HomeMy WebLinkAboutRenewable Energy Fund Round 6 Grant Application_NenanaRenewable Energy Fund Round 6
Grant Application
AEA 13-006 Application Page 1 of 37 7/3/2011
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:
http://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@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.
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Nenana City School District
Type of Entity: K – 12 Public School District Fiscal Year End: June 30
Tax ID # 92-6000107 Tax Status: For-profit or X non-profit ( check one)
Mailing Address
PO Box 10
Nenana, AK 99760
Physical Address
2nd & C Streets
Nenana, AK 99760
Telephone
907.832.5464
Fax
907.832.5625
Email
supt@nenanalynx.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Eric Gebhart
Title
Superintendent
Mailing Address
PO Box 10
Nenana, AK 99760
Telephone
907.832.5464
Fax
907.832.5625
Email
supt@nenanalynx.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2 Attached to this application is formal approval and endorsement for 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. If no please describe the nature of the
project and who will be the primary beneficiaries.
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SECTION 2 – PROJECT SUMMARY
This 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)
Nenana Collaborative Biomass Heating System Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
The project is located in Nenana, Alaska. The collaborative partners in the application for this grant
funding are the Nenana City School District, the City of Nenana, and the Nenana Native Council. All
three entities expect to derive benefit from this project.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map
and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
The location of the Nenana Biomass Heating System Project is Nenana, Alaska (64.564075,-
149.091442).
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The benefitting community will be Nenana, Alaska. The Nenana City School District has taken
the role of lead agency in the application and construction process. Within the community of
Nenana, the City of Nenana, the Nenana Native Council, and the Nenana City School District
have a history of successful, collaborative, working relationships to benefit the citizens of
Nenana and the surrounding area. The Nenana City School District, the City of Nenana, and
the Nenana Native Council have all passed resolutions in support of this community-wide
collaborative project.
The City of Nenana is located on the George Parks Highway in the Interior of Alaska, at the
confluence of the Nenana and Tanana Rivers. The community is approximately 56 miles
southwest of Fairbanks, 304 miles northeast of Anchorage, and 75 miles north
of Denali National Park. The present location of the community and its surrounding area has
been occupied historically by Athabascan Indians. In 1903, Jim Duke built a roadhouse/trading
post at this location to serve travelers on the Tanana River. Nenana later became a stopping
point on the Alaska Railroad and the George Parks Highway. Incorporated in 1921, it has a
current population of approximately 500 residents. Nenana is also home of the Nenana Ice
Classic.
The Nenana Native Council is the federally recognized tribal government for the Nenana,
Alaska area and has been operating since 1920. The Native Council currently has 762 tribal
members and the Traditional Council is comprised of nine elected members. The Tribal
members are primarily of Athabascan descent with a mix of other Alaska Native groups. The
village’s name, Nenana, has its origin in the Native word “Nenashna” meaning a “good place to
camp between rivers”. Nenana offers a rich and vibrant history, tied to its location. The early
Nenana site served as a fish camp and trading center for the Athabascan people of the area.
Subsistence hunting, fishing, and gathering activities are very important to the people of the
village.
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The Nenana City School District serves approximately 200 K-12 students at the Nenana City
Public School and approximately 700 correspondence students through the CyberLynx K-12
program, with satellite offices in Anchorage, Fairbanks, and Wasilla. The Nenana Student Living
Center is home to 88 high school students who come from all over Alaska to attend Nenana City
Public School. The Nenana School District is privileged to have an outstanding and experienced
staff and a strong record of academic and vocational education success. Staff take seriously the
mission of providing the best possible education to prepare youth for advancement in today’s
complex world.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind 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 X Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The “Pre-Feasibility Assessment for Integration of Wood-Fired Heating Systems Final Report”
dated July 24, 2012 states that, “Connecting the school with several nearby buildings with a
wood fired district heating system appears to be an economically viable project.” (p. 2 of 13) The
buildings for the City of Nenana include the Water Plant and the Fire Department. The building
included for the Nenana Native Council is the Youth Educational Resource Center (YERC),
which houses the Early Learning, Head Start, and Youth Center programs. The school district
buildings included in the project are the Nenana City Public School, the Administration Building,
the Warehouse/Vocational Education Building, and the Nenana Student Living Center. Though
the Nenana Student Living Center is located approximately six blocks from the Nenana City
Public School, the “Pre-Feasibility Assessment” states, “The additional energy saved by
connecting several buildings together offsets the significant additional cost of underground
piping and pumping costs. . . . Even with the significant piping costs, the extra pumping energy,
and the extra wood fuel needed to offset the heat loss of the long pipe runs, this option remains
the strongest relative to other options.” (p. 2 & 3 of 13)
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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.)
As described in detail throughout this application, and in the Pre-Feasibility Assessment, the
immediate and most obvious benefit is the cost savings to the Nenana City School District, the
City of Nenana, and the Nenana Native Council through the direct reduction of heating costs for
the buildings described in the application. Based on the current economic assumptions from the
Pre-Feasibility Assessment, assuming the project is funded, the school district, city, and Native
Council will save an estimated $127,810 in fuel oil costs annually.
This project will also provide an economic benefit to the Nenana community and surrounding
area. A bridge and road over the Nenana river, which is part of the bond package that will be
voted on in the November 2012 election, will open up the sale of a significant amount of
agricultural land (178,000 acres) west of Nenana. In order to prepare the land for agriculture, it
must first be cleared by the purchasers. A biomass boiler, such as the one proposed in this
application, would allow for the wood that needs to be cleared, to be sold and used for fuel. This
project gives agricultural land purchasers a market for their trees, instead of them simply having
to incur the expense of being cleared and burned on-site.
Toghottele Corporation, a local Native Corporation, owns 138,000 acres of land, most of which
is forested. The corporation is actively managing their land and logging parts of it. They are
purchasing logging equipment, including a chipper. As the likely local supplier of wood to the
boiler, a biomass project in Nenana would help to bring employment opportunities to a local
Nenana corporation and stability and sustainability to the local economy.
The project will also assist in the remediation of the wildfire threat in the Nenana area by
utilizing wood that is removed from forested areas of both private area and State lands in a
strategic manner. This remediation should save State and Federal dollars in the firefighting
effort.
Lastly, this project is a collaborative effort among three entities within the Nenana community.
The previously funded projects researched by local Nenana stakeholders were biomass projects
granted to and built for single entities. The project planners were not able to find an existing
collaborative effort such as the one proposed in this application. Therefore, another project
benefit is that this project will be a successful integrated community effort that will maximize the
efficiency of the central boiler system. This project will benefit the State of Alaska in that it can
be used as a model for other communities as they develop their own collaborative biomass
projects. This model of collaboration will be able to be duplicated, modified, and tailored to meet
the individual and diverse biomass heating needs of any community that desires and has public
entities that cooperate and work closely together.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The Nenana Collaborative Biomass Heating System Project is requesting $466,890.00 from the
Alaska Energy Authority for the purpose of project design development and permitting for a
central biomass boiler to serve the community of Nenana through the collaborative effort as
described throughout this application. In addition to the funds requested from the Alaska Energy
Authority, each of the local partners (The Nenana City School District, the City of Nenana, and
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the Nenana Native Council) will provide an in-kind match to support the design development,
permitting, construction, and commissioning phases of the project. The in-kind match listed on
line 2.7.3 below, will cover matching work related to project design development and
engineering, permitting, preparation of project bid documents, advertising for bids, selection of a
construction contractor, handling of funds, and required reporting. When the collaborative team
submits an application for project construction funds, other cash or in-kind matching funds will
be identified with regard to that phase of the project. The design and permitting funds requested
through this application from the Alaska Energy Authority are also expected to be sufficient to
see the project to completion and commissioning. If a need for additional design funds becomes
evident, the request will be made and necessary documentation provided when the Nenana
Collaborative Biomass Heating System Project submits an application for construction and
commissioning, during the 2013 round of Renewable Energy Fund Grant Applications.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $ 466,890.00
2.7.2 Cash match to be provided $
2.7.3 In-kind match to be provided $ 19,200.00*
2.7.4 Other grant applications not yet approved $
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $
*Additional design and permitting related in-kind hours will be contributed during the
construction phase of the project, along with significant in-kind matching dedicated to
actual project construction. These hours, along with land, material, labor, equipment,
power, and related matching contributions, will be designated in the in-kind match of
Construction Funding application.
