HomeMy WebLinkAboutKPBSD GrantApplication Round 6 FINALRenewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 1 of 30 7/3/2012
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.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 2 of 30 7/3/2012
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Kenai Peninsula Borough School District (KPBSD)
Type of Entity: Local Government Fiscal Year End: June 30
Tax ID # 92-0030923 Tax Status: For-profit or X non-profit
Mailing Address
148 N. Binkley St.
Soldotna, AK 99669
Physical Address
148 N. Binkley St.
Soldotna, AK 99669
Telephone
907-714-8888
Fax
907-262-9645
Email
davejones@kpbsd.k12.ak.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Dave Jones
Title
Assistant Superintendent
Kenai Peninsula Borough School District
Mailing Address
148 N. Binkley St.
Soldotna, AK 99669
Telephone
907-714-8857
Fax
907-262-9645
Email
davejones@kpbsd.k12.ak.us
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your application
will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2 Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 3 of 30 7/3/2012
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)
Seward Schools Biomass Heating System
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.
Location – latitude and longitude or street address or community / communities served:
The proposed project will serve the community of Seward, AK, located on the Kenai Peninsula.
The three locations for the project are:
1. Seward Middle School, 304 Sea Lion Avenue, Seward, AK 99664
2. William H. Seward Elementary School, 606 Sea Lion Avenue, Seward, AK 99664
3. Seward High School, P.O. Box 1049, Seward, AK 99664
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.
Location – latitude and longitude or street address or community / communities served:
The proposed project will serve the community of Seward, AK, located on the Kenai Peninsula.
The three locations for the project are:
1. Seward Middle School, 304 Sea Lion Avenue, Seward, AK 99664
(60.132177,-149.431508)
2. William H. Seward Elementary School, 606 Sea Lion Avenue, Seward, AK 99664
(60.132209,-149.431658)
3. Seward High School, P.O. Box 1049, Seward, AK 99664
(60.133855,-149.422388)
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Seward, AK
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)
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 4 of 30 7/3/2012
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance X Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The proposed project will undertake final design and construction of a wood-fired hydronic
heating system in three Seward schools. A Feasibility Study (FS) was completed in July, 2011
by Dan Parrent, USDA Forest Service, which served the purpose of both Reconnaissance and
Feasibility. The Feasibility Study was also reviewed in a document prepared by Lew McCreery
(USDA FS) of the USDA Wood Education and Resource Center (WERC). Both reports
(attached to this application) attested to the viability and readiness of the project, which is now
ready to proceed to Final Design and Construction Phases. This proposed Seward Schools
Biomass Heating System project will implement the following multi-phased process:
• Phase III, Final Design of a wood-fired hydronic heating system to heat the combined
Seward High, Middle and Elementary School campus with woody biomass fuel.
• Phase IV, Construction, Commissioning, and Operation of the heating system and follow
up reporting on operation and maintenance.
The project is designed to proceed without the delay of additional grant year cycles. Reports
from the 2011 feasibility assessment and a 2011 District energy evaluation will serve as the
reference documents for this project.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.)
A variety of financial and public benefits will result from this project. They include:
1. Annual Energy Savings: The Kenai Peninsula Borough School District (KPBSD) seeks to
minimize overhead costs, including energy bills, so that more funds may be allocated to
educational programs. The proposed biomass system will offset an estimated 80% of the
fossil fuel currently used for heat in the combined Seward schools campuses. A Feasibility
Study (FS) titled “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD
Schools in Seward, AK,” (Dan Parrent, USDA Forest Service) was created in July 2011,
which evaluated the potential for heating the Seward school facilities with pellet-fired boilers.
The FS indicates annual savings estimates of about $28,000 at the Elementary School,
$63,000 at the Middle School, and $148,000 at the High School.
“Seward, AK Project Assessment Review and District Energy Evaluation” (USFS Wood
Education and Resource Center- WERC) is a report reviewing the conclusions of the FS
report, and also discusses the possibility of adding the City-owned Assisted Living Center to
the school District heating system, and of adding a steam turbine to produce electrical
power. KPBSD has opted for a school-only, heat-only grant proposal.
The three (3) school buildings in the proposed system currently use approximately 120,600
gallons of fuel oil annually at a cost of $461,794 (at $3.83/gallon). Installing a 2 MMBtu/hr.
biomass pellet boiler system would offset over 80% of this fuel oil usage producing an
annual savings of approximately $117,330.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 5 of 30 7/3/2012
2. Job Creation:
National Renewable Energy Lab (NREL) has stated in their publication, The Value of U.S.
Biomass Power, that 4.9 jobs are created for every megawatt of biomass energy generated.
The project size, 2 MMBtu, is equivalent 0.58 MW of thermal energy, resulting in an
estimated 2.8 FTE jobs.
3. Education and Increased Awareness:
This project will be high profile, and visible to the entire community, students, and families.
Using successful Alaska biomass models for school sites, KPBSD will leverage the project
to engage students and community members for raising awareness about sustainable forest
management, carbon sequestration and biodiversity, and wood products development. The
KPBSD proposes that spending less public money on heating schools will increasingly
benefit the public, such that more funds may be allocated to educational programs.
4. State-wide Benefits:
Renewable energy biomass projects save on costs of imported fossil fuels, lower overall
emissions and offer additional environmental and health impact benefits to all of Alaska,
mainly from the use of renewable fuels versus fossil fuels. Biomass Energy adds the benefit
of economic localization, using locally or regionally-produced fuels versus imported fossil
fuels that contribute little, if anything, to the local economy.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the
project.
