HomeMy WebLinkAboutFINAL AEA Grant Application R-5
Renewable Energy Fund Round 5
Grant Application
AEA 11-005 Application Page 1 of 28 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for a
Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the
forms are available online at: http://www.akenergyauthority.org
Grant Application
Form
GrantApp5.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet
5.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget5.
doc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetIn
structions5.doc
Instructions for completing the above grant budget form.
Authorized
Signers Form
Authorized
signers
form5.doc
Form indicating who is authorized to sign the grant, finance
reports and progress reports and provides grantee information.
• 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 completion of each phase.
• 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.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
SECTION 1 – APPLICANT INFORMATION
Name Port Graham Village Council
Type of Entity:
Federally Recognized tribe
Mailing Address
P.O. Box 5510
Port Graham, Alaska 99603
Physical Address
5510 Main Street
Port Graham, Alaska 99603
Telephone
907-284-2227
Fax
907-284-2222
Email
Francis907@hotmail.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Patrick Norman
Title
First Chief
Mailing Address
P.O. Box 5510
Port Graham, Alaska 99603
Telephone
907-284-2227
Fax
907-284-2222
Email
pnormanvc@hotmail.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your application
will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
XX A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for 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
or
No
1.2.3. As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement.
Yes
or
No
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
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant funds for the
benefit of the general public.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
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)
Type in your answer here and follow same format for rest of the application.
Port Graham Village Biomass Waste Heat Demonstration Project
2.2 Project Location – Port Graham Village is predominately Alutiiq heritage, and approximately 85%
of the residents are Alaska native, residing in the Native Village of Port Graham overlooking Cook Inlet
in southcentral Alaska. Port Graham Village is only accessible by water or air. The community desires to
maintain its cultural identity and ties, including developing means to increase its self-sufficiency. Many
members participate in traditional hunting and gathering methods and observe cultural traditions.
Effectively using its forest resources will provide Port Graham with greater self-sufficiency, versus its
current need to import diesel.
Households and community buildings in the target area rely, heavily on electricity and heating diesel fuel
for energy services.1 The area encompasses 5.9 square miles of land with adjacent village corporation
lands extending approximately 20-miles from the community; winter temperatures range from 14 to 27
degrees Fahrenheit; while summer temperatures vary from 45 to 60 degree Fahrenheit. Average annual
precipitation is 24 inches.
2.2 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind XXX 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)
Reconnaissance Design and Permitting
Feasibility XXX Construction and Commissioning
Conceptual Design
2.3 PROJECT DESCRIPTION
Developing renewable heat and power is a key component of the Native Village of Port Graham’s long-
term vision to increase its self-sufficiency, along with its cultural and economic sustainability. Port
Graham, along with its sister Native Village of Nanwalek, has successfully and methodically undertaken
planning and feasibility studies to envision and move towards this vision of energy sustainability. Port
Graham’s vision is outlined in the Phases below, which includes expansion. Port Graham Village Council
will own and operate the heating system once it is completed, increasing its self-sufficiency. Based on the
1 Port Graham School is owned and operated by Kenai Peninsula Borough that by singular exception heats the
school with propane that they supply.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
phasing naming conventions employed by the Port Graham Village Council, we are currently asking for
funding for Phase 3 Construction which coincides with AEA Phase IV - Construction.
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
Planning and
Feasibility
Studies
Pre‐
Construction
Activities
Construction Operations Planning for
Expansion
Tribally‐
Owned
Biomass
Utility
This project supports Port Graham’s Integrated Resource Management Plan2 to “Respectfully utilize our
natural resources to provide social and economical benefits to our people.” By using the skills and
capabilities of the project development team to address pre-construction requirements to construct and
operate a biomass heating system, Port Graham will take a key step towards its energy vision. The
system, once built, will be sustainable. The feedstock comes from the adjacent, local forests. The tribal
administrator will manage the biomass, heating system, and local Port Graham residents will staff the
day-to-day operations.
From 2006-2009, Port Graham and its tribal members participated in Integrated Resources Management
Plan (IRMP) for Nanwalek and Port Graham, Phase 1 and II, with support from the U. S. Bureau of
Indian Affairs. The Tribe identified and documented in these IRMPs a focus to develop renewable energy
projects and specifically, biomass projects 3.
Port Graham Village Council assisted by Chugachmiut with $100,000 of funding from AEA are
in the pre-construction phase to develop a biomass community building heating system in Port
Graham, Alaska. This proposal is based on recently completed feasibility and planning studies.
“The Potential for Biomass District Energy Production in Chugachmiut Communities,” was
prepared by the Energy and Environmental Research Center at the University of North Dakota,
and resulted in the selected, feasible biomass technology option of a GARN Boiler. It will
provide hot water heat from a woody biomass fuel source that can be sustainably harvested from
forestlands near the community. The forestlands are owned by Port Graham Village Corporation
and Native allotment owned lands. An existing road system supplies access to the fuel source. In
October 2009, Building Tribal Energy Development Capacity for the Port Graham Biomass
Project, was completed. It documented the Village Council’s capacity and capability to staff and
manages a biomass utility business. This project was funded by the Office of Indian Energy and
Economic Development.
A conceptual design and feasibility review for a central combined heat and power (CHP) biomass-fired
plant was completed in 2009. Detailed engineering and economic evaluations were included. Three –
phase power grid connection is necessary for a central CHP facility viability. In the mean time,
community buildings and homes in Port Graham must rely on expensive diesel fuel for heating. The
proposed GARN Boiler hot water distribution system will be designed to:
• Heat the identified community buildings at significantly lower cost than diesel fuel;
• Be expandable to connect to additional GARN Boilers and hot water distribution systems to heat
homes throughout the Port Graham community, and eventually;
• Be connected to a central CHP biomass fired facility.
When constructed, the biomass heating system will provide hot water to heat five Port Graham
2 “Integrated Resource Management Plan for Nanwalek and Port Graham” 2006 prepared by ASCG incorporated of
Anchorage, Alaska
3 Integrated Resources Management Plan for Nanwalek and Port Graham, Phase II, October 2009, Page 34.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
community buildings. The existing diesel-fired hot water heating equipment will be retained and used for
backup. Community buildings that will be supplied with hot-water heat from the GARN Boiler system
include the following structures. All but one are wood structures with metal roofs, and are either on wood,
concrete, or concrete block foundations. These buildings are currently heated with diesel-fired, hot water
base-board systems. The proposed biomass system displaces 80-85% of the diesel to heat these
community buildings. See Table 1 Community Building Heat Loads, Fuel Costs and Projected Savings,
below.
Table 1. Community Building Heat Loads, Fuel Costs and Projected Savings
Heating Area sq ft Qty heat requirement - btu/hr
residence 0 65,000
Boiler house 288 1 18,720
Clinic 5400 1 351,000
Tribal Council Bldg 7392 1 480,480
Native Corp. Office/Museum 3072 1 199,680
Public Safety Building 6144 1 399,360
subtotals 22,296 5 1,449,240
1,449,240 btu/hr
693,750 btu/hr
Historic Diesel Use 80% Capacity GARN WHS 3200 System
Annual Fuel Use 12,000 gpy - diesel Annual Fuel Use-Bone Dry Ton (BDT) 101
Fuel Cost $6.00 per gallon Cost per BDT $100.00
Annual Fuel Cost $72,000.00 Annual btu Supplied (billion btu/yr) 1.0752
Purchased Energy (Diesel) 1.680 billion btu/year Unmet Heat Load ( million btu/yr) 268.8
BTU supplied to Buildings (80% efficent Boilers) 1.344 billion btu/year Diesel gpy to supply remaining heat load 2,400
100% Capacity Estimated Biomass Fuel Requirement Annual Energy Cost of 80% Capacity
Hours per Year to Opperate GARN System 1,937 hours Garn WHS 3200 System
Spruce Biomass energy content 7,100 btu/lb Annual Diesel Cost $14,400
Garn WHS 3200 Fuel Use 130 lb/hr Annual Biomass Fuel Cost $10,100
Annual Fuel Use 252,394 lb/yr Estimate Total Fuel Cost $24,500
100% Capacity GARN WHS 3200 System 126 BDT Historic Annual Fuel Cost $72,000
Diesel fuel saving $57,600
Estimated Annual Fuel Savings $47,500.00
system peak load
Garn WHS 3200 Estimated Peak load output (75% efficent)
Port Graham Village Corporation has asked Chugachmiut Forestry and Fire Management to develop a
Forest Management Plan (PGVC-FMP) for their timberlands suitable for biomass fuel supply. This
PGVC-FMP will use the existing road system to access areas where timber stand improvement projects
will be conducted. Windthrow and other damaged trees can be accessed from this road system.