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
including estimates through construction)
$3,006,607
2.7.7 Estimated Direct Financial Benefit (Savings) $127,810 in Year 1*
$3,516,725 in Year 16*
2.7.8 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$
*For full annual details, see the Excel spreadsheet on page 20 of this application.
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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.
The Project manager will be Eric Gebhart, Superintendent of Schools for the Nenana City
School District. Mr. Gebhart has a Master's in Education and more than 18 years' experience as
a school leader/administrator. He is an experienced superintendent, principal and educator and
has overseen the implementation of numerous successful education-enhancement programs
and initiatives and several large scale construction projects in the school districts in which he
has worked. Mr. Gebhart was appointed to the Governor's Council on Disabilities and Special
Education in 2007. He served the Council as Vice Chair from July 2009 to June 2011 and
currently serves as Council Chair. His term will expire in June 2013. Mr. Gebhart will coordinate
the stages of the project and adhere to project timelines. He will facilitate proper communication
between the school district, City of Nenana, the Nenana Native Council, and the chosen design
and engineering firms, while ensuring timely communication and reporting to the Alaska Energy
Authority. Mr. Gebhart’s resume is attached to this application.
Eric Gebhart, Superintendent
Nenana City School District
PO Box 10
Nenana, AK 99760
Work Phone: (907) 832-5464
Work Fax: (907) 832-5625
E-mail: supt@nenanalynx.org
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
Project scoping and contractor
solicitation for planning and design
AEA Grant Funding Approved
AEA Grant Agreement/Paperwork signed
Solicitation of qualified
design/engineering development firm
Review and selection of qualified firm
June
1
2013
July
31
2013
Permit applications (as needed)
Submit federal permit application(s), if
required
Sept.
1
2013
Nov.
1
2013
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Final environmental assessment
and mitigation plans (as needed)
Determine what, if any, environmental
assessment is required
If required, complete environmental
assessment
If required, development and implement
any mitigation plans
N/A
N/A
Resolution of land use, right of
way issues
Determine site location
Determine piping paths
Resolve any right of way issues
Aug.
1
2013
Oct.
1
2013
Permit approvals
Resolve any federal permitting issues
with appropriate agency
Obtain federal permit approvals
Sept.
1
2013
Nov.
1
2013
Final system design
Develop and review preliminary designs
for building, boiler, and piping system
Comment and revise preliminary designs
Approve final system design
Fire Marshal Approval
Aug.
1
2013
Dec.
1
2013
Engineers cost estimate
Submit final system design to engineers
for cost estimate
Obtain engineers cost estimate
Dec.
1
2013
Dec
15
2013
Updated economic and financial
analysis
Perform updated economic and financial
analysis
Nov.
1
2013
Dec
31
2013
Negotiated power sales
agreements with approved rates
Determine which entity or what
administrative structure the collaborative
partners will use to operate the biomass
plant and distribution network
Develop and sign agreements that
designate the percentage each
collaborative partner will pay for the
biomass fuel and the operational and
maintenance costs of the boiler, building,
and piping structure.
Aug.
1
2013
Dec.
1
2013
Final business and operational
plan
Develop a “draft” plan
Submit the plan to the collaborative
partners and the public for comment
Approve final business and operational
plan
Sept.
15
2013
Dec.
31
2013
Confirm that all design and
feasibility requirements are
complete
Internal review of design and feasibility
documents and requirements
Submit design and feasibility documents
to AEA
Resolve any issues and receive
confirmation from AEA that all
requirements are complete
TBD
TBD
TBD
TBD
TBD
TBD
Completion of bid documents
Develop bid documents and perform an
internal review of the documents
Submit the bid documents to AEA for
approval
Obtain approval from AEA and advertise
for bids
TBD
TBD
TBD
TBD
TBD
TBD
Construction/Vendor selection and
award
Review bid proposals and bid amount
Select contractor based on bids received
Notification of bid award
Begin bid dispute period
Give winning contractor “Notice to TBD TBD
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Proceed”
Supervise Construction Phase
Supervise construction of all phases of
the project design
Answer/resolve design and engineering
questions/issues TBD TBD
Supervise Integration and Testing
Phase
Inspect construction of the building,
boiler, and piping system
Supervise/observe the testing of the
boiler and piping system
Develop “Punch list” TBD TBD
Supervise final acceptance,
commissioning, and start-up
Inspect and sign-off that punch list items
are completed
Sign-off that construction of building,
boiler, and piping system is complete
and operational as designed. TBD TBD
3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partnerships or commitments
with other entities you have or anticipate will be needed to complete your project. Describe any
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
Personnel: Professional design and engineering services will be determined through a
competitive request for qualifications. Firm(s) with successful experience in the design,
engineering, permitting, and construction of integrated wood-fired heating systems in schools
and/or other public facilities will be selected.
Contractors: These will be determined through a competitive bid process and managed by the
Project Manager with technical assistance from the professional design firm.
Accounting/Bookkeeping Personnel: Accounting and bookkeeping for the project will be handled
by Carl Horn, Business Manager for the Nenana City School District. Mr. Horn will ensure fiscal
accountability and transparency, monitor budgets and expenditures, and prepare required
financial reports. His resume is attached to this application.
Equipment: The need for heavy equipment during the “Design and Permitting” phases is not
expected. However, if a need were to develop for particular equipment, the Project Manager will
be able to facilitate the use of equipment owned by the Nenana City School District or the City
of Nenana. If the school district or city does not own the required equipment, the Project
Manager will assist in obtaining rental equipment from Fairbanks, Alaska, approximately 50
miles to the north.
Services: Through the professional design and engineering firm(s), professional cost-estimating
services will be utilized to facilitate optimal design and engineering decisions, estimate final
construction costs, and update and finalize the economic and financial analysis.
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3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Please provide an alternative contact person and their contact information.
A project communications plan will be developed as part of the project, and all project entities
(Nenana City School District, City of Nenana, Nenana Native Council, Alaska Energy Authority)
and professionals (designers, engineers, consultants, etc.) will be briefed on the plan.
Communications will be the primary responsibility of the Project Manager, who will work closely
with the project’s collaborative partners, designers, engineers, and consultants to accomplish
project milestones, meet timelines, and troubleshoot issues. The Project Manager with ensure
compliance with all communication and reporting requirements of the Alaska Energy Authority.
Locally, project updates will be shared with the Nenana community at the combined City, Native
Council, and School Board meetings which happen twice each year and at individual City,
Native Council, and School Board meetings at the request of the entities. For communication
purposes with the Alaska Energy Authority, the alternate contact person will be Nenana City
Mayor, Jason Mayrand. His contact information is below:
Jason Mayrand, Mayor
City of Nenana
PO Box 70
Nenana, AK 99760
Phone: (907) 832-5501
Fax: (907) 832-5503
E-Mail: nenana1@nenana.net
3.5 Project Risk
Discuss potential problems and how you would address them.
The Nenana Collaborative Biomass Heating System Project has maintained a deliberate
approach with the intent of ensuring that the project would be both feasible and viable, and
through this sound process, minimize risk. However, not all circumstances can be foreseen and
until the project work begins, and design documents and the appropriate calculations and
research are done, not all circumstances will be known. Potential problems and how they would
be addressed are below:
The Pre-Feasibility Study identified an “existing gravel parking lot west of the
Administration building” (p. 9 of 13) as a potential location for the central heating plant. In
the event that this area turns out not to be a suitable location, the Project Director has
already identified two other potential locations that are centrally located, with access
from three adjacent streets.
Though no known conflicts are evident at this point in the planning, potential conflicts in
the underground pipe routing system may need to be resolved. The collaborative
relationship between the project partners and the relative openness and simplicity of the
platting in Nenana will allow for viable resolutions to underground piping conflicts.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to undertake with
grant funds.
If some work has already been completed on your project and you are requesting funding for an advanced
phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an
advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the
market to be served by your project. For pre-construction applications, describe the resource to the extent known.
For design and permitting or construction projects, please provide feasibility documents, design documents, and
permitting documents (if applicable) as attachments to this application.
The types of wood fuel available in the Nenana area include cord wood, wood pellets, and chipped wood fuel. The
estimated amount of wood fuel needed, of each wood fuel type, for the proposed project, can be found in the chart
below.
Fuel Oil (Gallons) Cord Wood (Cords) Wood Pellets (Tons) Chipped Wood (Tons)
87,800
767.3
699.5
1037.3
The amount of wood fuel shown in the table above is for offsetting 85% of the total fuel oil use in the proposed
project buildings. The Pre-Feasibility Study incorporated the moisture content of the wood fuels and the wood
burning system efficiencies in the above calculations.