The total project cost is estimated to be $1,415,234, of which the grant request is for
$1,367,464, for a multi-phase project to deploy a biomass school heating system. The $47,770
balance will be added by the KPBSD in cash and in-kind contributions to the project ($37,770 in
kind, plus $10,000 cash).
KPBSD requests that the grant be approved for Phase III and Phase IV of the Project, Final
Design, and Construction. The project phases will be subject to a go/no-go decision threshold at
the review and approval by AEA of the sequential phases. Phases could then proceed without
the delay of additional grant year cycles. It is anticipated that the project funding will come from
the AEA Renewable Energy Fund. The KPBSD will contribute cash and management
resources for the project.
o PHASE I Reconnaissance is complete.
A “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in
Seward Alaska” and an “Assessment Review and District Energy Concept Evaluation”
have already been completed and are submitted with this application.
o PHASE II Request is complete.
Level 2 Feasibility Study requirements have been satisfied by the preceding documents,
and the project is ready to move into PHASE III.
o PHASE III request $100,000
Final Design and Permitting including System Design, Costing and Contractor
Solicitation, Permitting and Environmental work, and updated economic analysis.
o PHASE IV Request: $1,267,464
Construction and Commissioning including Project Coordination, the bidding process,
bid award, construction installations, commissioning, and monitoring.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 6 of 30 7/3/2012
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. $1,367,464
2.7.2 Cash match to be provided $10,000
2.7.3 In-kind match to be provided $37,770
2.7.4 Other grant applications not yet approved $N/A
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $1,415,234
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)
$1,415,234
2.7.7 Estimated Direct Financial Benefit (Savings)
Total 20 Year Benefit:
$1,717,665 (NPV)
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.)
Economic localization
and school district
cost stabilization
Renewable Energy Fund Round 6
Grant 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.
PROJECT MANAGER(S)
Mr. David Jones, Assistant Superintendent of Kenai Peninsula Borough School District,
will manage the project. Additionally, KPBSD will contract with a professional project
coordinator for all phases of the project.
Mr. Jones will oversee labor for the project, engineering firms and consultants, procurement
processes, management of construction contractors, selection of heating system equipment,
review of plans and specifications, on-site inspections, and review and approval of work, and
other duties to ensure that the completed work conforms to the requirements of the grant and
the construction documents. He will work closely with Mr. Steve Atwater, Superintendent of
Schools, and with the KPBSD Director of Planning and Operations through the project
completion, and according to District policies and procedures. In addition, he will coordinate all
financial reporting and requirements through Laurie Olson, the KPBSD Director of Finance.
(KPBSP commitment letter and District organizational chart is attached)
Mr. Jones has been with the KPBSD since 2007, and among his current responsibilities, he
oversees Planning and Operations for the District. He has more than twenty-four (24) years of
school administration experience, including positions as Director of Finance and Business
Manager. He has worked in school administration here in Alaska for the past fifteen (15) years.
Mr. Jones received his Bachelor of Arts degree in Business Administration and also in Political
Science at Concordia College in Minnesota, and has continued his education, including studies
at the University of Montana School of Law in Missoula, Montana. Mr. Jones’ biography is
attached.
PH: 907.714-8857 Cell: 907-539-5959 Email: davejones@kpbsd.k12.ak.us
References
o Steve Atwater, Superintendent of Schools
Kenai Peninsula Borough School District
PH 907-714-8888, FAX 907-262-9645
o Donna Peterson, Retired Superintendent of Schools, KPBSD
52856 Tenakee Loop, Kenai, AK 99611
Doc.donnapeterson@gmail.com PH 907-398-4335
o John Sedor, Attorney, Sedor Wendlandt Evans Filippi, LLC
500 L Street, Suite 500, Anchorage, AK 99501
sedor@alaskalaw.pro 907-677-3600
Renewable Energy Fund Round 6
Grant Application
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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.
PHASE III: FINAL DESIGN & PERMITTING
MILESTONES TASKS Start
Date
End
Date
1. Project scoping and
contractor solicitation
completed
Update all data to confirm that
biomass pellets and other project
resources are available; prepare RFPs
for Project Coordinator and
Engineering contractors
Month 1 Month 2
2. Permit applications
completed
Complete all permit applications as
needed Month 1 Month 3
3. Final environmental
assessment and mitigation
plans completed
Resolve any and all environmental
issues Month 1 Month 3
4. Resolution of land
use, right of way issues COMPLETE N/A N/A
5. Permitting, rights of
way, site control completed
Obtain any required permits and
finalize site control agreement Month 1 Month 4
6. Final system design
completed
Work with contractor to finalize the:
a) Engineered and approved system
design; b) Engineered and approved
integration design
Month 2 Month 5
7. Final cost estimate
completed
Update project cost estimates; Go/No
Go Review that will include AEA
review and approval of final design
and cost estimates
Month 3 Month 5
8. Updated economic
and financial analyses
completed
Develop a financial analysis based on
chosen business structure, applicable
costs & revenues
Month 4 Month 2
9. Power or heat sale
agreements in place N/A N/A N/A
10.Final business and
operational plan completed
Complete the operational and
business plan; include feedback from
a go/no go decision process; review
process & approval by AEA
Month 5 Month 6
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 9 of 30 7/3/2012
PHASE IV: CONSTRUCTION, COMMISSIONING, OPERATION, AND REPORTING
MILESTONES TASKS Start
Date End Date
1. Design and feasibility
requirements completed
Complete construction plan and
schedule Month 6 Month 7
2. Bid documents
completed
Advertise and review submitted
vendor bids Month 6 Month 7
3. Vendor selected and
award in place
Commissioning plan and schedule
project work Month 7 Month 8
4. Construction
Track project costs against project
budget and propose modifications as
needed; Manage cost overruns;
Modifications to final design; interior
construction, plumbing, HVAC, fire
protection, electrical
Month 9 Month 13
5. Integration and
testing
Coordination of conversion,
integration with existing system;
Continuous monitoring to verify and
update projections and system
efficiency
Month 13 Month 14
6. Final acceptance,
commissioning, and start-
up
Project commissioning; Relevant
inspections and/or reporting to
permitting agencies
Month 14 Month 14
7. Operations Reporting
Update business plans to align with
actual construction costs; Final project
report with as-built specs; Ongoing
monitoring and reporting
Month 14 Month 14
The proposed project is for a relatively simple wood pellet heating system, designed as a multi-
phase project that will utilize a “go/no go” decision threshold upon the review by AEA of the
Phase III Final Design and Permitting.