Considerations include resource ownership and compensation plan, harvesting planning process and
approvals, permitting; employment requirements (number of people involved, payroll, benefits, etc);
equipment requirements for harvesting, transportation and inventory management (specifying equipment,
and estimating costs and maintenance budgets); and inventory storage requirements.
Port Graham Native allotment landowners that desire to participate in the fuel supply for the biomass
project will have Chugachmiut Forestry and Fire Management develop a Forest Management Plan (NA-
FMP) for their timberlands suitable for biomass fuel supply. Part of this process includes identifying
specific Native allotment owners and the amount of timberlands they would like to have participated in
the fuel supply process as well as conducting the required NEPA documents for Native Allotments.
Staffing requirements are anticipated to initially require 2-3 people to stockpile fuel during summer
months and to operate and maintain the system during cooler months. Eventually a larger fuel supply
extraction crew, or better described as a harvesting crew, will be required to support a central CHP plant
fuel requirements.
The selected site for the GARN Boiler is the Old Water Plant Building, owned and controlled by Port
Graham Village Council. They will own and operate the facility. Nearby community buildings that will
be heated by the proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building
housing a 4-wheeler foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office,
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
the Port Graham Museum and the Port Graham Corporation Office.
A detailed project cost assessment is currently being completed via a DOE Energy Efficiency Block
Grant (EECBG). A final report will be issued in early October 2011. The GARN Boiler will use a
locally available, sustainable supply of biomass fuel. Preliminary findings suggest that two Garn Boiler
model WHS-3200 are required to satisfy the heating demand for the selected community buildings.
Capital investment requirements for the GARN Boilers, the hot water distribution (piping) system, and
building retrofit to integrate the new hot water supply with existing fuel oil fired systems is anticipated to
be approximately $200,000. Fuel cost savings, diesel vs. wood, is projected to be approximately $47,500
per year at current diesel prices. As diesel fuel cost is expected to continue rising, fuel cost savings could
be substantially higher. Preliminary findings suggest that the project to heat community buildings will
have an eight to ten pay out period. The engineering and financial consulting team is providing realistic
economic projection for development and operation of the proposed GARN Boiler system using
information provided by the equipment manufacturer, Port Graham Village Council and Chugachmiut.
An economic model is being refined for the final report to demonstrate the financial viability of the
GARN Boiler project. Key input parameters include capital costs, significant operating costs (fuel,
supply, labor, maintenance, etc.), and financing considerations (debt / equity ratio, grant support, interest
rates, taxes, etc.). Model outputs are return on equity investment, debt service coverage ratio and net
present value.
An economic model is being developed to assess the financial viability of the GARN Boiler project. Key
input parameters include capital costs, significant operating costs (fuel, supply, labor, maintenance, etc.),
and financing considerations (debt / equity ratio, grant support, interest rates, taxes, etc.). Model outputs
are return on equity investment, debt service coverage ratio and net present value.
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.)
The cost of diesel fuel is inhibiting growth in Port Graham; this project will provide a means for growth
by providing the Pre-construction activities to develop a locally sustainable and economic biomass fuel
source. The following benefits have been documented in previous planning and feasibility studies and
based on the biomass heating system being operational.
• Increased cash in the local economy. The project will lower the cost of heating community
buildings, by reducing diesel fuel consumption, for which currently money flows directly out of the
Village. Up to 9600 gallons of diesel will be displaced annually or $57,600 of diesel fuel costs.
• Increases village self-sufficiency and sustainability. Developing and using locally available fuel for
heating will lower the cost of heating community buildings and increase the village’s self-sufficiency.
The Village Council will control management, operations, and maintenance of the biomass heating
system. This effort also helps the Tribe guide its future while preserving its culture and way of life.
• Increases energy supply security. The community’s biomass heating system reduces dependency on
outside interests for one of its most critical needs, heating fuel.
• Creates meaningful employment and training for community residents. Supplying fuel and
managing operating and maintaining the biomass heating system will require several new jobs, which
will address one of the critical parts of the community’s desire for self-sufficiency.
• Reduces home heating costs. Making it more inviting for Port Graham families to remain in Port
Graham and not go outside the community to seek employment or housing opportunities.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
• Direct economic benefit to Port Graham. Local resources will be used for biomass fuel supply.
Payments provided under purchase agreements to local landowners will increase income in the local
Port Graham economy.
• Improved Forest Management. Finalizing a forest management plan that includes woody biomass,
fuel supply, production for a 100-year sustainable yield and local management will address forest
health issues, wildlife management, environmental concerns, recreation, and other forest management
attributes that includes forest extraction (fuel supply) and regeneration plans.
• Reduces green house gas emissions. Biomass renewable energy projects are considered carbon
neutral.
• Critical step to achieve Port Graham’s long-term vision. The Village Council views the
construction of the biomass system as critical steps to eventually realize its biomass-fired Combined
Heat and Power (CHP) utility goal. The long-term vision includes a CHP utility that will lower the
cost for community, commercial and residential heating, as well as provide reliable 3-phase power
needed to support economic development.
• Serves as a demonstration project for other construction activities. Construction
activities are critical to bring a biomass project on-line. This effort can provide a roadmap for
other small, remote Alaskan communities that also have a sustainable biomass resource.
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.
Costs associated with the project have been estimated at $485,829 as summarized below and provided in
this application.
A preliminary construction project cost estimate was developed by the T. P. Roche Company, whose team
includes a biomass project development and financial consultant, a biomass plant design engineer, and a
biomass supply consulting forester.
Capital Investment is based upon preliminary design and engineering estimates provided by rem
Engineering, Inc. Fuel cost estimates are based on prior feasibility study findings and Chugachmiut
forester assessments. Fuel usage and online stream factor are based on rem Engineering, Inc. input.
Refer to the Cost Benefit Worksheet regarding project payback and the cost benefit ratio.
To assess risks associated with the project, rem Engineering, Chugachmiut and Port Graham evaluated
project performance sensitivity to key assumptions. Those assumptions are listed and discussed here.
Estimated Direct Financial Benefit – The annual cash influx benefit to Port Graham community as
measured from the economic mode base case for direct financial benefit is estimated to be $10,096 fuel
supply purchase and $15,000 payroll. The fuel purchase expenditure includes labor and stumpage fee to
timber landowner for fuel supply. If during the demonstration phase of the project, the Corporation
contributes wood, then that would be a tax contribution.
Estimated Public Benefit – An economic multiplier in dollars was not developed but an assumption of a
2- to 5-times multiplier on the Estimated Direct Financial Benefit would be a good indicator.
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. $426,833
2.7.2 Other Funds to be provided (Project match) $58,995
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $485,829
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet including
estimates through construction)
485,829
2.7.5 Estimated Direct Financial Benefit (Savings) $57,600/year
2.7.6 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.)