Toghotthele Corporation, Nenana’s local Native Corporation, owns 138,000 acres of land and most of it is forested.
There are also state owned lands in the Nenana area. Over the past several years, wild fires have created a desire
in the area to thin the forests in the Nenana basin to create fire breaks. There are large tracts of land west of
Nenana that are planned to be open for agricultural development in the next few years. These lands, which contain
a significant amount of wood, will need to be deforested in order to be available for agriculture. There are currently
178,000 acres of land in the agricultural project. The Pre-Feasibility Study states, “There appears to be a sufficient
supply of wood fuel to support a wood fired boiler for this campus.” (p. 9 of 13)
Due to the abundance of forests surrounding Nenana, chipped wood appears to be the best wood fuel energy
source for this project. Toghotthele Corporation is actively managing their land and currently logging in some areas.
The corporation has also purchased a chipper. Should this project be approved, Toghotthele Corporation would
likely be the entity to provide the project with wood fuel.
An alternative wood fuel source would be wood pellets from Superior Pellet Fuels, out of North Pole, Alaska.
However, the cost of trucking pellets down the Parks Highway from North Pole to Nenana does not appear to be as
economically feasible as utilizing local wood fuels from the sources described above.
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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.
The Nenana City School District is responsible for the main city school building, the administration building, the
warehouse facility, and the Nenana Student Living Center. The City of Nenana is responsible for the water plant
and fire department. The Nenana Native Council is responsible for the Youth Education Resource Center (YERC
or Day Care as listed in the Pre-Feasibility Study).
The main school building is approximately 70,860 square feet in size. The original construction was done in 1955,
with additions in 1966, 1972 (Gym), and 1986. There are two boiler rooms in the main school facility, one located
in the original structure and one located in the gymnasium section of the building. In a major mechanical system
retrofit, completed approximately 15 years ago, new heating water mains were installed throughout the facility,
and the boilers were piped to provide heat to this main loop. Therefore, any single boiler can provide heat for the
entire facility. The boiler room located in the original structure, houses two 2,503,000 Btu/hr output hot water, fuel
oil fired boilers. These boilers are in good condition, about 15 years old. The boiler room in the gymnasium
houses two 950,000 Btu/hr output hot water boilers. These fuel oil fired boilers were installed in 1972 and are in
fair condition. Each boiler room also has a large 500 gallon indirect domestic hot water heater, which uses boiler
water as their heating source.
The Administration Building, constructed in 2005 is approximately 2,480 square feet. This building is heated by a
single 196,000 Btu/hr output hot water boiler. Both the fuel oil fired boiler and the heating system infrastructure of
this building are in good condition.
The 6,500 square foot warehouse facility was constructed in 1982. The building is heated by two hot water boilers
and the heating system infrastructure is in fair condition. One fuel oil fired boiler is new, installed approximately
one year ago. It is a 212,000 Btu/hr output hot water boiler. One of the original fuel oil fired boilers remains in
service. It is a 236,000 Btu/hr output hot water boiler in fair to poor condition. In the warehouse, domestic hot
water is provided by a 30 gallon electric water heater rated at 5.5 KW input.
The Nenana Student Living Center is a 32,700 square foot dormitory facility constructed in 2001. Heat is currently
provided by a single, original 1,372,000 Btu/hr output hot water, fuel oil fired boiler in good to fair condition. The
heating system infrastructure is in good condition. Domestic hot water is provided by a 623,000 Btu/hr fuel oil
fired hot water heater with an 85 gallon storage tank. Since the purpose of this facility is to house high school
students during the school year, the existing single boiler system puts the students and staff at-risk in the event of
a prolonged outage, particularly during the cold winter months.
The Nenana City Water Plant facility is approximately 5000 square feet and was constructed in the mid 1970’s.
The building houses the equipment required to store, heat, and pump the community water system. The existing
boiler, a 1,110,000 Btu/hr output hot water, fuel oil fired boiler, is original, installed at construction and in fair
condition. The heating system infrastructure is also original and in fair condition.
The Nenana Fire Department building is an approximate 4,000 square foot facility constructed in the early 1980’s.
It is heated by two 272,000 Btu/hr output hot water boilers. These fuel oil fired boilers are approximately nine
years old and in good condition. The heating system infrastructure is original to the building and in fair condition.
Domestic hot water is provided by a 40 gallon electric hot water heater rated at 4.5 KW input.
The Youth Education Resource Center (YERC), noted in the Pre-Feasibility Study as the Nenana Native Council
Day Care, is a 6,500 square foot facility constructed in 2006. Heat for the building is provided by a 347,000 Btu/hr
output hot water, fuel oil fired boiler. Domestic hot water is provided by a 120 gallon indirect hot water heater
using boiler water as a heating source. The boiler and heating system infrastructure are both in good condition.
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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.
Annual fuel use summaries for the seven project facilities are outlined in the chart below.
Annual Fuel Use Summary
Facility Name
Fuel Type
Avg. Use
(Gallons)
Current
Cost/Gallon
Annual Cost
Nenana City
School
Fuel Oil
34,000
$3.60
$122,400
Administration
Building
Fuel Oil
1,600
$3.60
$5,760
Warehouse
Fuel Oil
4,200
$3.60
$15,120
Nenana Student
Living Center
Fuel Oil
28,800
$3.60
$103,680
Nenana Native
Council Day
Care
Fuel Oil
4,550
$3.60
$16,380
City Water Plant
Fuel Oil
10,700
$3.60
$38,520
City Fire
Department
Fuel Oil
3,950
$3.60
$14,220
Electrical energy consumption will increase with the installation of the wood fired boiler system due to the
additional power needed for biomass boiler components such as augers, conveyors, draft fans, and other
necessary equipment. The wood fired boiler system will also require additional electrical pumps to integrate
the proposed project boiler system into the existing heating infrastructure systems in each building. In the Pre -
Feasibility study, “The cash flow analysis accounts for the additional electrical energy consumption and reduces
the annual savings accordingly.” (p. 6 of 13)
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
The existing energy use in the Nenana community and surrounding area consists mainly of fuel oil, cordwood,
propane, and electricity. Commercial properties and public facilities are primarily heated with fuel oil, whereas
many area homes use cordwood, with a fuel oil back-up furnace to save on heating costs. Fuel oil will continue to
have a viable market in Nenana for the foreseeable future due to its dependability in cold weather and the need
for back-up systems to alternative fuels such as cordwood or wood fired boilers. Fuel oil is expensive. Through a
bid process, the City of Nenana and the Nenana City School District are able to obtain fuel oil at a rate of
approximately $3.60 per gallon. Area residents and commercial business that do not have the capacity to acquire
a bid rate pay significantly more per gallon.
Propane is not used for heating, but it does find some use in cooking stoves. Propane costs are slightly less than
electricity.
Cordwood has a large market in the Nenana area and is growing rapidly around the entire state for residential
use and some business applications. In Nenana, most households utilize cordwood harvest and store their own
wood fuel. Most cordwood furnaces in use are not efficient and create a significant amount of smoke.
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Wood pellets are a wood fuel available to be delivered by truck from North Pole, Alaska, which is about 70 miles
to the north on the Parks Highway. Shipping wood pellets such a distance is expensive. Though available, there
are no homes, businesses, or public agencies that utilize wood pellets as a bio-fuel source.
Electricity, provided by Golden Valley Electric Association, is utilized for lighting and other such services.
Electricity is not used for heating purposes, except in the case of small, individual space heaters, usually in
residential settings.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address potential system
design, land ownership, permits, 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
According to the Pre-Feasibility Study, “Connecting the school with several nearby buildings with a wood fired
district heating system appears to be an economically viable project.” (p. 13 of 13)
Renewable Energy Technology Specific to Project Location: The Nenana Collaborative Biomass
Heating System Project will use a biomass boiler to help heat the Nenana City Public School, the district’s
administration building, the district’s Warehouse/Vocational Education Center, and the Nenana Student
Living Center. The proposed project biomass boiler will also heat the City of Nenana Water Plant and Fire
Department and the Nenana Native Council Day Care facility. Wood chips will be made from timber
harvested in the region and burned in the boiler to heat water, which will heat all proposed facilities by
circulating hot water through connected piping to each building’s existing heating system infrastructure. In
considering the best option for biomass fuel, the project chose wood chips as they are the lowest cost
wood fuel ($/MMBtu) when compared to wood pellets or cordwood. In addition, the boiler system can be
automated to save operational costs once the plant is up and producing, and the project will be able to
utilize local wood resources which will benefit the local economy and assist in good, local forestry
management.