This process will finalize the final design and cost estimates to proceed with construction during
the summertime ‘building months’ and to complete the project before school starts - without the
delay of additional funding application cycles.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 10 of 30 7/3/2012
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.
KPBSD has sufficient time, qualified staffing and available on-site resources to successfully
complete the proposed project. Following is a brief description of personnel and resources
available to the project:
Personnel
Dr. Steve Atwater, Superintendent of Schools for the entire Kenai Peninsula Borough and
is the Authorized Signer for the project. He is responsible for designating the Project Manager
and directs the planning of all educational features of new buildings or alterations of old
buildings. Dr. Atwater acts as the authorized agent of the District in all official governmental
interactions related to school facilities. In conjunction with the borough, he is involved in the
preparation of bids, award of contracts and collaboration with the construction process.
PH 907-714-8888 FAX 907-262-9645
Mr. David Jones, Project Manager, and Assistant Superintendent of Kenai Peninsula Borough
School District. (See above, 3.1. for brief bio, contact information, and description of project
responsibilities.) David will work closely with the Project Coordinator and will oversee the
construction and installation of the new system as the Site Maintenance Supervisor.
Mr. Dave Tressler, Director of Planning and Operations for the District since July of 2012
provides maintenance support to all schools and departments of KPBSD. He serves as the
chair on Building Advisory Committees and will work closely with the Project Coordinator
and will oversee the construction and installation of the new system as the Site
Maintenance Supervisor.
Mr. Tressler currently coordinates capital projects and major maintenance with various KPBSD
departments and follow-up onsite inspections conducted by the Department of Environmental
Conservation and the State Fire Marshal. This expertise will be valuable for working through
each of the processes proposed for this project, and in close alignment with Dave Jones, for
coordinating labor and installation of the new system and assisting with reporting requirements.
He oversees all OSHA, ADA, and AHERA requirements and issues and is responsible for
preparing a preventative maintenance plan for the Department of Education and Early
Development. Prior to his current position, Mr. Tressler served as Director of Maintenance for
the Kenai Peninsula Borough for over ten (10) years and was the Safety Coordinator/General
Foreman for an additional nine (9) years. His biography is attached.
PH: 907-714-8820 Cell: 907-398-4436 Email: dtressler2@kpbsd.k12.ak.us
References
o Dave Jones, Assistance Superintendent
PH: 907.714-8857 Cell: 907-539-5959 Email: davejones@kpbsd.k12.ak.us
o Steve Atwater, Superintendent of Schools, Kenai Peninsula Borough School District
PH 907-714-8888, FAX 907-262-9645
Ms. Laurie Olson, Director of Finance, will be responsible for management of the budget,
including purchasing, tracking expenses, and overall financial oversight. Her current
responsibilities are to supervise and oversee payroll, accounts payable, grant reporting, fixed
assets, and Medicaid reimbursement activities. Ms. Olson coordinates the development of the
annual budget and creation of budget documents, annual financial audit and financial reports,
and provides other support and assistance to KPBSD schools and departments on financial
Renewable Energy Fund Round 6
Grant Application
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matters. In addition to her role described above for the project, Ms. Olson will work with the Mr.
Jones and Mr. Spence to track project costs versus budget. She will also be responsible for
managing budget revisions and reporting any cost overruns during monthly budget report to the
school board.
PH: 907-714-8852 Email: laurie@kpbsd.k12.ak.us
Contractors
KPBSD intends to hire contractors for various stages of the project (project coordination,
engineering and construction). KPBSD will go out to bid for a Project Coordinator, and
contractors for final design and construction. KPBSD will require that contractors certify that
they are authorized to do business in the State of Alaska have proof of licensing and insurance.
Contractors will be required to have sufficient knowledge and experience to successfully fulfill
their contract. Contractors who are familiar with wood fired hydronic heating system installation
will be given priority for selection. Contractors will supply all equipment, labor and materials
necessary to accomplish the project. The process will include the Project Manager, Project
Coordinator and project team drafting an RFP according to KPBSD procurement policies.
Equipment Services/Suppliers
Contractors will provide equipment necessary for design, construction and deployment. The
KPBSD will provide access to existing heating systems to allow integration.
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.
To effectively monitor the project and keep the Authority informed of its status, KPBSD has
adopted a 2011/2012 Strategic Communications Plan, which details both the internal
communications between staff and the external communications with contractors, officials,
parents, and students. Once project funds are released, KPBSD and its subcontractors will
have regular meetings as needed to update progress on design criteria, alterations to building
design, materials orders and delivery schedules, hiring qualified skilled labor and additional sub-
contractors necessary and when needed, site conditions, pre-construction action plan,
installation of any measurement and verification resources, as well as health and safety issues.