$25,096/year
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.
For this project the Port Graham Village Council will enter into an agreement with Chugachmiut to
provide Project Management and Technical Assistance. Mr. Charles Sink will be the Principal-in-Charge
of the direction and management of this project. Mr. Sink, Director of Chugachmiut Enterprise and Trust
Division has extensive experience in this field. His resume has been attached as an integral part of this
application.
His management of this project will be complemented by additional Chugachmiut staff including
Chugachmiut Forestry Manager Nathan Lojewski and Chugachmiut Facilities and Project Manager Elmer
Moonin. Additional resources are discussed in Section 3.4 below.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or
table attachment with a summary of dates below.)
Scope of Work
The Scope of Work is Phase IV activities corresponding to Alaska Energy Authority’s Request for Grant
Application, Renewable Energy Fund Grant Recommendation Program Round V. Phase IV project
activities include construction, commissioning, initial operations and reporting. Specific tasks are
described below.
Phase IV Activities and Milestones
Task 1 - Renewable Energy Resource
Our objective in this task is to insure the timberlands used for the biomass fuel supply are ready for
harvesting. We will be in contact with timberland owners regarding the timber harvest schedule and
accessibility to the timberlands. In addition, we will confirm the timber harvesting schedule with for the
timber harvesting company/village corporation and insure all loggers are properly trained and available.
Task 2 - Verify and Update Projections and System Efficiency
Prior to and at the time of construction; contracts and agreements, labor, biomass fuel, construction
material, equipment delivery, contractors and weather projections will be reviewed and updated for any
effects to project budget or schedule. The project team will review the updated projections on the project
schedule, budget, resource and trained availability for final verification of project readiness. Any
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
adjustments and remedies will be implemented to complete the project as described.
Task 3 - Existing Heating Systems
Our objective in this task is to coordinate the integration of the new biomass heating system loop with the
selected community buildings heating systems. The selected buildings that will be heated by the
proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building housing a 4-wheeler
foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office, the Port Graham
Museum and the Port Graham Corporation Office. These buildings are heated by baseboard circulated
hot water/glycol mixture heating systems. The biomass boiler heating system loop will become the
primary source of heating for these buildings with the more expensive existing fuel oil heating systems
becoming redundant back-ups. The two systems will remain separate, distinct systems protected with
valves, shut-offs and instrumentation for reliable service to buildings providing important community
services such as the health clinic. Protections and monitoring for back flow prevention, excess pressure,
freezing, contamination and heating system switching to back-up will be implemented.
Task 4 - EPC Contracts / Agreements
The overall goal in this task is to maximize flexibility and options, limit liabilities and structure the right
combination of contracts based on available funding resources. Alternatives include lump sum, open
book cost plus, guaranteed maximum price (GMP) and other types of contracts. Other considerations
include favorable terms for payment, equipment deposits and performance bonds and transferring risk
associated with construction while still maintaining control over cost and quality. We will build into the
construction contracts provisions to assist the sponsor’s various contractors to work together. Included
would be management tools and contracting industry standards and procedures to implement a
chronological list of all the important steps from initial development to final completion. We would
ensure that every task and step has an associated person who is responsible for seeing that it gets
completed, that accounting is conducted properly and regularly, and that various contractors coordinate to
achieve the best result. We will seek opportunities for the village participation in the process (site
preparation, foundations, buildings, roads, etc.)
Task 5 - Proposed System Design: Construction and Commissioning
Our objective in this task is to construct and commission the project. We will develop a construction and
commissioning schedule for all phases of construction. We will track physical changes (location,
elevation, type) to the heating system loop, interconnection points and boiler and building specifications
on as-built drawings in the field. These changes will then be incorporated into a final set of as-built
drawings for the project once commissioning is complete and the project is in operation. Start-up,
commissioning and system operational requirements and manuals that have been developed in phase 3
will be implemented. Specific tasks will include:
• Construction Plan and Schedule
• Commissioning Plan and Schedule
• Modifications to Design during Construction
Task 6 - Staffing Plan
Finalize workforce plan for recruiting and managing personnel for facility construction, operation, and
fuel supply collection and management. Document Plant Manager qualification requirements to support
recruiting plan. Develop detailed operator qualifications package and job descriptions for all employees.
Complete training program design. Hire employees to staff the boiler house as well as fuel harvesting
operations. Specific tasks will include:
• Recruiting plan
• Complete job descriptions for all employees
• Complete training program
• Hire employees
• Implement training program
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
Task 7 - Project Cost
• Tracking project cost against project budget
• Propose budget modifications (as needed)
• Manage cost overruns
Task 8 - Environmental
• Environmental monitoring (as required by permitting and determined in Phase III)
Task 9 - Permitting
• Reporting to permitting agencies (as required and determined in Phase III)
Task 10 - Analysis and Recommendations
• Update business plans and agreements as needed to account for actual costs
• Final project report (as built specifications, drawings, final budget, schedules, and
recommendations)
• Periodic O&M reports (actual O&M, fuel and equipment costs, energy output, project
availability, conversion efficiency, update renewable energy resource assessment)
• Community Briefings - Inform Council and community with regular financial and project
developments reports.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The Milestones
must also be included on your budget worksheet to demonstrate how you propose to manage the project
cash flow. (See Section 2 of the RFA or the Budget Form.)
Please refer to Section 3.2 Project Schedule for a full listing of Project Milestones. A Gantt Chart has
been attached to this application that was developed based on the aforementioned Project Schedule and
the assumption funding will be awarded no later than July 1, 2012. All tasks and milestones have been
further cross-referenced with the Project Budget.
3.4 Project Resources
Describe the personnel, contractors, 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.
Organization Description
The Port Graham Village Council will enter into an agreement with Chugachmiut to provide Project
Management and technical assistance with this project. For Port Graham, Chief Patrick Norman will
provide on-site project management. Chief Norman will work closely with Charles Sink of Chugachmiut
to coordinate project management activities. Port Graham Tribal Administration will provide the services
of Ms. Francis Norman, Tribal Administrator and Dana McMullen, Tribal Bookkeeper to perform
reporting and accounting duties for this project.
Charles Sink, Chugachmiut Director Enterprise and Trust Services will manage Chugachmiut’s
involvement of this project. Elmer Moonin, Chugachmiut Facilities and Project Manager and Nathan
Lojewski, Forestry Manager will support him.
The Project Development Team will include a number of consultants with particular expertise in
development of biomass-fired power plants. They are T. P. Roche Company (Tom Roche, economic
modeling, prospectus, deal structure, facilitation, fuel supply issues, renewable energy credits, contract
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
negotiations, etc), a qualified engineer or engineering firm (engineering, EPC issues facilitation), and a
qualified attorney (technical support on contract negotiations). These supporting organizations
qualifications for project participants are provided below. Other specialists may be added to support
specific activities as the project proceeds (staffing, training, project financing, etc.).
Project Facilitation
We will develop “working teams” comprising representatives of the Port Graham Village Council, Port
Graham Village Corporation, Chugachmiut and consultant representatives, state officials, and others, as
appropriate, to facilitate project development. These work teams will address project specific issues such
as commercial terms, permitting, etc.
Reporting
We will provide monthly status reports and summary reports at each project milestone.
Commitments
This project has brought together several partners to ensure the success of this project. The Port Graham
Village Council, the Port Graham Corporation and Chugachmiut.
The Port Graham Village Council has committed a 360 square foot building, with an estimated assessed
value of $23,000, to this project to house the GARN boilers. The building was used to house the Port
Graham Pump House for supplying the community with potable water. This building will require some
minor modifications to meet state fire codes. Mr. Walter Meganack, Jr. has provided a letter of support to
illustrate the commitment Port Graham Corporation has in this project.