Optimum installed capacity: A chipped wood biomass heating system will be designed to meet
approximately 85% of the typical annual heating energy use of the Nenana Collaborative Biomass
Heating System Project. The existing boilers in each facility would be used for the other 15% of the time
when heating needs are at their peak, when the biomass boiler is down for servicing, or during swing
months when the needed requirement for heating each day is minimal. Based on calculations found on
Table 5.2 – Proposed Biomass Boiler Size of the Pre-Feasibility Study (p. 7 of 13), the Nenana
Collaborative Biomass Heating System Project should have a biomass boiler size of 5879 MBH.
Anticipated capacity factor: From Table 1.3 sited above, the anticipated biomass boiler capacity factor
is 0.6. Unlike a heating plant with a consistent base load, the proposed biomass boiler will be used to heat
several buildings which have a variable load. The amount of heat generated by the proposed biomass
boiler will be directly proportional to the outside air temperature. The biomass boiler capacity factor of 0.6
is significantly better than the existing heating equipment in the facilities it is proposed to replace.
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Anticipated annual generation: From Table 5.2 sited above, the likely system peak of the proposed
biomass boiler system will be 9799 MBH. Based on the total current fuel oil consumption of each project
building, the proposed biomass boiler system is estimated to use 1,037.3 tons of wood chip biomass fuel
each year.
Anticipated barriers: The Pre-Feasibility Study document was formed with anticipated barriers in mind
and addressed those barriers. Additional concerns that will be evaluated and resolved during this project
phase may be in permitting the facility with State and Federal representatives. An additional potential
barrier may be with the installation of the circulation loop heating lines and existing underground utilities,
however this is scheduled to be addressed during the design phase. At this time, no other barriers are
perceived.
Basic integration concept: The integration of the Nenana Collaborative Biomass Heating System Project
system with the existing heating systems will be relatively straightforward in each location. A field visit,
performed as part of the process to complete the Pre-Feasibility Study confirmed the location of each
existing boiler room in order to identify the approximate point of connection from the proposed project
heating loop to each existing building. The study proposes connections “achieved with arctic pipe
extended to the face of each building, and extended up the exterior surface of the building in order to
penetrate the exterior wall into the boiler room. Once hot supply and return piping enters the existing boiler
room it would be connected to existing supply and return lines in appropriate locations in order to utilize
existing pumping systems within each building.” (p. 10 of 13)
Delivery methods: The central boiler structure will pump heated water through a closed loop system
connected to all of the projected facilities. Each facility will contain circulation pumps to assist in the
transmittal of the heated water and each facility will have a meter to record flow rates and pressures.
Delivery systems similar to this are used in Fairbanks as well as nearby military installations. The Nenana
Collaborative Biomass Heating System Project will be constructed similar to any school or public facility
capital project. The building, boiler, and required systems would be designed and engineered by licensed
professionals who will generate construction documents suitable for securing professional bids from
qualified construction contractors. The successful contractor would then mobilize, construct the building,
boiler, piping systems, and all related project work.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend
to approach land ownership and access issues.
The current proposed construction site is on school property located adjacent to the Administration Building.
Should this site not be sufficient or optimal for the biomass boiler facility, two other potential sites have been
identified. One is already owned by the City of Nenana, a collaborative partner, and the other is privately owned.
In the event the privately owned site ends up being the most viable, preliminary discussions with a representative
of the owner indicates an openness to consider trading the land needed for the project with a municipally owned
lot in a different part of the city. The project partners do not foresee any difficulty finding and securing the
necessary and viable property needed to complete the project.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address outstanding permit
issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
List of applicable permits: According to the report provided by Resource Systems Group, Inc. and found
in Appendix D of the Pre-Feasibility Assessment for Integration of Wood-Fired Heating Systems Final
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Report, the Nenana project “will not require an air pollution control permit from the Alaska Department of
Environmental Quality given the boilers’ relatively small size and corresponding quantity of emissions.” (p. 9)
The proposed project will be subject to newly proposed federal requirements under the Federal “Area
Source Rule” (40 CFR 63 JJJJJJ). Though a federal permit is not required, the collaborative partners of
the project will need to perform various record keeping, reporting and operation and maintenance
requirements to demonstrate compliance with the Area Source Rule. Since the proposed changes have
not been finalized, the following requirements remain applicable:
1. Submit initial notification to EPA within 120 days of startup
2. Complete biennial tune ups per EPA method;
3. Submit tune-up forms to EPA
Other permits that will need to be researched and addressed would be State building permits and
approval of the project design by the State Fire Marshal. The City of Nenana does not require city building
permits.
Anticipated permitting timeline: Within 120 days of startup
Identify and discuss other potential barriers: None that the project partners are aware of at this time.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
Threatened or Endangered species: None
Habitat issues: None
Wetlands and other protected areas: None
Archaeological and historical resources: None
Land development constraints: None
Telecommunications interference: The privately owned construction site mentioned above is near a
GCI field station. Should this site become the most viable option, the project partners will need to consult
with GCI to ensure that the proposed project does not interfere with or damage field station
communications or any underground system.
Aviation considerations: The Nenana Airport facility is over eight city blocks to the south. There are no
concerns in this regard.
Visual, aesthetics impacts: None
Identify and discuss other potential barriers: During the design and permitting phase, air dispersion
modeling will be conducted to determine the stack height and degree of emission control. The project
partners are not aware of any other potential barriers at this time.
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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
Total anticipated project cost, and cost for this phase:
Requested grant funding:
Total Anticipated Project Cost: $3,473,497
Cost for the phase (Design & Permitting): $466,890 – Requested grant funding, this application
Applicant matching funds – loans, capital contributions, in-kind:
Applicant matching funds are in-kind in the amount of $19,200*.
City Mayor: 120 hours = $6,600 (salary & benefits)
School Superintendent: 120 hours = $7,800 (salary & benefits)
School Business Manager: 80 hours = $4,800 (salary & benefits)
*Additional design and permitting related in-kind hours will be contributed during the construction phase
of the project, along with significant in-kind matching dedicated to actual project construction. These
hours, along with land/material/labor/equipment/power/etc. will be designated in the in-kind match of
Construction Funding application.
Identification of other funding sources:
Currently, there are no other funding sources under consideration.
Projected capital cost of proposed renewable energy system:
The projected capital cost of the Nenana Collaborative Biomass Heating System Project is $3,006,607.
Projected development cost of proposed renewable energy system:
The projected development cost of the Nenana Collaborative Biomass Heating System Project is
$466,890.
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4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting
requirements for the purpose of reporting impacts of projects on the communities they serve.)
Operating costs will be funded by avoiding the annual fuel oil costs:
Total fuel oil cost 87,800 gals @ $3.60 per gal $ 316,080
Project utilization factor for wood chip boilers 85%
Estimated avoided cost $ 268,668
Annual estimated operating cost
Projected tons of wood chips 1037.3
Fuel cost - wood chips @ $75 per ton $ 77,798.00
Other parts and materials $ 10,000.00
Inspections and contracted repairs $ 7,500.00
Utilities - electric power $ 15,000.00
Insurance $ 4,000.00
Maintenance labor cost wages and benefits
($33.50 x 515 hrs (1/4 FTE) $ 17,252.00
Direct administrative hours
($65 x 40 hrs) $ 2,600.00
Indirect administrative
(accounting, personnel, bookkeeping
and audit @ 5%) $ 6,708.00
Total estimated annual operating cost $ 140,858.00
Projected cost annual cost savings $ 127,810.00
4.4.3 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
Identification of potential power buyer(s)/customer(s):
The power customers for the Nenana Collaborative Biomass Heating System Project are the Nenana
City School District, the City of Nenana, and the Nenana Native Council. Based on current usage, outlined
in Table 1.4 “Annual Wood Fuel Use Summary” on page 8 of 13 of the Pre-Feasibility Study, the Nenana
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City School District can expect to use 78.14% of the biomass energy produced, while the City of Nenana
would use 16.68%, and the Nenana Native Council 5.18%.