At all meetings, notes will be taken, and AEA will be invited to attend. A monthly report will be
issued to AEA and copied to KPBSD Public Works Director. KPBSD’s intention is for a
successful, transparent and cooperative project.
The Project Manager (Dave Jones) maintains work logs for the Superintendent and checks in
weekly. Monthly reports are produced for the School Board and Superintendent. Monthly
reports will be made available to the AEA or as otherwise required. The Construction Manager
will be required to submit questions or changes for answers/approval to the Project Manager
and to the Superintendent. Regular reports will track the progress of the project, and monthly
reports will be prepared for the School Board.
The Site Maintenance Supervisor will produce a regular report on the status of the project. The
status summary will be sent to the Superintendent and Project Manager and summarized for the
School Board’s monthly packet; this in turn will be sent to the AEA on a regular basis by the
Alaska Energy Authority. Maintenance work logs and work orders will be maintained at the
District Office. A monthly financial report is required for the School Board on all projects, along
with a project report, and will be maintained by the Director of Finance. These reports detail
expenditures and progress for the school board and the Superintendent. A copy of the School
Board minutes and the School Board packet are on file at the KPBSD District Office and will be
available on the District’s website for viewing. The project team is required to report to David
Jones on a regular basis. Written progress reports are sent to the School Board and the
Superintendent on a monthly basis.
Renewable Energy Fund Round 6
Grant Application
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3.5 Project Risk
Discuss potential problems and how you would address them.
Realistic planning timelines and project flowcharts, contingency plans, and ensuring that lines of
communication are used, will reduce many of the problems that might otherwise occur. Some
potential challenges have been listed below, with the resolutions that are in place to address
each.
Potential Challenges
1. Design/ Build costs that go beyond the Scope of Work described in this proposal.
Resolution to Address the Problem: This risk has been addressed by obtaining estimates of
probable costs from experienced professionals for the key project budget items.
Professionals include people who have worked on projects of similar scale and scope in
similar geographic regions. Additionally, the risk of higher than anticipated project costs will
be reduced by implementing a go/no-go decision process that requires key project
developments to be evaluated before moving on to the next project phase.
2. Challenges for wood fuel procurement.
Resolution to Address the Problem: This risk is diminished by Phase III, Milestone 1, which
updates all data to confirm that biomass and other project resources are still available. Wood
Pellets are an increasingly available commodity, widely accessible from in-State and Outside
sources.
3. Construction delays, which include inclement weather, forest fire, or gaining the required
approvals from the Division of Fire and Life Safety.
Resolution to Address the Problem: The District has addressed this risk by developing Board
policies to ensure a comprehensive approach to projecting and planning needs for
construction projects. According to Board Policy 7100 (Construction) the following elements
are to be considered in planning school facilities:
1. The expanding and changing educational program of the District including the number of
children to be served and their specific educational needs.
2. The impact of proposed facilities on the community and considerations regarding
community use of the facilities.
3. Safety and welfare of students.
4. The relationship between existing and new facilities.
5. Community planning and zoning requirements.
6. Other site specific information which provides guidance in the planning of facilities.
7. The forecasted enrollments and demographic factors.
The District works with experienced professionals who have been active in construction
projects in similar geographic area.
4. Safety risks associated with construction
Resolution to Address the Problem: In order to address this potential risk, KPBSD will require
that contractors are properly licensed and insured. Construction site safety risks will be
addressed by the contractor pursuant to KPBSD existing policies. Equipment warranties will
be assembled and added to the operations and maintenance manual.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 13 of 30 7/3/2012
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.
Evidence demonstrating preceding phases are satisfied
The Feasibility Study outlined project parameters confirming the viability of the project. The
Study had the following objectives:
• Evaluate the suitability of the facilities and sites for installing biomass boilers
• Assess the type(s) and availability of wood fuel(s)
• Size and estimate the capital costs of suitable wood-fired system(s)
• Model the annual operation and maintenance costs of a pellet-fired system
• Model the potential economic benefits from installing a pellet-fired heating system
The study confirmed that the facilities were technically well-suited to heating with wood pellets,
as are most schools, and would require 1,121 tons per year. For the three project buildings, the
study calculated the required boiler capacity (RBC) during the coldest 24-hour period to be 2.09
MMBTU. The study modeled the annual O&M costs using projected O&M costs; it estimated the
non-fuel O&M of the Middle and Elementary Schools be $8,075, and the High School to be
$13,075 annually. Finally, the study confirmed an attractive payback of 13.5 years for a system
serving the Middle and Elementary Schools, and 10.17 years for a system at the High School.
The study estimated the pellet requirements for all three (3) schools to be approximately 1,121
tons per year. Wood pellets are commercially available from both in-State and Outside sources.
Sources include:
• Superior Pellets, pellet manufacturing with a capacity of 30,000 tons per year operating in
North Pole, AK, plans bulk delivery capacity (2012).
• Ketchikan pellet mill is supplying pellets (2012).
• Multiple sources of wood pellets in bulk are available from the Pacific Northwest and from
Canada by truck or barge to Seward.
• Nome Community recently received 2 containers of pellets at $300/ton delivered.
All Feasibility Study and Analysis documents for the project have been included with this
application.
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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 existing heating systems in all three Seward schools are fuel-oil fired hydronic boilers as
follows:
o Elementary School -2 Kewanee KW 4.5-220-X oil boilers, 1704MBH, 23 years old, 83%
efficiency (est.), thermal generation
o Middle School -2 Hurst FB300-30 oil boilers, 1876 MBH, 7 years old, 83% efficiency
(est.), thermal generation
o High School -2 Cleaver Brooks oil boilers, 1983 MBH, 29 years old, 83% efficiency (est.),
thermal generation
These existing systems can remain in place to provide reliable back-up for a pellet boiler system
as needed.