Chugachmiut has committed the Health and Dental Clinics to participate in this demonstration project as
a show of support to this community so deeply invested in bettering the quality of life for its residents.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
As a key project funder, providing AEA with information about the Port Graham Village Biomass Waste
Heat Demonstration Project is important to us. In addition to the steps identified below, the Project
Manager will meet with the AEA COTR to determine if other communication steps are needed, and/or if
some of the proposed steps should be replaced with other procedures.
1. Project Manager, with assistance from technical representatives will keep a daily log of
operations. Monthly reports will be provided to AEA Contracting Officer’s Technical
Representative (COTR) assigned to project to assess project completion rate and project
spending. Use of electronic mail (email) and telephone communication will be utilized to extent
possible.
2. Project management team will provide Project Manager with verbal and written reports. Written
reports will be submitted monthly.
3. Project development in Phase IV will include daily site meetings by Site Project Manger Chief
Patrick Norman who will record daily log of operations overseeing contractor hired. Biomass
Plant Engineer, will visit site periodically during project development along with Project
Manager. Reports of site visits will be submitted to Biomass Plant Engineer who will include
pertinent information on site development to COTR.
Project testing of technology will be overseen by Biomass Plant Engineer who will provide written
reports to Project Manager. Project Manager will provide relevant information to COTR.
3.6 Project Risk
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
Discuss potential problems and how you would address them.
Potential problems are identified and include a risk assessment and how we would address the risk.
Mention of probability will be stated for some potential problems.
Potential problems are identified and discussed as follows:
1. Renewable Supply Plan Risks:
a. Fuel source agreements with local landowners. Port Graham Corporation and willing
Native allotment owners are essential for the operation and sustainability of the proposed
Port Graham Village Biomass Waste Heat Demonstration Project system. Initially fuel
will be provided through an agreement with the Port Graham Corporation, however the
amount of fuel to be supplied from each landowner will depend on how successful this
demonstration proves to be and by how much volume will come from each landowner
and the stumpage price that they expect. A biomass timber cruise is proposed in Phase III
tasks to fully assess fuel supply sustainability. Landowners will be presented with an
understandable measurement system to determine how much and when biomass will be
harvested from their lands. Biomass is usually measured in tons and such measure needs
to be demonstrated to the landowners. Some examples of how this could be done include
weighing whole trees harvested or chipping trees and weighing the chips produced.
Stumpage price may the more difficult negotiation with the landowners. Area landowners
during a timber sale late 1980s and early 1990s experienced peak stumpage prices for an
export log sale. For Native allotment owners, BIA will be asked to bring one of their BIA
Northwest Region log-scalers that have current market knowledge of chip markets and
biomass markets to talk to local landowners. Since Port Graham Corporation would
benefit from cheaper power, a reasonable assumption is made that they would agree to a
more reasonable stumpage fee for the project viability since they would be the majority
fuel source supplier and the major benefactor of biomass project. Biomass obtained from
Native allotment land could also be milled in a small local sawmill for specialty products.
If such wood were sold at higher stumpage fees than chips produced, negotiating chip
prices with them probably would be more favorable.
2. Verify and Update Projections and System Efficiency Risks:
a. Inclusion of a Biomass Plant Engineer in the development process will help identify and
resolve possible design and construction errors. Purpose of verification and system
efficiency is to ensure project is completed successfully in a timely and cost effective
manner. Early notification of challenges encountered along with recommendations for
correction is designed to help the development process.
3. Existing Heating System Risks:
a. Proposal incorporates existing hot water baseboard heating system. The old fuel oil fired
boiler system will be decommissioned. Baseboard heating system will need to be checked
to ensure reliability of system is adequate to utilize the new system.
4. EPC Contracts/Agreements Risks:
a. Entering contracts has inherent risks in regard to defining the scope of work required,
ensuring workman-like quality, on budget and within periods defined. Using a variety of
consultants to review and check each contract is the preferred method to be used prior to
entering any agreements. Inclusion of a Biomass Plant Engineer, financial consultant, and
an attorney will help with this process. In case of any errors or omissions, contracts
entered with this level of participation is likely to include the necessary protections
needed to complete the project.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
5. Proposed System Design: Construction and Commissioning Risks:
a. Choosing the right size biomass boiler system for this effort is key to the success of the
project. The larger the project, the greater “economy-of-scale” and profitability. Project
size is limited by fuel supply and demand for hot water produced.
b. Major Equipment Delivered risks pertains to the order and successful transport of the
equipment. Intended order is from a reliable source at a known cost. Transport is more
the risk factor. Therefore, only transport companies that have insurance policies for loss
and damage would be used.
c. Site Work and Installation and Construction Risks:
i. Necessary construction insurance will be required of any personnel or contractor
that will have access to the site.
ii. All necessary precautions to maintain site safety will be made and maintained
along with mandatory safety training.
d. Commissioning Risks:
i. Testing for construction and operation integrity is designed to ensure successful
operation and good workmanship before completion of project.
ii. The technology manufacturer of biomass technology, in general, guarantees their
work for up to one-year. Careful selection of the manufacturer is essential and
will be the responsibility of the Plant Design Engineer. In addition to the
guarantee and assurances, Phase IV tasks include testing the technology, training
of local personnel, and establishment of a long-term relationship with the
manufacturer to provide technical assistance and provide scheduled annual
maintenance. Phase IV proposes a period of technical assistance be maintained
with the Plant Design Engineer to ensure technological operating success.
6. Staffing Plan Risks:
a. Implementation of training program requires finding willing participants within the
community and that task would be the responsibility of Port Graham Village Council to
recruit and retain staff to ensure sustainable project operations.
b. Technology training by the manufacture will be included in the project and an ongoing
coordination and training will be maintained between the manufacturer and the tribe.
7. Project Cost Risks:
a. Engineered construction design will more accurately identify project costs. Project
Manager and oversight by Biomass Plant Engineer will manage costs and resolve
problems that may arise that affect project costs.
b. Purchase of technology and contracts let will include standard contract language to
ensure accuracy and control of project costs. Project equipment will include guarantees.
Construction will include use of bonded contractors, if using non-tribal businesses.
8. Environmental Risks:
a. Necessary environmental related permits will have been obtained prior to construction
during Phase III tasks.
b. Best practices will be followed by the Project Managers and required of all contractors
related to environmental protection.
c. In the event of an environmental damage, the appropriate agencies will be immediately
notified. A plan of correction will be submitted to the relevant agencies and followed
upon approval of plan.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
9. Permitting Risks:
a. Permitting required prior to construction is planned for Phase III of project and is
currently underway. However, if one or more of the permitting processes extends into the
construction period, a contingency plan of action will address and seek to remedy to
obtain the necessary permits. This is an area that could affect project costs and is a prime
focus of the Project Manager to ensure the necessary permitting is obtained prior to
planned Phase IV construction.
b. Permit compliance will be monitored and reported as required for each permitting
agency. Project Manager will immediately notify the relevant agency if any compliance
issue arises. A plan to address any deficiencies will be submitted to the relevant agency
and upon approval, followed.
10. Analysis and Recommendation Risks:
a. Project milestones will be tracked and reported by the Project Manager. Deviations from
project milestones will be reported and plans of action will be made to bring project up to
date.
b. Analysis and recommendations will be used to ensure project is completed on time, at
cost, and operationally functional. Situations that may arise during this period, based on
analysis during the project, will be planned and implemented to meet completion.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA.
• The level of information will vary according to phase(s) of the project you propose to undertake
with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a plan and grant
budget form for completion of each phase.