Though the State of Alaska has not been approached, there is a Department of Transportation (DOT)
facility station in Nenana, located in the blocks encompassed by 5th & 6th Streets on the north and south
and D and E Streets on the east and west. This facility is approximately 3 blocks from the proposed
building site and between 2 and 3 blocks from the Nenana Student Living Center (See the 1st Site Plan
map in Appendix C of the Pre-Feasibility Study). The collaborative partners plan to ask the design
professionals to consider routing the piping to the Nenana Student Living Center along a path that would
enable the project to incorporate the Department of Transportation station as an additional partner. This
would expand the public entity use and support of the new boiler system with an additional partner, save
the State of Alaska money in the cost of heating the Nenana DOT facility, and improve the feasibility of
the pipe run from the boiler plant site to the Nenana Student Living Center.
Potential power purchase/sales price - at a minimum indicate a price range:
The Pre-Feasibility Study makes the assumption that wood chips will be delivered to the proposed
biomass plant at a cost of $75/ton. (p. 11 of 13) The projects estimated annual requirement of wood chips
is 1037.3 tons. The project’s cost for wood fuel is estimated at $77,798 annually. The cost of operation
and maintenance of the building, biomass boiler, and piping infrastructure is estimated to be $63,060
annually. Therefore, the estimated power/purchase sales price is $17.61/MBtu.
Proposed rate of return from grant-funded project:
Schedule of Cost of Heat by Facility/Customer
Estimated delivered 8,000
Cost per MBtu of heat
energy
$ 17.61
Current Current Annual Estimated
Cost
Unavoided
Fuel
Total Cost Projected
Saving
Fuel Oil Cost of Fuel Delivered
Mbtu
of
Delivered
Oil heating
at
BioMass
Heating
Over 100%
Facility Name Used Oil at $3.60 Wood Wood 15% of as proposed fuel oil
Nenana City School 34,000 $ 122,400.00 3,098 $ 54,547 $ 18,360 $ 72,907 $ 49,493
Administration 1,600 $ 5,760.00 146 $ 2,571 $ 864 $ 3,435 $ 2,325
Warehouse 4,200 $ 15,120.00 383 $ 6,744 $ 2,268 $ 9,012 $ 6,108
Nenana Student Living
Center
28,800 $ 103,680.00 2,624 $ 46,201 $ 15,552 $ 61,753 $ 41,927
Nenana native Council
Day Care
4,550 $ 16,380.00 415 $ 7,307 $ 2,457 $ 9,764 $ 6,616
City Water Plant 10,700 $ 38,520.00 975 $ 17,167 $ 5,778 $ 22,945 $ 15,575
City Fire Department 3,950 $ 14,220.00 359 $ 6,321 $ 2,133 $ 8,454 $ 5,766
87,800 $ 316,080.00 8,000 $ 140,858 $ 47,412 $ 188,270 $ 127,810
The cost benefit ratio and other supporting data is on the following page.
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Fossil fuel Inflation 5% Operating cost inflation 3%
Estimated Avoided Cost 268,668.00$ Operating cost 140,858.00$
Annual Cost Savings 127,810.00$ Total project cost 3,491,000$
Financial Discount Factor 3%
Present Value Current Net Benefit Years Cash
of Avoiced Project Present Cost (B/C)Flow equals
Costs Cost Value Ratio Project Cost
20 Year $3,566,024 3,491,000$ $75,024 1.02 16
30 Year $6,383,182 3,491,000$ $2,892,182 1.83 16
Avoided Operating Annual Cumulative
Cost Cost Savings Savings Year
268,668.00$ 140,858.00$ 127,810.00$ 127,810.00$ 1
282,101.00$ 145,084.00$ 137,017.00$ 264,827.00$ 2
296,206.00$ 149,437.00$ 146,769.00$ 411,596.00$ 3
311,016.00$ 153,920.00$ 157,096.00$ 568,692.00$ 4
326,567.00$ 158,538.00$ 168,029.00$ 736,721.00$ 5
342,895.00$ 163,294.00$ 179,601.00$ 916,322.00$ 6
360,040.00$ 168,193.00$ 191,847.00$ 1,108,169.00$ 7
378,042.00$ 173,239.00$ 204,803.00$ 1,312,972.00$ 8
396,944.00$ 178,436.00$ 218,508.00$ 1,531,480.00$ 9
416,791.00$ 183,789.00$ 233,002.00$ 1,764,482.00$ 10
437,631.00$ 189,303.00$ 248,328.00$ 2,012,810.00$ 11
459,513.00$ 194,982.00$ 264,531.00$ 2,277,341.00$ 12
482,489.00$ 200,831.00$ 281,658.00$ 2,558,999.00$ 13
506,613.00$ 206,856.00$ 299,757.00$ 2,858,756.00$ 14
531,944.00$ 213,062.00$ 318,882.00$ 3,177,638.00$ 15
558,541.00$ 219,454.00$ 339,087.00$ 3,516,725.00$ 16
586,468.00$ 226,038.00$ 360,430.00$ 3,877,155.00$ 17
615,791.00$ 232,819.00$ 382,972.00$ 4,260,127.00$ 18
646,581.00$ 239,804.00$ 406,777.00$ 4,666,904.00$ 19
678,910.00$ 246,998.00$ 431,912.00$ 5,098,816.00$ 20
712,856.00$ 254,408.00$ 458,448.00$ 5,557,264.00$ 21
748,499.00$ 262,040.00$ 486,459.00$ 6,043,723.00$ 22
785,924.00$ 269,901.00$ 516,023.00$ 6,559,746.00$ 23
825,220.00$ 277,998.00$ 547,222.00$ 7,106,968.00$ 24
866,481.00$ 286,338.00$ 580,143.00$ 7,687,111.00$ 25
909,805.00$ 294,928.00$ 614,877.00$ 8,301,988.00$ 26
955,295.00$ 303,776.00$ 651,519.00$ 8,953,507.00$ 27
1,003,060.00$ 312,889.00$ 690,171.00$ 9,643,678.00$ 28
1,053,213.00$ 322,276.00$ 730,937.00$ 10,374,615.00$ 29
1,105,874.00$ 331,944.00$ 773,930.00$ 11,148,545.00$ 30
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4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in evaluating the
project.
Please fill out the form provided below
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Chipped wood biomass fuel, minimum availability
of at least 100 tons/yr.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other N/A – Nenana is part of the Railbelt grid
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor N/A – Nenana is part of the Railbelt grid
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] N/A – Nenana is part of the Railbelt grid
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 87,800 Total Gallons: For gallons per building, See Table
1.1 on page 6 of 13 in the “Pre-Feasibility” Report.
ii. Electricity [kWh]
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Biomass, 5.8 MMBtu/hr (output)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] N/A
ii. Heat [MMBtu] 8,630 MMBtu
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood [cords, green tons, dry tons] 1037 green tons (30% MC) of chipped wood
iv. Other N/A
Project Cost
a) Total capital cost of new system $3,006,607
b) Development cost $466,890
c) Annual O&M cost of new system $63,060
d) Annual fuel cost 1037.3 tons @$75.00/ton = $77,798
Project Benefits
a) Amount of fuel displaced for
i. Electricity N/A
ii. Heat 87,800 Gal. (85% of usage in 7 different collaborative project buildings)
iii. Transportation N/A
b) Current price of displaced fuel Pre-Feasibility Study reported fuel oil @$3.60/Gal.
School invoice for April 2012 fuel oil was $3.82/Gal.
School invoice for September 2012 was $3.70/Gal.
The project will benefit the collaborative partner’s fuel oil
purchasing and heating budget process in that the volatility
of the price of fuel oil will no longer have a “shock” effect.
c) Other economic benefits Stable, long-term need for a vendor to supply biomass
fuel to the project
local employment opportunities
Increased demand for local source energy to stimulate
employment
Future purchasers of the agricultural land west of
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Nenana will have a market for their trees instead of an
additional expense to dispose of them
d) Alaska public benefits A collaborative project model that can be duplicated in
other rural/remote areas
A community and school that will reduced its need for
fuel oil subsidies from the State
Management of local forested areas to assist with fire
mitigation, saving costs in fighting local wild fires
Power Purchase/Sales Price
a) Price for power purchase/sale Cost sharing among the three entities estimated @$17.61
MBtu based on measured delivered heat to each facility.
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 20 yr B/C Ratio is 1.02; 30 yr B/C Ratio is 1.83
Payback (years) ACF = PC at 16 years
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).
The Nenana Collaborative Biomass Heating System Project proposes to install a wood chip
biomass boiler system.
Efficiency of the biomass technology.
Cordwood, with 20% moisture content, assumes to have a system efficiency of 65%.
Wood pellets, with 7% moisture content, assumes to have a system efficiency of 70%.
