price of displaced fuel $3.69 per gallon on 9/21/12 c) Other economic benefits Support local economy, decrease toxic emissions d) Alaska public benefits Support use of sustainable energy plentiful in Alaska Power Purchase/Sales Price FNSB Ticasuk Brown Pellet Boiler Project Phase 2 a) Price for power purchase/sale Wood Pellets $295/ton on 9/21/12 Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Anticipate proposed pellet boiler would save the Fairbanks North Star Borough School District approximately $31,000 annually in fuel costs. Payback (years) 20 year potential savings of $620,000 FNSB Ticasuk Brown Pellet Boiler Project Phase 2 Grant Budget Form Section 9 FNSB Ticasuk Brown School Pellet Boiler Project -Phase 2 The following budget was initially developed by AEA for Phase 1 of the Ticasuk Brown School Pellet Boiler Project and the FNSB added to the estimate to include Phase 2; ensuring both the work to be completed and the corresponding funding required to complete the project is secured. Description Quantity Unit Unit Cost Budget Estimate Construction: General Conditions 1 LS $30,000 $30,000 Mob/Demob 1 LS $12,000 $12,000 Sitework 1 LS $48,000 $48,000 400 SF Insulated Building 1 LS $117,060 $117,000 Electrical Service 1 LS $10,500 $10,500 Boiler 1 LS $140,000 $140,000 Buffer Tank 1 LS $20,000 $20,000 Silo 1 LS $34,525 $34,525 Auger Sstem 1 LS $15,000 $15,000 Misc Material Over $5,000 1 LS $74,715 $74,715 Misc Material Under $5,000 1 LS $13,000 $13,000 Freight 1 LS $55,000 $55,000 Construction Equipment 1 LS $21,700 $21,700 Subcontractors 1 LS $36,000 $36,000 Construction Subtotal $627,440 $627,440 Bonds & Insusrance 1.5% $9,415 Profit @ 7% $43,940 Contingency @ 15% $94,160 Estimated Total Const. Cost $774.955 Engineering 10% $77,525 Administration AEA $38,000 FNSB $9,520 TOTALS $ $ $900,000 Note: $550,000 is already secured for the total project. The FNSB is requesting $350,000 from AEA to complete the project. 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