• 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.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
4.1 Extent and amount of energy resource available
Forest Inventory Data. Chugachmiut Forestry program maintains forest inventory data from the Native
Allotments in the Port Graham vicinity and for the Port Graham Corporation land. This includes forest
data recorded in a Geographic Information System (GIS). Detailed timber typing has been completed for
all Native Allotments in the area and basic timber typing has been completed for Port Graham Corporation
lands.
Readily Accessible Fuel Source on Adjacent Lands. Chugachmiut’s GIS and forest inventory data
identifies readily accessible Native Allotments near Port Graham that contain approximately 4,025 acres
of over-mature Sitka spruce forest, containing 98 bone-dry tons (BDT) per acre.
Port Graham Village Corporation completed a forest stewardship plan4 for its entire 107,360 acre
ownership, which recommends harvest of the over-mature Sitka spruce forests on 10,640 of its acres that
now contains a log-haul access road accessible to these lands. Field inventories for additional Native
Allotments and Port Graham Corporation Lands will be completed during the 2011 field season. See the
maps and resources appendix.
Demonstrated Sustainability. The GARN Boiler system will require 101 BDT per year of log fuel. Using
conservative estimates Port Graham Corporation and Native Allotments lands together can sustainably
provide orders of magnitude more fuel than required for the proposed GARN Boiler project. See the
attached maps and resources appendix for further information regarding available timber lands.
Fuel extraction. Fuel extraction will be overseen by the Port Graham Corporation. A 2-3 man crew can
easily extract the 101 BDT/ required for the GARN Boiler system in a 7-8 month operation period.
Pros and Cons proposed energy resource versus other alternatives
The following section looks at other renewable energy propagation systems and their suitability to create
the desired heat and power for Port Graham and neighboring communities of Nanwalek and Seldovia,
Alaska. This project proposes use a GARN boiler system while other proven renewable energy projects
exist and some of those are presented below. New emerging technologies are not addressed because
seeking funding for un-proven systems is generally not allowed in funding proposals.
1. State of Alaska has proposed that wood heat is the only cost effective alternative use of woody
biomass. It is certainly estimated to be the most cost effective. Native Allotments and the Port Graham
corporation land can sustainably and cost effectively supply orders of magnitude more fuel than
required to operate the proposed GARN boiler system which will reduce heating bills, provide
employment opportunities, and create a small scale local timber market for landowners to generate
income.
2. Many sites across Alaska and elsewhere prefer development of wind power technology. Although
wind source studies have not been conducted in the area, general observations are that wind is
intermittent, variable, and tends to gust during fall to early spring. By study, intermittent winds are not
reliable sources of power to the extent that State of Alaska generally proposes wind power backed by
diesel power generation. It is assumed that wind tower generation has a higher capital investment that
the woody biomass project proposed. However, if the upgraded powerline is installed, adding more
power through wind generation to the grid system and local use could make economic sense. Woody
biomass power generation has shown reliable at sustained loads for 11-months, 2-weeks out of each
year. Wind generation in comparison cannot demonstrate such reliability except in steady wind
locations. HEA says they would have load balancing problems associated with wind power. Current
thinking in use of wind technology is to direct excess power to heating water storage systems and
using diesel power or battery storage during low wind periods. Port Graham’s U-shaped valley and
4 “A Forest Stewardship Plan for Port Graham Corporation Lands on the Kenai Peninsula, Southcentral Alaska”
1996 prepared by Walter Meganack Jr. and Jon J Hall & Arvid J. Hall Taiga Resource Consultants Girdwood, AK
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
variable and turbulent wind may cause maintenance problems for wind towers. If these wind towers
were of 1-megawatt power generation size or larger, then repair and maintenance of these towers that
requires large equipment and expensive bearings and other maintenance and replacement apparatuses
may become cost prohibitive.
3. Hydropower is a reasonable alternative except for capital cost for development. There was a U. S.
Forest Service sponsored study conducted north of Port Graham Bay on a small stream for
hydroelectric development. Power output was undetermined although assumed would have small scale
power but cost was estimated at $7 million in 1988 dollars without power line or road access
development.
4. In stream generation and tidal power projects is deemed by Port Graham Village Council and are
communities to risky to salmon fish stocks that venture into Cook Inlet and into Port Graham’s and
English Bay Rivers. Community has expressed concern for their subsistence and economic resource
impact of possible effects on these stocks by such technology.
5. From Port Graham’s hatchery operation or possible cannery operation fish oil could be derived from
fish waste. Port Graham’s feasibility study covered this option and recommends fish oil be added to
biomass fuel to enhance Btu output of biomass.
6. Port Graham Bay was the original site of the first Russian American coal mine located at Coal Cove
along the north entrance to the bay. The coal is sub-bituminous with a low sulfur content but high
water content. Mineshafts are said to have been flooded by saltwater from under Cook Inlet where the
mineshafts lead. A modern assessment of this resource was made but unclear of how accessible
remaining source and amount of resource could be available.
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.
Currently, Port Graham residents heat their homes and community buildings with expensive diesel oil that
must be barged in which is then sold through the Port Graham Corporation. Heat is generated individually
by home based hot water boilers; a similar arrangement produces heat for the community buildings under
consideration for this project.
Age and efficiency of this equipment varies from home to home and building to building, maintenance is
dependent on itinerant service men, usually provided by the regional housing 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.
There are two existing energy resources supplied to Port Graham and Nanwalek, Alaska. The first is the
single-phase 220-volt electrical power supplied by Homer Electrical Association. The second is the fuel
oil, number 2 diesel, supplied for home and community building heat except for the two schools that use
propane for heat. A brief description, discussion, and impact on these resources are discussed as follows:
Heat is currently supplied by fuel oil obtained by Port Graham Corporation and sold at cost with no
holding costs applied. Port Graham Corporation feels that this is a cost burden that they cannot sustain and
welcome this woody biomass CHP project in hopes that it will displace this burden.
Port Graham school is heated by propane that is barged into the communities. Left over fuel from the end
of a school year is vented into the atmosphere. The Kenai Peninsula Borough School District pays for the
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
propane and delivery to these two communities. The borough would need to be approached to see if they
would be willing to convert to biomass heat and/or power rather than trying to maintain the propane
system.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
The Port Graham Village Biomass Waste Heat Demonstration Project proposes to supply hot
water to several community buildings for heat. Existing systems for the buildings are individual
diesel fuel boilers heating hot water baseboard heat for each building. Proposed system will
displace use of diesel fuel for these buildings and thus reduce the amount of diesel fuel used in
the community. Port Graham Corporation over the past decade has supplied diesel fuel to the
community at cost by not adding a markup for-profit or inventory carrying costs. One unintended
consequence that would need to be monitored is the effect on diesel fuel costs per gallon as a
result of reduction in volume used in the community in regards to current fixed transportation
costs. One fixed transportation cost of note is the barging of the fuel from Homer, Alaska to Port
Graham that is significant and would not reduce because of less fuel hauled to Port Graham if this
project would reduce diesel fuel use because the barge company has a fixed price for delivery to
Port Graham. Also, reducing volume of fuel purchased could affect cost of fuel wholesale price
by fuel distributor. Both of these seeming benefits of using less diesel fuel could increase cost of
diesel fuel in the community by an unknown measure. Port Graham diesel fuel customers are cost
sensitive given their overall level of prosperity and if such change to diesel fuel costs were to
occur would need to be monitored.
Port Graham energy customers would view use of biomass from two seemingly opposite points of
view. The common negative impact is the harvesting of wood because previous timber harvesting
by Port Graham Corporation using a clear-cut style harvest system has left a poor impression on
residents of Port Graham regarding use of biomass resources. The positive viewpoint includes the
creation of local jobs and use of local resources for the benefit of the community. Project
development and operation would need to educate, explain, and demonstrate benefits of the
project seeking support of energy customers and community members.