Chipped wood, with 30% moisture content, assumes to have a system efficiency of 65%.
Thermal or electric application.
The Nenana Collaborative Biomass Heating System Project will have a thermal application.
Boiler efficiency.
The Nenana Collaborative Biomass Heating System Project is proposed to have chipped
wood fuel. A 30% moisture content assumes to have a boiler efficiency of 65%.
Displaced fuel type and amount.
Through serving the seven buildings of the Nenana Collaborative Biomass Heating System
Project, the proposed biomass boiler estimates to displace approximately 87,770 gallons of
fuel oil on an annual basis. This figure is based on the proposed heating system replacing
85% of existing heating need in the 7 project buildings.
Estimated tons of wood pellets or chips (specify) to be used per year, and average
moisture percentage.
The Nenana Collaborative Biomass Heating System Project estimates to use 1037.3 tons of
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wood chips annually to provide heat to meet 85% of the existing heating need. Wood chips
are assumed to have 30% moisture content and a system efficiency of 65%. Efficiency
increases greatly with lower moisture contents and seasoned biofuels.
Estimated cords of wood to be used per year, specify whether dry or green and the
moisture percentage.
Not Applicable
Ownership/Accessibility. Who owns the land and are their limitations and restrictions
to accessing the biomass resource?
The forested lands around Nenana are owned by Toghotthele Corporation, approximately
138,000 acres, (most of which is forested) and other lands are currently owned by the State
of Alaska. The agricultural land, approximately 178,000 acres (currently forested), west of
Nenana is in the process of being sold by the State over the next few years. There will be a
significant amount of wood removed as this land is developed. A biomass boiler in Nenana
will give developers a market for their trees as they clear land for agriculture, rather than
having the additional expense of disposal. Due to the presence of wild fires in the area over
the past several years, there is desire by local residents and the State to thin some of the
forested land and create fire breaks.
Inventory data. How much biomass is available on an annual basis and what types
(species) are there, if known?
The primary types (species) of trees in the Nenana area are Aspen, Spruce, and Willow. The
quantity of biomass available can be estimated by acre. If a cord of wood weighs about 3,500
pounds and there is an average of 10 cords of wood per acre, then each acre would yield
35,000 pounds of wood or approximately 18 tons. Therefore, to meet the needs of the
proposed collaborative project, an annual harvest of 60 acres of wood is required. Since
138,000 acres of land is owned by the Toghotthele Corporation and 178,000 acres of land
will need to be cleared for agriculture, the Nenana Collaborative Biomass Heating System
Project has an abundant supply of biomass for at least 5,267 years. This abundance of
biomass will allow for the proposed project to meet its need for biofuel and at the same time,
allow Toghotthele Corporation to manage their forested land in a sensible and proper
manner.
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
The Nenana Collaborative Biomass Heating System Project will have a multifaceted, positive
impact on the economy and people of Nenana and the surrounding area. The reduced cost of
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energy will directly benefit the Nenana community by facilitating the transfer of funds that are
currently dedicated to the production of building heat, to the supplementing of city services and
educational programs at both the school and the Nenana Native Council Day Care building
where educational programming from birth through Head Start is available to all families in
Nenana and the surrounding area. The City of Nenana plans to utilize funds saved through the
use of biomass fuel to improve city services and infrastructure. Every child and every family that
has a child or children involved in the community’s educational programs, from birth to high
school graduation, will receive the benefit of more program funding and less money spent on
heat.
In the long term, the Nenana Collaborative Biomass Heating System Project will increase the
demand for local source energy to stimulate employment. In the near term, the construction of
the project will have a significant impact on the local economy by providing an estimated fifty
local jobs for the six month construction phase. The City of Nenana estimates that 35% of
wages will circulate and re-circulate through the local Nenana economy providing benefit to
local businesses.
The project will also have an economic benefit in the development of the agricultural land west
of Nenana. Once purchased, the land will need to be cleared of trees in order to be prepared for
agriculture. A Nenana biomass boiler will allow the trees on the agricultural land to be the first
crop instead of the first expense for the developers who purchase the land. This will spur the
purchase and development of the land and help to strengthen and diversify the local economy.
Lastly, prudent forestry management has an economic benefit at the local, state, and federal
level. A biomass boiler in Nenana will give a market to Toghotthele Corporation and the State of
Alaska for trees that can be thinned as part of purposeful forestry management. Over the last
several years, the Nenana area has experienced two large wild fires and countless smaller wild
fires that damaged property and cost the State and Federal governments millions of dollars to
manage, contain, and put out. Proper forestry management will create fire breaks that will
significantly reduce the severity of wild fires and save fire management costs and property loss.
Potential annual fuel displacement (gallons and dollars) over the lifetime of the
evaluated renewable energy project:
The proposed installation of a wood-fired heating system in Nenana will displace a projected
minimum of 87,800 gallons of fuel oil annually with an annual net cost savings of $127,810.
The total amount of fuel oil displaced over a 20 year period is estimated to be 1,756,000
gallons. In 30 years, 2,634,000 gallons of fuel oil will be displaced. Over a 20 year period,
the total avoided costs are estimated to be $3,566,024, with a Benefit Cost (B/C) Ratio of
1.02. Over 30 years, the total avoided costs are $6,383,182, with a Benefit Cost (B/C) Ratio
of 1.83. In the project’s 16th year of operation, it is expected that the cumulative cost savings
will exceed the total cost of the design and construction of the project. (See the Tables
under 4.4.3 for full details.)
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate): The anticipated annual revenue is calculated by
subtracting the annual cost of operating the plant from the annual avoided cost of using
wood chips instead of fuel oil to obtain the annual cost savings or anticipated revenue. In the
first year, as stated above, the net cost savings is estimated to be $127,810. (The Table
under 4.4.3 “Cost Benefit Ratio and Other Supporting Data” gives full detail over 30 years.)
Potential additional annual incentives (i.e. tax credits):
None
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available):
None
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Discuss the non-economic public benefits to Alaskans over the lifetime of the project:
First and foremost, the Nenana Collaborative Biomass Heating System Project believes that
this project, a collaborative effort among three entities within the Nenana community, will be
of public benefit over the lifetime of the project in that it will serve as a successful model for
other communities, particularly those in rural, remote areas where collaboration will be
necessary to develop feasible projects. Previously funded projects researched by local
Nenana stakeholders were biomass projects granted to and built for single entities, even
though other public facilities were nearby. The Nenana project planners were not able to find
an existing collaborative effort such as the one proposed in this application. Therefore, a
public benefit of this project will be a model of successful integration in an effort that will
maximize the efficiency of centralized boiler systems for communities. This model of
collaboration will be able to be duplicated, modified, and tailored to meet the individual and
diverse biomass heating needs of any rural, remore community that desires and has public
entities that are willing to cooperate and work closely together.
Another non-economic public benefit to Alaskans over the lifetime of the project will be in
education. As evidenced by the letters written by Magen Spencer, Nenana High School
Student Body President, Ralph Crosslin, Nenana K – 12 Principal, and the students of the
Nenana High School Environmental Science Class, this project will provide a real-life,
relevant, project-based learning environment for our students. Nenana’s emphasis of
developing STEM education (Science, Technology, Engineering, and Math) to prepare
students for the 21st Century workforce needs relevant, project-based learning through doing
environments to develop the necessary skills. Current biomass training and workshop
agendas are designed by, lead by, and attended by adults. The educational staff of the
Nenana City Public School envision a biomass conference in Nenana, for youth and adults,
with the principle presenters being Nenana students. Educational experts know that the best
way to deepen ones learning is to teach someone else.
Another educational benefit to Alaskans over the lifetime of the project is the presence of the
Nenana Student Living Center and its connection to the biomass boiler system. As stated
earlier, high school students come to Nenana from villages all over Alaska. In this year’s
student body, over 40 different villages are represented at the center. Many of these villages
have schools and other public entities that are struggling more than Nenana and paying
even higher costs for fuel oil and electricity. Many students at the Living Center want to get a
good education and return home to make a difference in their local community. STEM
education will allow students who are interested to return home with the tools and
knowledge necessary to help their community decrease their dependence on fuel oil through
biomass or other relevant and appropriate technologies for their area.
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SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
Proposed business structure(s) and concepts that may be considered:
Presently, the Nenana City School District is considering managing the business side of
the proposed project through an Enterprise Fund on the Nenana City School District
books. The project anticipates full cost recovery via Btu delivered rates as metered at
each individual building site. Such a system will provide accurate data for reporting
purposes and encourage the operations staff of each building to maintain the highest
degree of efficiency possible. In addition to full cost recovery, the project is also
considering a Sinking Fund (Depreciation) account of an estimated 3 – 5% that will be
saved and utilized to handle any major maintenance or significant repairs or renovations
required for safe and peak efficiency.