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.
Understanding of Existing Energy Resources
ISER data indicates an overall trend line of rising prices for fossil fuel oil over the last twenty (20)
years. Fossil fuel oil is a commodity and, in the railbelt region, KBPSD’s reduction in fuel oil
demand is expected to have no impact on local or regional prices.
Biomass fuels tend to be locally or regionally produced, as transportation costs are higher than
liquid fuels. Infrastructure for transport of woody biomass fuels is currently being developed in
Alaska. Development of the Commercial and Industrial market for woody biomass fuels will
strengthen the developing industry for renewable and locally-sourced fuels. Conversion of school
heating systems will provide “anchor tenant” customers for Alaskan pellet providers.
Alaska DNR, Division of Forestry, along with other native and private forestry-consulting firms
has published numerous biomass resource assessment documents for Alaska. The consensus
is that annual biomass growth tonnage in Alaska is several times the tonnage that would be
needed to produce energy for every building in Alaska.
The U.S. Forest Service estimates that there are 4.81 million hectares (11.87 million acres) of
land in Alaska not reserved in parks and wilderness areas capable of producing at least 1.38
cubic meters per hectare/year (20 cubic feet per acre-year) of wood. Thus, assuming an
average higher heating value of the average Alaska species mix at 7.98 GJ/m3 (204,000
Btu/CF), Alaska forests are capable of producing at least 52.97 million GJ/yr. (48.4 trillion
Btu/yr.)—equivalent to approximately 1.32 billion liters (350 million gallons) of #2 diesel per
year, or 12 times the annual diesel consumption for power generation in rural Alaska
communities.
- Crimp, Colt, Foster; Renewable Power in Rural Alaska:
Improved Opportunities for Economic Deployment; 2007
Although the above excerpt of the Crimp, Colt, Foster report talks about power production, the
applicability to thermal uses is obvious. By any reasonable accounting, Alaska grows more than
enough woody biomass to sustainably provide fuel for the majority of schools in the State.
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Impact on existing energy infrastructure and resources
All existing heating systems will remain in place to provide peak load and provide reliable back
up for a pellet boiler system as needed. No changes are expected to the existing energy
infrastructure, other than new controls that designate heat from the heat loop as the primary
source of heat and heat from existing energy infrastructure as back-up.
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 is fossil fuel oil. The fossil fuel oil heating market is well established and
mature. It is unlikely that the emerging use of woody biomass for heating fuel will have a
significant effect on the fossil fuel industry in Alaska for many years.
Conversely, the establishment of markets for renewable woody biomass fuels will enhance the
development of the biomass fuel industry, including the development of biomass densification
facilities for producing pellets, pucks and briquettes, as well as woodchip suppliers and
distributors.
The primary impact on customers will be energy savings, and some modifications to job
descriptions for maintenance staff.
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
A description of renewable energy technology specific to project location
The technology is a Wood Pellet hydronic heating system, fired by standard commercial wood
pellets. Separate pellet boilers could be installed in each school building, and integrated into
each school’s existing hydronic heating system. A single larger boiler, installed at the High
School and connected by buried insulated piping, could also connect to all three schools and be
integrated into each heating system. A single boiler would require only one fuel storage hopper
and less overall maintenance. Phase III, Final Design, will determine the best project
configuration at the site.
Optimum installed capacity
Phase III will determine Optimum installed capacity. The pre-feasibility study calculated the
required boiler capacity (RBC) during the coldest 24-hour period to be 2.09 MMBTU. This is
different from the Optimum installed capacity.
Anticipated capacity factor
The project is expected to supply up to 90% of the School’s typical heat load.
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Anticipated annual generation
The expected annual generation of a project using 1,121 tons of wood pellets is 16,281 MMBTU
of thermal generation (13.6 MMBTU per ton).
Anticipated barriers
There are no identified barriers. Wood pellet school heating systems are common and relatively
simple deployments.
Basic integration concept
The basic integration concept is a simple valve interconnection and associated controls
governing the coordination of the existing and new heating systems.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land
ownership and access issues.
The project will be situated near the high school on Kenai Peninsula Borough owned property
which has been designated for school purposes and is available for KPBSD under delegated
authority to implement this project with full access and site control. A letter from the Kenai
Peninsula Borough Land Management Officer is included with this proposal.
KPBSD is aware of and assumes all liabilities arising from the ownership and operation of the
project. KPBSD will not sell, transfer, encumber, or dispose of any of its interest in the facilities
constructed with AEA grant funding during the economic life of the Project without prior written
approval of the Authority. (See attached letter.)
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
Permits for construction and operation will be researched in Phase III Design, and applied for as
required. KPBSD will research permits that may be needed from Federal, State, or Local
governments, such as EPA, DEC, State Fire Marshal, and other applicable agencies.
List of applicable permits and approvals
Fire Marshall approval is required by the State of Alaska for project operation. The Fire
Marshall’s office uses existing published standards as code in Alaska.
The recommended equipment is UL listed, although under certain conditions non-UL equipment
may be eligible for Fire Marshall approval. The equipment must also meet OSHA specifications.
OSHA performs the review of the mechanical and electrical safety of equipment.
The project will also need to operate in accordance with Federal Requirements, such as the
MACT Tailoring Rule, currently under review. Project emissions are expected to operate well
below the threshold of any Federal permitting. All Federal regulations will be met.