Project is designed to deliver heat to community buildings and would serve as a demonstration for
use of local biomass as an energy alternative. Residential energy customers that would be in
proximity of proposed project could, at their cost election, tie into the heat loop system. If some
or all of these potential residential customers were incorporated into the proposed project, they
could help reduce costs and be shown to benefit local hire and use of local resources. However, to
tie into the system would be an expense that most of these customers may not elect due to general
economic conditions of most of these potential energy customers.
Whereas the existing system would be displaced it would not be vacated all together, at least until
such time the new system is proven to be feasible both economically and practically. The existing
systems will be needed until such time as a back-up/failsafe due to the remoteness of the
community. The displaced system, although redundant, would make the community buildings and
homes safer. The diesel fired boiler system is compatible with a hot water heat loop system
because of the hot water base board heat used in these buildings require only a zone valve
adaptation. An additional zone valve would be installed to provide an automated system such that
the biomass based hot water system, if it were shut down or not maintaining sufficient heat, the
existing diesel fired system would back-up a building or resident’s heat needs.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
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
4.3 Proposed System
Project intent is to obtain a GARN Boiler and install it at the Port Graham Old Pump House site. A
description of GARN Boiler is provided below.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
Renewable Energy Technology
GARN WHS Features and Benefits
Features
• Integrated Combustion
• Non-Pressurized Thermal Storage
• Double Weld Construction
• Secondary Combustion (Gasification) Chamber
• 5 Pass Heat Exchanger
• Large Insulated Loading Door
• Double Lock Safety Handle
• Hot Water Return (HWR) Dispersion Tube
• Manway Access
• Induced Draft Fan
• Air Cooled Door
• Combustion Air Supplied from Outside
• 30 Years of Proven Technology
Benefits
• Safe and Certified to be Installed Indoors
• No Overnight Loading or Fire Required
• Long Life, Low Maintenance Construction
• Reduced Wood Use
• Low Emissions
• Easy to Load Fuel Chamber
• Cool to the Touch Loading Door
• No Smoke in Your Face when Reloading Fuel
• Easy Maintenance
• Simple Part Replacement
• Anodes with Water Treatment Minimize Corrosion
• Demonstrated Longevity
• Available Electric Backup
GARN WHS Design Schematic
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
• Combustion air is drawn directly from outdoors through an internal air inlet tube (A) to the air distribution
collar (B). The outdoor air is preheated as it travels through the air inlet tube (A) and the air distribution
collar (B). This yields more efficient combustion.
• A compliant seal on the loading door (C) prevents room air from entering the combustion chamber (E). The
loading door is insulated to prevent heat loss and includes an air-cooled heat shield to minimize hot surfaces
near the user.
• Combustion air from the collar (B) flows through upper and lower nozzles (D) into the combustion chamber
(E).
• Additional air from the upper nozzle is mixed with hot gases from primary combustion before entering the
ceramic secondary combustion chamber (F).
• Within the ceramic chamber, smoke, creosote and particulates are burned in a very turbulent, horizontal
gasification process at temperatures near and above 2000 ºF.
• After exiting the secondary combustion chamber, the hot gases are drawn through a 5-pass tubular heat
exchanger (G) transferring their heat to the water in the tank.
• The cooled gases are then drawn into the Draft Inducer Fan (H) and pushed out of the exhaust pipe (I) at
temperatures less than 350 ºF.
GARN WHS Technical Specifications
Model WHS 1500 WHS 2000 WHS 3200
Width in Inches 72" 72" 86"
Height in Inches 77" 77" 93"
Overall Length in Inches 117" 141" 187"
Recommended wood Length 24"-32" 24"-32" 32"-48"
Approx. Weight Empty in Pounds 3200 3700 7500
Approx. Weight Filled in Pounds 15,400 19,000 34,500
Approx. Storage in Gallons 1,420 1,825 3,200
Firebox Length in Inches 41" 41" 50"
Firebox Diameter in Inches 25" 25" 40"
Btu's Stored (120°-200°) 920,000 1,272,000 2,064,000
Btu/hr Burn Rate* 350,000 425,000 925,000
Btu's/degree of Water Temp Rise 11,500 15,900 25,800
*Burn rate is based upon lab testing utilizing White Oak, 24 inch length, 25% moisture content fuel, and reloading once per
hour. Burn rate will vary with wood type, moisture content, size and reloading frequency. The burn rate IS NOT THE BTU
OUTPUT. The max output is approximately the burn rate multiplied by the efficiency which is 75% for all WHS units.
Anticipated Barriers
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
The GARN Boiler was chosen because it is a proven system in Alaska for both reliability and ease of operation.
Therefore, reticence by Port Graham Village Council is not anticipated in those areas. The change of ease of
operation from oil fired boilers to wood fired boilers requires more effort. This change would require more time
and effort on the Tribal Council’s part to ensure timely and continued operation. Periodic maintenance is already
a normal activity of heating units within the community and is would be a normal part of operations.
Integration Concepts
Change to more involved operation by the Tribal Council was described in above in the Anticipated Barriers
section. Design includes community buildings to be integrated through the use of heat loop delivery system,
which will develop a sense of coordination and cooperation among building owners who are connected to the
system.
Delivery Systems
The designed heat loop will serve as the delivery system. Each building will have a zone valve system to regulate
heating requirements.
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.
Landownership will be maintained by the Port Graham Village Council and will not involve private landowners
for the Boiler Facility and the majority of the buildings included in this project. The Port Graham
Museum/HeadStart Center and Port Graham Corp Office is owned by the Corporation. Both have agreed that
there are no outstanding issues related to this project.
Port Graham Corporation timberlands would be the main supply for the biomass fuel resource. Port Graham
Corporation has indicated that they are willing to negotiate a fuel source agreement. Native allotment owners
would need to be approached regarding negotiating a fuel source agreement. Chugachmiut’s Realty and Forestry
Programs are charged with serving Native allotment owners in Port Graham and Nanwalek and will be asked to
provide assistance to these owners. Some may wish to participate and some may not wish to participate.
All landowners in the area will need to be provided more information prior to entering into negotiations. For
willing landowners such as Port Graham Corporation, a biomass timber cruise will be conducted to more
accurately measure available woody biomass supply. Chugachmiut will conduct a similar biomass cruise on
willing biomass Native allotment lands. A biomass fuel source extraction plan is intended to be developed in
Phase III tasks that will be placed into a forest management plan for each landowner. For Native allotment
owners the forest management plan will be incorporated into one document. Once an accurate assessment of fuel
is done, the amount and location of the fuel source extraction plan will be presented to the landowners. Stumpage
price will also need to be negotiated and is explained in Section 4.1 of this RFA.
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
A list of possible permits needed and environmental concerns is supplied below.
• DEC emissions permit, if applicable. However, it is anticipated emissions will not be of an amount or
volume that would require a permit although a new emissions standard proposed by EPA may require
this permit.
• A Coastal Management Permit may be required, especially if effluent were to be run into Port Graham
Bay.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
• U. S. Fish and Wildlife Permits for Taking of Endangered Species may not be required because nesting
sites are not located near the proposed site location.
• NEPA assessment is not required except for timber harvesting on Native Allotments. The NEPA
documentation is being completed on a programmatic level as part of the Native Allotment Forest
Management Plan (NA-FMP)
• The Alaska Forest Resources and Practices Act must be followed for timber harvesting operations greater
than 10 acres. This includes filling and detailed plan of operations (DOP) with Alaska Division of
Forestry and receiving their approval before beginning operations. It is not anticipated that harvesting
will be larger than 10 acres as a 7 acre harvest will provide more than enough fuel for one year of
operation
• Obtaining section 404 permits from Alaska Fish and Game for all stream crossings as part of timber
harvesting operations.