Since the project application proposes a shared facility, management and decision-
making processes for the facility will need to be managed by an advisory governing board.
This governing body will be comprised of members appointed by each of the collaborative
partners in as close of a ratio as possible to the anticipated usage at the onset of the
project and revised, as necessary to mirror actual usage in the years to come. More detail
will be provided as the final project business plan is developed. It is anticipated that this
body will have the final say on delivered rates, the percent saved in the sinking fund.
How you propose to finance the maintenance and operations for the life of the
project:
The maintenance and operations of the plant and piping infrastructure, for the life of the
project, will be financed through the use of the avoided costs retained by the use of the
wood chip biomass fuel as compared to the cost of fuel oil (See the spreadsheet under
4.4.2 Project Operating and Maintenance Costs). In summary, the cost of 87,800 gallons
of fuel oil at $3.60/gal. is $316,080. Since the biomass boiler is expected to replace 85%
of the fuel oil purchased by the project partners, it will give the project an estimated
$268,668 in avoided costs. The project application proposes an estimated operating cost
of $140,858, which is well below the anticipated avoided costs, which are already a part of
each entity’s annual budget. This maintenance and operational cost financing plan will
allow for proper plant operations and upkeep and give each entity some welcome budget
relief or the capacity to reallocate funds from fuel oil purchasing to desired programs or
services.
Identification of operational issues that could arise:
The project partners, the Nenana City School District and the City of Nenana in particular,
have experienced, long-tenured employees in the area of facility maintenance. There is
also a demonstrated commitment to complete and proper training in all building systems
operated by the partners. As such, the project partners believe that any potential
operational issues will be resolved in a safe, expeditious, and proper manner. It can be
expected that all operations and maintenance personnel employed by the collaborative
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partners will receive training in the operations and maintenance of the biomass plant and
the piping infrastructure. By training all personnel, the project partners believe that
Nenana will have sustained expertise so that this system can be properly maintained
throughout its lifespan. The Nenana City School District also has a computerized
preventive maintenance program that automatically creates and tracks work orders that
will help the operations and maintenance staff maintain the boiler and piping infrastructure
according to specifications, with the capacity to document and report all preventive
maintenance inspections and any work required as a result. At present, no specific
operational issues are anticipated. However, should an operational issue arise, the
existing expertise, the training each maintenance person will receive, and the systems in
place to create, document, and report work orders is expected to resolve any issues in a
timely and appropriate manner.
A description of operational costs including on-going support for any back-up or
existing systems that may be required to continue operation:
A complete, itemized description of the estimated Project Operating and Maintenance
Costs is located in a spreadsheet under section 4.4.2 of this application. The budget for
the operational costs estimate includes the purchase of wood chips @ $75/ton ($77,798),
Other parts and materials ($10,000), Inspections and contracted repairs ($7,500), Utilities
– electric power ($15,000), Insurance ($4,000), Maintenance personnel wages and
benefits (¼ FTE - $17,252), Direct administrative hours ($2,600), and Indirect
administrative hours ($6,708), for an estimated annual operating cost of $140,858. The ¼
FTE personnel will be provided by the Nenana City School District from the reduced hours
required to maintain the current fuel oil boiler systems at the various school buildings.
All existing fuel oil boilers will remain operational and utilized to fulfill the 15% need that
the biomass heating system will not provide and provide building heat in the event the
biomass boiler is unable to perform due to maintenance or repair. Since these systems
will only be utilized to meet the heating needs in extreme cold weather situations or when
the biomass boiler is off-line for maintenance or repair, the amount of maintenance time
necessary to maintain each boiler will be significantly reduced. Each collaborative partner
is confident that these back-up systems will be able to be maintained routinely and
properly with the existing personnel that each partner employs.
Commitment to reporting the savings and benefits:
As the collaborative partner responsible for the fiduciary aspects of the project, the
Nenana City School District has the capacity and a history of commitment to the proper
and required reporting of all grants received, from both State and Federal sources. The
following two spreadsheets, “Schedule of State Financial Assistance” and the “Schedule
of Expenditures of Federal Awards” is indicative of the capacity of the Nenana City School
District to manage and support the reporting on the Nenana Biomass Heating System
Project grant award for years to come. As a school district, finances are audited annually,
with records demonstrating compliance and sound business and professional practices
and safeguards.
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Schedule of State Financial Assistance
Year Ended June 30, 2012
Total
Grant Grant Eligible
Grant Title Number Award Expenditures
Department of Education and Early Development:
Direct:
Foundation None $6,206,747 6,206,747
Quality Schools Grant None 17,758 17,758
Residential program None 768,441 768,441
Student Transportation None 115,081 115,081
HB108 onetime grant None 91,165 91,165
Staff development None 6,611 6,611
Total Department of Education and
Early Development 7,205,803 7,205,803
Department of Administration:
TRS on-behalf None 606,954 606,954
PERS on-behalf None 156,727 156,727
Total Department of Administration 763,681 763,681
Total State Financial Assistance $7,969,484 7,969,484
1.This Schedule was prepared on the modified accrual basis of accounting.
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Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Catalog of
Federal
Domestic Total Federal
Grant Assistance Grant Share of
Grant Title Number Number Award Expenditures
Department of Education:
Passed through the State of Alaska Department
of Education and Early Development:
Special Education Cluster:
Title VI-B, Special Education SE12-034-01 84.027 $173,795 173,795
Section 619, Preschool Disabled SE12-034-01 84.173 267 267
ARRA Title VI-B, Special Education SE12-034-01 84.391 22,436 22,436
Total Special Education Cluster 196,498 196,498
Title I-A Cluster:
Title I-A, Basic IP12-034-01 84.010 96,244 96,244
Title I-A, Highly Qualified IP12-034-01 84.010 381 381
Total Title I-A Cluster 96,625 96,625
Title II-A, Training and Recruitment IP12-034-01 84.367 8,698 8,698
Migrant Education IP12-034-01 84.011 21,001 21,001
Carl Perkins - Basic EK12-034-01 84.048 15,501 15,501
Education Jobs EJ12-034-01 84.410 1,145 1,145
Title IID, Enhancing Education thru TechnologyET12-034-03 84.318 128 128
Total Department of Education passed through
the State of Alaska 339,596 339,596
Direct Programs:
Impact Aid S041B-2011-0164 84.041 4,225 4,225
Impact Aid S041B-2010-0164 84.041 2,164 2,164
Impact Aid S041B-2009-0164 84.041 149 149
Alaska Native Education S356A110042 84.356 160,412 160,412
Indian Education E060A071216 84.060 40,316 40,316
Total Direct Programs 207,266 207,266
Total Department of Education 546,862 546,862
Department of Health and Human Services:
Passed through the State of Alaska -
Substance Abuse Prevention and Treatment Grant602-13-739 93.959 107,880 107,880
Medicaid None 93.770 5,958 5,958
Total Department of Health and Human Services 113,838 113,838
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SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
For many years, stakeholders throughout Nenana have been talking about, learning about, and
studying alternative energy for the community. Over the past two year, that focus has turned to
biomass, in large part due to its availability in the area, its potential as an economic driver for
employment and reduced heating costs, and the need for forestry management to assist in the
mitigation of area wild fires. The City of Nenana, the Nenana City School District, and the
Nenana Native Council have prepared for this award through the establishment of long-term,
collaborative work in many areas, particularly education (early childhood through high school
graduation).
Nenana has stable leadership. Jason Mayrand has been the Mayor of Nenana since 2001. Eric
Gebhart became Superintendent of Schools in 2008 and Carl Horn has been the school district’s
Director of Finance since 2002. The community of Nenana has had a state-wide vision of service
and leadership throughout its rich history. In the early 1900’s, in cooperation with the Nenana
Native Council, St. Mark’s Episcopal Mission School educated children from all throughout
Alaska’s Interior. In the present, the Nenana Student Living Center houses up to 88 high school
students per year, who are educated at Nenana High School. This year, students from over 40
different villages across the State have come for the educational opportunities offered in Nenana.