The project must meet all code standards and permits required by the Kenai Peninsula Borough
Code.1
1 http://library.municode.com/index.aspx?clientId=13259
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Anticipated permitting timeline
Applicable permits will be identified and completed in Months 1-3; Final review of plans will occur
in Month 4; and the project will be inspected by the Fire Marshall’s office prior to startup in Month
14. See Project Milestones timeline.
Potential barriers
There are no identified potential barriers.
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
Environmental issues will be researched in the Phase III Design stage, and KPBSD will comply
with applicable state and local environmental standards, including without limitation: applicable
laws for the prevention of pollution, management of hazardous waste, and evaluation of
environmental impacts.
It is not anticipated that any significant environmental issues will need to be addressed. Pellet
boilers have proven to be extremely clean burning, and are usually more efficient than both wood
chip or cordwood systems. Per AEA requirements, grant funds will not be used for environmental
investigation, removal or remediation of contamination, remediation of existing facilities or
properties, or any other environmental matters, unless specifically provided in the Grant
Agreement.
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
KPBSD is requesting $1,367,464 from AEA. KPBSD has committed $47,770 in cash and in-kind
contributions as match to the project. Funding will be provided from the District’s general fund.
Phase III project cost is $100,000. Phase IV project cost is $1,267,464. The total cost of the
project is $1,415,234.
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Requested grant funding
The requested grant funding is $1,367,464.
Applicant matching funds – loans, capital contributions, in-kind
The applicant has pledged matching funds of $47,770.
Identification of other funding sources
There are no other funding sources identified at this time.
Projected capital cost of proposed renewable energy system: $1,415,234.
Projected development cost of proposed renewable energy system: $407,542
Costs were estimated based on a combination of industry standards, similar projects in Alaska
and Montana, and the Pre-FS and WERC Review. Transportation costs and local expertise are
some of the additional considerations incorporated for this rural Alaskan project.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for
the purpose of reporting impacts of projects on the communities they serve.)
Estimated O & M costs for the heating system are $25,200 per year. In addition, KPBSD is
aware of the Authority’s requirements for Performance / O&M reporting for five (5) years after
the project completion. KPBSD is prepared with staff and funding resources from its General
Fund to provide these reports, which will include:
1) A detailed description of Project operations and maintenance issues
2) A detailed description of Project performance, energy output, and fossil f uel savings
3) Recommendations for improvements on similar future projects.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
N/A
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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.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 1,121 tons of wood pellets, commercially available
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 2 grid, leave this section blank)
i. Number of generators/boilers/other N/A. This project is part of the Railbelt.
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. This project is part of the Railbelt.
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. This project is part of the Railbelt.
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] 134,000 gallons of #1 fossil fuel oil
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
2 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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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]
1,121 wood pellets
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] Up to 16,281 MMBTU
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons] 1,121 tons wood pellets
iv. Other
Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system $25,200
d) Annual fuel cost $336,300 (1,121 tons at $300/ton)
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 120,600 gallons
iii. Transportation
b) Current price of displaced fuel $3.78/gallon
c) Other economic benefits
d) Alaska public benefits
Power Purchase/Sales Price
a) Price for power purchase/sale n/a
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.31
Payback (years) 15
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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). Wood Pellets
• Efficiency of the biomass technology. 87% or higher.
• Thermal or electric application. Thermal.
• Boiler efficiency. Fuel Oil – estimated 83%; Wood pellet – estimated 87%.
• Displaced fuel type and amount. 120,600 gallons fossil fuel oil #1.
• Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture
percentage. 1,121 tons wood pellets (8% MC).
• Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage. N/A
• Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource? N/A. Wood pellets are commercially available.
• Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known? N/A. Wood pellets are commercially available.
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
• Potential annual fuel displacement (gallons and dollars) over the lifetime of the
evaluated renewable energy project
The Seward schools (Elementary, Middle and High school, and pool) use 134,000 gallons of
diesel fuel oil. The proposed 2MMBtu pellet boiler is estimated to use 1,121 tons of wood pellets
to offset 90% (120,600 gallons) of diesel. Over the lifetime of the project, it is expected to offset
up to 120,600 gallons of fuel oil #1 at a value of $7.56 million ($3.78 per gallon at current 2012
prices).
• Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
There are no revenue streams, only projected savings.
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• Potential additional annual incentives (i.e. tax credits)
There are no additional annual incentives currently identified. Revenue from tax credits or
carbon credits has not been identified and is not included in this proposal.
• Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
There are no additional annual revenue streams currently identified.
• Discuss the non-economic public benefits to Alaskans over the lifetime of the project:
Given the inexorable cost escalation of fossil fuels, the benefits of converting to renewable fuels
will include cost reductions and stabilization, while lowering toxic stack emissions and potential
hazards of fuel spills.
The State of Alaska gains actual value and energy independence when its natural resources are
used inside Alaska, or refined to add value before export.
Economic localization is the benefit derived from using local fuel and local labor to provide heat
for public buildings. The money circulates inside the communities and the State, strengthening
local and regional economies.
This is a high profile project that will demonstrate the viability and clean-burning benefits of
heating schools with renewable fuels. Seward will become a model for other renewable energy
conversions.
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
The proposed business structure is the ownership, operations, and maintenance of a biomass
heating system by KPBSD. No alternative business structures have been identified or considered.
Financing the maintenance and operations for the life of the project
The project will be financed through the KPBSD School Board budgeting process. The School
Board will ensure designated funds are set-aside for the O&M of the heat loop. Operational
savings and the District’s State funding allocation will ensure the continued stream of monies to
finance the maintenance and operations for the life of the project.
Designating a certain portion of the District’s State allocation to utilities is a process already
undertaken by KPBSD on an annual basis.
Identification of operational issues that could arise.