• Kenai Peninsula Borough would need to conduct a tax assessment of site chosen and project
development business.
• State of Alaska would require filing of a business license and declaration of the type of business
developed that would own and operate this independent biomass plant.
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
A preliminary National Environmental Protection Act (NEPA) assessment was made in the Port Graham biomass
feasibility study. This proposal intends to include development of a more detailed NEPA assessment and
environmental operation plan for the development and operation of the biomass plant. For the issues outlined in
Section 4.3.4 Environmental, a description and discussion of how these will be addressed follows below.
• Habitat issues
o Currently no habitat issues are located within either preferred project site. If water withdrawals
are to occur from a stream, a Fish Habitat Permit must be obtained from Alaska Department of
Fish and Game. Any wastewater discharge will require permitting from the Alaska Department
of Environmental Conservation.
• Wetlands and other protected areas
o The project locations are not in any special habitat or wetlands locations and will be greater than
100 feet in distance from any wetlands so no additional permitting is needed. If the project site
were to fall within a wetland a section 404 permit from the US Army Corps of Engineers would
be required.
• Archaeological and historical resources
o There are no known archaeological and historical resources located on the project site but the
Alaska Costal management Program Standard 6 AAC 80.150 would apply to the project.
o Once development begins, if artifacts or other culture evidence is encountered during any phase
of the project work shall be stopped. The State historic Preservation Office and the Port Graham
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
Village Council would be notified. Only after documentation and appropriate mitigation
measures are approved would the project commence.
• Land development constraints
o The sitting and approval of major industrial facilities and related activities are subject to State
Standards 6 AAC 80.070(b).
o The site of the project lies within the Alaska Costal Management Zone and more specifically
within the Port Graham and Nanwalek AMSA. State Standards 6 AAC 80.040 would apply to
our project activities and the project must pass the Costal Consistency Review Process.
o A Kenai Peninsula Borough Floodplain Development Permit will be required if the project
location lies within the Port Graham mapped flood plane
o A State building permit will be required from the State Fire Marshal
• Aviation considerations
o The project location is near the current Port Graham Airport so air quality and building
specification will need to be within the Federal Aviation Administration’s regulations. The site
located at the end of the runway could not operate until the construction of the new airport is
completed. The other site is located 300 feet away from the current airport.
• Visual, aesthetics impacts
o The project location is in and near Port Graham so we do not anticipate any adverse visual or
aesthetic impacts except acceptance by community members. The location of the log sort yard
has been used, as a log‐sorting yard in the past so no further negative visual or aesthetic impacts
will occur. Emissions from the biomass facility could negatively affect visual or aesthetics in the
area but the project is required to meet Alaska State Code and EPA emissions requirements.
These regulations limit emission requirements will likely be met by the GARN technology and
not affect visual aesthetics. Therefore, we do not anticipate any negative visual or aesthetic
impacts from the project.
• 18 AAC 50.010. Ambient Air Quality Standards
• 18 AAC 50.015. Air Quality Designations, Classifications, and Control Regions
• 18 AAC 50.055. Industrial Processes and Fuel‐Burning Equipment
• 18 AAC 50.075. Wood‐Fired Heating Device Visible Emission Standards
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and any previous
work the applicant may have done on the project. Applicants must reference the source of their cost data. For
example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of the project. Cost
information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds – loans, capital contributions, in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section.
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.)
Operational and Maintenance costs during this demonstration project are expected to be minimal.
Cutting, hauling and stoking the boiler are the primary operating costs associated with this project.
Maintenance will be also at a minimum due to these GARN boilers will be brand new and covered
under the manufacturers warranty for the length of the demonstration period.
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
Power purchase/sale agreement has been scheduled for March 2012 to June 2012 as shown in Alaska Energy
Authority’s Alsaka Energy Authority Grant Agreement Number 7040061 dated July 1, 2011 to December 31,
2012. Heat Purchase Agreement will be developed in accordance with regulatory requirements governing rural
utilities in Alaska. Identified buyer of biomass generated heat are Port Graham Village Council and Port Graham
Village Corporation as primary customers. North Pacific Housing Authority and adjacent to the project
homeowners have expressed an interest in connecting the project. Customers will be identified at completion of
the Phase III purchase/sale agreement.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in evaluating the
project.
Please find the Project Cost/Benefit Worksheet attached to this application. We have also included an excerpt
from The Potential For Biomass District Energy Production in Chugachmiut Communities, conducted in 2007 by
the Energy & Environmental Research Center of the University of North Dakota. A 7Mb copy of the final report
has been included in the electronic CD version of this application.
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 (gal and $) 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
See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
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
Sustainability is the core rationale for Port Graham’s drive to plan, develop and operate this proposed Port
Graham Village Biomass Waste Heat facility. Sustainability for its own community and through sharing their
success with its neighboring communities. In order for the community to be sustainable, the Port Graham Village
Biomass Waste Heat Demonstration Project too must be sustainable. Listed here are Port Graham’s plans for a
sustainable Biomass CHP facility.
Port Graham Village Council plans to develop a separate entity to own and operate this biomass independent heat
producer. Working with the finance team, we will determine within six months if this entity should be a non or
for profit. If the independent entity is a for-profit organization, it would then be able to take advantage of any tax
credits available and use depreciation that may make developing this project more economically viable. If grant
funding were not available for down payment of the project, then using a combined relationship of a tax credit
investor along with a not-for-profit business entity may make better financial sense. Such arrangements allow for
what is called a “flip” of ownership, where the entity who has been taking advantage of the tax benefits ends, and
then sells and turns over the operation to a long-term entity to own and operate, which would be an entity formed
and owned by Port Graham Village Council.
Finance of the maintenance and operations for the life of the project would be through collection of fees from
Port Graham consumers.
Operational issues that could arise include operation of the technology, personnel trained and hired for the
operation and fuel source production process, fuel source supply issues, cost issues related to inflation,
permitting, and compliance issues. Technology issues are those that shut down or reduce the production of the
power intended to be produced because of mechanical or electronic breakdowns or dysfunctions that reduce
operating efficiencies. Personnel trained and hired to operate the biomass system need to develop procedural
systems that ensure maintenance and operations function efficiently. Retaining such personnel could be an
ongoing issue that may require training additional potential employees for absences and turnover for the life of
the project. The purpose of fuel source agreements with landowners is to ensure a sustainable supply of biomass
fuel that also recognizes that the landowners should receive increased stumpage fees over time to keep up with
inflation. If Port Graham Corporation, for example, feels that they have a higher and better use for their woody
biomass, they may wish to change or back out of a long-term agreement, which would be very problematic for
the continued operation of the project. Inflation cost issues relate to borough taxation, labor cost price increases,
maintenance and repair costs, and other costs related to cost inflation over the life of the project. Regulatory
compliance and permitting issues could change over the period of the project that may require upgrades to the
technology to meet these requirements. Fuel source production may experience changes in requirements that may
drive up the cost of production. Each of these issues needs to be planned for and contingency responses
developed to ensure continued successful operation.
Port Graham Village Council will ensure its utility entity will report annually it savings and benefits to its
customers, stakeholders, and to the council.
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.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
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.
Mentioned in Section 2.3 of this proposal, Alaska Energy Authority funded Port Graham Village Council a
Phase III Alaska Energy Authority Grant Agreement, Grant Agreement Number 7040061, for the Port
Graham Biomass Waste Heat Demo Project, July 2, 2011 to December 31, 2012. This Phase III
development project has just begun as the notification of the award was August 1, 2011.