The Nenana City School District also has a state-wide correspondence program, CyberLynx,
where about 700 more students receive their K – 12 educational foundation. The two financial
schedules in the section above demonstrate the management and fiduciary capacity and
preparation of the Nenana City School District for leadership in a community collaborative
endeavor such as this application presents. Since Mr. Gebhart has been Superintendent, the school
Department of Agriculture:
Passed through the State of Alaska -
Farm to School Grant Program ASP10-12-005-14 10.575 1,021 1,021
Fresh Fruit & Vegetable Program FF12-034-02 10.582 7,262 7,262
National Student Lunch Program MA12-034-01 10.555 55,183 55,183
Total Department of Agriculture 63,466 63,466
Total Federal Financial Assistance $724,166 724,166
Notes to Schedule
1.This schedule was prepared on the modified accrual basis of accounting.
2. ARRA = American Recovery and Reinvestment Act of 2009.
3. No amounts were passed through to subrecipients.
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district has also successfully completed two major maintenance projects that significantly
upgraded conditions at the school. The Nenana Fire Sprinkler Installation, with a project budget
of $573,338 and the HVAC Controls (building-wide), Gymnasium Lighting, and Bleacher Project
with a budget of $733,936 were completed simultaneously during the summer of 2009. The
school district has submitted Capital Improvement Project application to the Alaska Department
of Education and Early Development, but currently has no major maintenance projects pending.
Therefore, the district’s administrative and maintenance efforts can be fully devoted to the
establishment and completion of the Nenana Collaborative Biomass Heating System Project.
The City of Nenana completed significant work in preparation for the building of a bridge across
the Nenana River at 10th Street and then secured planning and right of ways for a road that will
access the agricultural land west of Nenana that has been referred to elsewhere in this application.
During the 2012 Legislative Session, Mayor Jason Mayrand was able to have the funding
necessary for the city to construct the bridge and the road included in the bond package that is on
the November election ballot. If the bond package is passed by the voters, which is expected, the
City of Nenana will be able to begin construction of a bridge and road to 178,000 acres of
currently forested agricultural land.
Specifically, in preparation for an actual biomass project in Nenana, the Pre-Feasibility
Assessment for Integration of Wood-Fired Heating Systems Final Report (July 24, 2012) was
funded by the Alaska Energy Authority and the U.S. Forest Service for Toghotthele Corporation,
the Nenana School District, and the City of Nenana. This assessment demonstrates and the project
is economically feasible. The wide-spread interest in a community biomass project demonstrates
the readiness of the community to support it.
It is the intention of the Nenana Collaborative Biomass Heating System Project partners to pursue
this project to its completion. It is the number one capital priority of the School District, the City
and the Native Council. The timetable that has been set is aggressive, but the project partners and
the community of Nenana, believe they are up to the task.
SECTION 8– LOCAL 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 with this application are Resolutions of support passed by the Nenana City School
District, the City of Nenana, and the Nenana Native Council. Each of these three entities has been
involved in hosting wood biomass informational meetings since early 2011. A wood biomass
heating system for the Nenana community has been an agenda item on each entities individual
meeting agendas on several occasions since then. The City of Nenana hosts a joint public meeting
with the Nenana City School District and the Nenana Native Council twice each year. Utilization
of biomass in Nenana has been a joint meeting agenda topic for two years.
During both individual and joint meetings, extensive public support has been given to the concept
of a Nenana biomass project. There have also been four additional general public meetings and
several smaller working group meetings with significant community participation. At the last
joint meeting, held August 2, 2012, when the Nenana Collaborative Biomass Heating System
information was presented and discussed, public support was expressed for this proposed
application and no opposition to the project was evident. Energy in Nenana, biomass in particular,
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has also been a supported topic of discussion during local Nenana Community Planning meetings
sponsored by the Tanana Chiefs Conference and at the local Nenana Wellness Coalition meetings
where many community stakeholders gather to discuss, sponsor, and implement ways to improve
the life, health, and wellness of Nenana area residents.
Jim Sackett, the CEO of Toghotthele Corporation, the Alaska Native Village Corporation for
Nenana, has been involved in the investigation of biomass as an alternative fuel source for
Nenana and the development of this project from its beginnings. A letter from Mr. Sackett is
included with this application. There are also several additional letters from members of the
Nenana community and the surrounding area lending their reasoned support for the Nenana
Collaborative Biomass System Heating Project. The students of the Nenana City Public School
are excited about the economic and educational aspects of the program, as evidenced by the letter
from the Nenana High School Student Council and the high school’s Environmental Science
class. The students and teachers look forward to the relevant hands-on learning opportunities that
planning, construction, and operation will avail them, directly across the street.
SECTION 9 – GRANT BUDGET
Tell us how much you 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.
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Funding Source: Alaska Energy Authority – $466,890
These funds are for the design development, permitting, and construction supervision of the
Nenana Collaborative Biomass Heating System Project. These funds are for the professional
design and engineering services needed to design, develop, build, and commission a boiler
facility and piping infrastructure in Nenana. The project does not anticipate needing additional
design and permitting funds when an application is made for construction funding.
Funding Source: Nenana City School District and the City of Nenana - $19,200
These funds are in-kind and intended to meet the financial requirements of the project and to
assist the design and engineer professionals in their design development and permitting work
until final design documents are complete. Additional design and permitting related in-kind hours
will be contributed during the construction phase of the project, along with significant in-kind
matching dedicated to actual project construction. These hours, along with land, material, labor,
equipment, power, and related matching contributions, will be designated in the in-kind match of
Construction Funding application. A breakdown of the in-kind contribution to this specific
application is below:
City Mayor: 120 hours = $6,600 (salary & benefits)
School Superintendent: 120 hours = $7,800 (salary & benefits)
School Business Manager: 80 hours = $4,800 (salary & benefits)
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Applications should include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and
Permitting, and Construction). Please use the tables provided below to detail your proposed
project’s budget. Be sure to use one table f or each phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator,
Shawn Calfa, at scalfa@aidea.org.
Nenana Collaborative Biomass Heating System Project
Design & Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
Design & Permitting
Application
TBD, based
on when
construction
funding
becomes
available
$466,890 $19,200 In-kind $486,090
$ $ $
$ $ $
$ $ $
TOTALS $466,890 $19,200 $486,090
Budget Categories:
Direct Labor & Benefits $ $19,200 $19,200
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $466,090 $ $466,090
Construction Services $ $ $
Other $ $ $
TOTALS $466,090 $19,200 $486,090
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Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and
Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource
identification and
analysis
3. Land use, permitting,
and environmental
analysis
4. Preliminary design
analysis and cost
5. Cost of energy and
market analysis
6. Simple economic
analysis
7. Final report and
recommendations
1. Project scoping
and contractor
solicitation.
2. Detailed energy
resource analysis
3. Identification of
land and regulatory
issues,
4. Permitting and
environmental
analysis
5. Detailed analysis of
existing and future
energy costs and
markets
6. Assessment of
alternatives
7. Conceptual design
analysis and cost
estimate
8. Detailed economic
and financial
analysis
9, Conceptual
business and
operations plans
10. Final report and
recommendations
1. Project scoping
and contractor
solicitation for
planning and
design
2. Permit
applications (as
needed)
3. Final
environmental
assessment and
mitigation plans
(as needed)
4. Resolution of
land use, right of
way issues
5. Permit approvals
6. Final system
design
7. Engineers cost
estimate
8. Updated
economic and
financial analysis
9. Negotiated
power sales
agreements with
approved rates
10. Final business
and operational
plan
1. Confirmation that all
design and feasibility
requirements are
complete.
2. Completion of bid
documents
3. Contractor/vendor
selection and award
4. Construction Phases
–
Each project will have
unique construction
phases, limitations,
and schedule
constraints which
should be identified
by the grantee
5. Integration and
testing
6. Decommissioning old
systems
7. Final Acceptance,
Commissioning and
Start-up
8. Operations Reporting
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 36 of 37 7/3//2012
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Nenana City School District
Regular Election is held: October
Date: October 2, 2012
Authorized Grant Signer(s):
Printed Name Title Term Signature
Eric Gebhart Superintendent N/A
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Teresa Mayrand School Board President 10/09 – 10/12
Grantee Contact Information:
Mailing Address: PO Box 10
Nenana, AK 99760
Phone Number: (907) 832-5464
Fax Number: (907) 832-5625
E-mail Address: supt@nenanalynx.org
Federal Tax ID #: 92-6000107
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 37 of 37 7/3//2012
SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Letters demonstrating local support per application form Section 8.
C. An electronic version of the entire application on CD per RFA Section 1.7.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Eric Gebhart
Signature
Title Superintendent
Date