Many operational issues could arise. All could be mitigated by good system design, proper
planning, and proper operations and maintenance.
Fuel sourcing could be challenging at first. This issue could be addressed through proper project
analysis and a long-term fuel delivery contract.
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There could be parts failure within the plant, such as electronic components (pumps, controls,
motors, fans, etc.), combustion components or other project components. Usually, this issue
could be addressed by repair or replacement of the part.
Proper operations and maintenance could be an operational issue. KPBSD has a clearly defined
management structure. As evidenced by this application, the management team at KPBSD plans
to own, operate, and maintain the wood heating system. The demonstrated management team at
KPBSD and demonstrated interest in a wood heating system suggests proper O&M will be
undertaken. O&M trainings for wood energy maintenance for staff are available.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
The existing school staff and building maintenance processes will be expanded to include
operations of the biomass system. In many other schools (Montana, Vermont, etc.), this process
has been effective in reducing overall costs while maintaining staff levels and building comfort
levels.
The cost savings from the existing purchases of fuel oil will more than offset the costs of wood
pellet fuel, and operations and maintenance of the new system. Existing systems will remain in
place as backup. In other systems, as mentioned above, the life of existing systems is extended
by their limited use.
Commitment to reporting the savings and benefits
KPBSD is committed to providing annual savings and benefit reports to Alaska Energy Authority,
consistent with all grant requirements.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
KPBSD has prepared for this award by investigating the project possibilities through
contracted studies, and through preparing a grant application in 2011 and 2012. The project has
been ready to proceed since 2011. KPBSD plans to proceed with work on the project
immediately once the grant is approved.
KPBSD has accomplished a number of project tasks.
Phase I and Phase II Reconnaissance and Feasibility Study were completed in 2011. A
“Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in Seward
Alaska” and an “Assessment Review and District Energy Concept Evaluation” have already been
completed and are submitted with this application. Both reports are included as attachments
with this application.
• The Preliminary Feasibility Study (Pre-FS) titled “Preliminary Feasibility Assessment for
Wood Pellet Heating at KPBSD Schools in Seward, AK,” (Dan Parrent, USDA Forest
Service) was created in July 2011, which evaluated the potential for heating the Seward
school facilities with pellet-fired boilers.
• An analysis of the Pre-FS was conducted, titled “Seward, AK Project Assessment Review
and District Energy Evaluation” (USFS Wood Education and Resource Center- WERC).
The WERC Report reviewed the conclusions of the Pre-FS report, and discussed the
possibility of adding the City-owned Assisted Living Center to the school District heating
system, and of adding a steam turbine to produce electrical power.
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These reports provide the analysis necessary to move into Phase III and IV, Final Design and
Construction. In July, 2011, Kenai Peninsula Borough School District Board of Education held a
regularly scheduled meeting, at which the biomass project evaluation was discussed. Mr. Daniel
Parrent of the USDA Forest Service spoke to the Board regarding the possibility of heating the
Seward area schools with wood pellets and to apply for grant funding through the USDA Forest
Service and the Alaska Energy Authority to pay for the necessary mechanical systems. He
reviewed the possible cost savings to the District. Mr. Jones recommended the Board authorize
the administration to take actions necessary to move forward with the application for funding
through the Renewable Energy Fund Grant offered by the Alaska Energy Authority. The Board
voted unanimously to move ahead with the project. The first attempt to develop this project was
applying to AEA’s REF Round V grant process. Although the project was accepted and
recommended for full funding, it did not move ahead due to the total program budget determined
by the Governor’s office. (Meeting minutes are on file with the District office and are available
upon request.)
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.
Local support has been offered to this project on many levels, from residents to the municipality,
and from Borough and the School Board. KPBSD is not aware of any opposition regarding this
project. Several letters of support have been included with this application as follows:
o KPBSD School District: A letter of full support for this project has been submitted from
Superintendent Steve Atwater, stating the benefits that this project will bring to the school
District. The letter also states the District’s commitment to cash and in-kind match.
o KPBSD Board of Education: As explained above in Section 7, ‘Readiness’ the KPBSD
Board of Education supported and authorized this application, and to move ahead with
the project. A letter of support is included which verifies this support. The letter also
states the District’s compliance with grant requirements, and is signed by the KPBD
Board President.
o The Kenai Peninsula Borough verifies with an attached letter that the property for this
project has been made available for KPBSD under delegated authority to implement this
project with full access and site control for this project.
o The City of Seward has actively promoted energy efficiency in their municipal buildings
throughout the community, including the Alaska SeaLife Center. In their attached letter of
support, they reiterate their concerns for increasing costs of energy and their desire to
make renewable energy options more attractive for public use buildings. They see this
project as an opportunity to promote that effort and are fully in support of this proposed
project for the Seward schools.
o Alaska SeaLife Center strongly supports the District’s AEA Round V application and has
submitted a letter of support expressing their appreciation for the opportunity offered by
AEA, which promotes renewable energy use in Alaska.
o Resurrection Bay Conservation Alliance has expressed their support in an attached
letter outlining their appreciation for efforts being made by the District to provide cost
savings to the community of Seward. They also noted their hope for this project – to set a
standard for the state of Alaska and rural Tribal communities to replicate the effort.
o Community members are also personally interested in the project, especially because it
will explore the potential for cost savings and cost stability for renewable heating fuels in
the community. A letter is included from Seward resident and Borough Assembly
member, Sue McClure, expressing support for this effort.