Port Graham, along with Chugachmiut, has been taking steps on this project since 2005 when it developed
its initial Integrated Resource Management Plan5 (IRMP) for the U. S. Bureau of Indian Affairs. The
IRMP included development of a renewable biomass development project as a priority development. After
BIA’s review of the IRMP and having reviewed the U. S. Department of Energy feasibility plan for
biomass power production (described in the next paragraph), the Office of Indian Energy and Economic
Development has tentatively offered a loan guarantee for a larger project of this type. This loan guarantee
component is critically needed to leverage future AEA grant funding to complete development of this
project once the demonstration project has proven successful. Following are the major efforts undertaken
by Port Graham to advance the Port Graham Village Biomass Waste Heat Demonstration Project.
A feasibility study that included a resource assessment was completed July 2007 through funding from U.
S. Department of Energy (DoE) Tribal Energy Program titled The Potential for Biomass District Energy
Production in Port Graham, Alaska feasibility study. This document is included in the CD portion of this
RFA. This Port Graham Biomass CHP Project remains on DoE’s list of projects eligible for development
assistance since the feasibility study was funded by DoE.
Office of Indian Energy and Economic Development funded the Port Graham Capability and Capacity
Assessment to Operate a Tribal Utility grant to conduct an assessment of capacity and capability of the
Port Graham Village Council to develop, staff, and manage a biomass utility business. This assessment
was completed September 30, 2009, and a final report will be submitted in late November 2009. The
Council currently plans to develop a tribally owned for-profit entity to operate the biomass CHP facility.
They may seek an investment / operating partner to capitalize on available tax incentives if a non-profit
operating entity is formed.
Chugachmiut funded a financial feasibility study through T. P. Roche Company for this biomass CHP
project proposal to assess financial feasibility, engineering design, technology selection, and fuel source
extraction at a more detailed level. A conceptual design for the biomass power generating facility was
developed through T. P. Roche by rem Engineer’s Doug Latulippe. Tom Roche developed the financial
feasibility study shown in Section 2.6 Project Budget Summary. Charles Nash and Chugachmiut’s Forester
Nathan Lojewski and Enterprise Director Charles Sink used the Port Graham Biomass Feasibility Study
and data that Chugachmiut already retains to make the fuel source supply assessments and fuel extraction
cost information.
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.
Included in this RFA are copies of letters-of-support from the following entities:
1. Port Graham Village Council Resolution 10-30
5 Integrated Natural Resource Management Plan for Nanwalek and Port Graham, ASCG Incorporate
November 2006 and Integrated Natural Resource Management Plan for Nanwalek and Port Graham
Phase II, Margaret King and Associates, July 2009.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
2. Port Graham Corporation letter-of-intent to reach a fuel source supply agreement
3. Chugachmiut letter of support Port Graham Village Council development project
SECTION 9 – GRANT BUDGET
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.
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
Port Graham Village Council (Council) intends to use a combination of sources to finally bring this
project to reality. Ever since the completion of The Potential for Biomass District Energy Production in
Chugachmiut Communities study completed in 2007 the Council has worked toward this goal, developing
relationships with several entities both public and private, please refer to the attached letters of support
and commitment.
The Council requests the following funds from the listed entities:
Alaska Energy Authority $426,833
In-kind committed funds include:
Chugachmiut $55,395
Port Graham Village Council $3,600
Total Project Costs: $485,829
Direct Labor & Benefits - Port Graham Village Council administrative staff will provide the primary
interface with AEA and all other parties to this project. The three Port Graham staff members associated
with this project will devote 33% of their time to this project from start to finish, fringe benefits are
factored in at 35%. Resumes for all three have been included as part of this application.
• Pat Norman, First Chief
• Francis Norman, Tribal Administrator
• Dana McMullen, Tribal Bookkeeper
This is a large project for Port Graham and will require a large percentage of staff time to accomplish.
Additional funding has been requested under the Contractual Services category for a firm to provide
Project Accounting, training for the Port Graham staff in this area will be included in the scope of work
when this service is solicited, thereby providing Port Graham staff with the ability to sustain this effort
long after this project has been completed.
The Council will also rely upon the proven relationship with Chugachmiut, Inc. to provide technical
assistance throughout this project either through general guidance related to administration of the project;
i.e. report writing and solicitation of consultants and contractors as well as more technically complex
activities such as negotiating loan agreements, permitting and environmental reporting to name a few of
the areas where Chugachmiut staff expertise will be required. It is the intent of the Council to contract
with Chugachmiut to provide this more specific technical assistance where required to meet project
milestones as addressed in this application, such as intermediary support in finalizing the loan agreement
between the lending institution and the Port Graham Village Council prior to the completion of Phase III.
Chugachmiut staff involved with this project will include:
• Charlie Sink, Director, Enterprise and Trust Division
• Nathan Lojewski, Chugachmiut Forestry Manager
• Elmer Moonin, Chugachmiut Project Assistant
It is estimated that, on average, 10% of their time will be spent on this project, from beginning to end.
Chugachmiut staff has a vested interest in seeing this project completed. Charlie Sink has been involved
with this project for over 4 years since the first feasibility study grant was written. Chugachmiut fringe
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 08/25/2011
benefits are figured in at 36%.
Travel & Per Diem - Travel costs are illustrated on the spreadsheet attached to this application. Whereas
many of the meetings will be conducted via telephone between Port Graham staff, Chugachmiut staff and
out of state consultants, there will be a necessity to conduct several meetings in person. The Travel table
shows the number of trips, destination and length in travel status for each traveler. Air fare is based on
current web searches utilizing Travelocity.com and Expedia.com; lodging and per diem costs are based on
published federal rates for the locale.
Equipment - Equipment proposed for this project has been discussed at length throughout this
application. The costs associated with the particular equipment are detailed on the Project Costs
spreadsheet. Only equipment recognized as the standard in this area of power generation has been
considered. Throughout the discussion of this project, brand names are used to represent the level at
which this project wishes to reflect, once the proper technology has been identified, competitive
solicitations will be issued.
Materials & Supplies – The amount requested under this category are necessary to manage a project of
this complexity and are further detailed as sub-categories on the Budget worksheet.
Contractual Services – This category represents the level of expertise Port Graham wishes to bring to
this project. This type project is relatively new to Alaska and therefore experts in this field will be
required to provide the required project services as have been discussed within this document.
A detailed project cost assessment has recently been completed using a contractor, T. P. Roche Company,
whose team includes a biomass project development and financial consultant, a biomass plant design
engineer, and a biomass supply consulting forester. The design engineer provided estimates of capital
investment for the biomass unit, as well as start up, operation and maintenance costs. The forester
provided an estimate of fuel supply harvesting equipment and fuel supply extraction costs. The financial
consultant provided realistic economic projection for development and operation of the proposed project
using information provided by his team and from Port Graham Village Council and Chugachmiut. It is
expected the same level of expertise will be brought into this project.
As mentioned above under the category for Direct Labor, Port Graham will contract with an accounting
firm that is not only competent in the field of Project Accounting, but also have the ability to provide
training to Port Graham staff so they may take over these duties once the project has been completed.
Construction Services – This category addresses the actual preparation of the site, the construction of the
plant and the installation of the equipment. Please refer to the discussion for this category under Phase IV,
Task 4.
Other – The Other category addresses costs necessary to the success of this project such as working
capital and financing fees to prepare the documents that will secure the loan, which BIA has stated they
will guarantee through that agency; Owner’s CM Insurance while the project is under construction; costs
associated with start-up and commissioning the power plant and finally costs to address miscellaneous
unseen costs and contingencies.
To the best of our abilities the costs represented herein and within the included worksheets are reasonable
for a project of this caliber. Application development staff is available to discuss further any issues that
require additional explanation.