A letter of support is also attached from Lynn Hohl, (who is a community member and
also a Kenai Peninsula Board of Education Member), which expresses her personal
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support for the project. Ms. Hohl outlines six bulleted reasons which detail the benefits of
the project to the District, including that (if funded) the Seward schools would be the first
in the Kenai Peninsula District to benefit from a renewable energy source.
o Qutekcak Native Tribe has expressed their support for efforts towards cost savings to
schools, and has provided a letter of support explaining measures they are also taking
towards creating a greener workplace and cleaner environment.
o Forest Service Seward Ranger District has submitted a letter of support that explains
how this project aligns with many of the steps that they have taken towards a smaller
carbon footprint.
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.
KPBSD is requesting $1,367,464 from AEA. KPBSD has committed $47,770 in cash and in-kind
contributions as match to the project. Funding will be provided from the District’s general fund. The
total cost of the project is $1,415,234.
The KPBSD has invested in the project by participating in the Pre-FS and the WERC Project
Assessment Review and District Energy Evaluation.3 This process established the feasibility of the
project and justified the next steps for the District (Final Design and Construction).
KPBSD will continue to invest its resources as needed to complete the project and for O&M that will
be required after the construction and integration has been completed.
The following Grant Budget outlines the milestones for this project. The spreadsheet below
summarizes the costs for each Phase of the project, the total AEA request, the KPBSD cash and in-
kind contribution, and the total project cost.
Applications should include a separate worksheet for each project phase that was identified in section
2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitting,
and Construction). Please use the tables provided below to detail your proposed project’s budget.
Be sure to use one table for each phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator, Shawn
Calfa, at scalfa@aidea.org.
3 These activities were paid for by the USDA Forest Service.
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 26 of 30 7/3/2012
Budget
Categories: PHASE III PHASE IV AEA Request Grantee Match TOTAL PROJECT
Direct Labor &
Benefits $7,985 $22,464 $30,450 $37,770 $68,220
Travel & Per
Diem $2,000 $2,000 $4,000 $0 $4,000
Equipment $0 $900,000 $900,000 $0 $900,000
Materials &
Supplies $0 $0 $0 $10,000 $10,000
Contractual
Services $89,515 $225,000 $314,514 $0 $314,514
Construction
Services $0 $115,000 $115,000 $0 $115,000
Other $500 $3,000 $3,500 $0 $3,500
PROJECT
TOTALS $100,000 $1,267,464 $1,367,464 $47,770 $1,415,234
Milestone or Task
PHASE III
Design and Permitting
Anticipated
Completion
Date
RE-
Fund
Grant
Funds
Grantee
Matching
Funds
Source of
Matching Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
1. Project scoping and
contractor solicitation
completed
Month 2 $10,000 $1,000 District General
Fund $11,000
2. Permit applications
completed as needed Month 3 $10,000 $958
District General
Fund $10,958
3. Final environmental
assessment & mitigation
plans completed
Month 3 $5,000
$882
District General
Fund $5,882
4. Resolution of land
use, right of way issues
completed
Completed
$0
$0
5. Permitting, rights-of-
way, site control
completed
Month 4 $2,000
$1,425
District General
Fund $3,425
6. Final system design
completed Month 4 $33,000 $3,160
District General
Fund $36,160
7. Final cost estimate
completed Month 5 $10,000 $1,335
District General
Fund $11,335
8. Updated economic
and financial analyses
completed
Month 2 $15,000
$1,360
District General
Fund $16,360
9. Power or heat sale
agreements in place N/A $0 $1,190
District General
Fund $1,190
10. Final business and
operational plan
completed
Month 3 $15,000
$1,640
District General
Fund $16,640
TOTALS $100,000 $12,950 $112,950
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 27 of 30 7/3/2012
Budget Categories:
Direct Labor & Benefits $7,985 $12,950
District General
Fund $20,935
Travel & Per Diem $2,000 $2,000
Equipment $0 $0
Materials & Supplies $0 $0
Contractual Services $89,515 $89,515
Construction Services $0 $0
Other $500 $500
TOTALS $100,000 $12,950 $112,950
Milestone or Task
PHASE IV
Construction
Anticipated
Completion
Date
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
1. Design and feasibility
requirements completed Month 7 $82,464 $3,885
District General
Fund $86,349
2. Bid documents
completed Month 7 $32,000 $2,500
District General
Fund $34,500
3. Vendor selected and
award in place Month 8 $50,000 $2,000
District General
Fund $52,000
4. Construction Month 13 $975,000 $15,435
District General
Fund $990,435
5. Integration and
testing completed Month 14 $64,000 $5,000
District General
Fund $69,000
6. Decommissioning
old systems N/A $0 $0 $0
7. Final acceptance,
commissioning and
start-up complete
Month 14
$42,000 $2,000
District General
Fund $44,000
8. Operations reporting Month 14 $22,000 $4,000 $26,000
TOTALS $1,267,464 $34,820 $1,302,284
Budget Categories:
Direct Labor & Benefits $22,464 $8,385 District General
Fund $47,284
Travel & Per Diem $2,000 $2,000
Equipment $900,000 $900,000
Materials & Supplies $0 $10,000 District General
Fund $10,000
Contractual Services $225,000 $225,000
Construction Services $115,000 $115,000
Other $3,000 $3,000
TOTALS $1,267,464 $18,385 $1,302,284
Renewable Energy Fund Round 6
Grant Application
AEA13-006 Grant Application Page 28 of 30 7/3/2012
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 29 of 30 7/3/2012
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Kenai Peninsula Borough School District (KPBSD)
Regular Election is held: The Kenai Peninsula
Borough School Board consists of nine members
with alternating three year terms. Each year three
members are elected on the first Tuesday of
October.
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Dave Jones Assistant
Superintendent
Laurie Olsen Director of Finance
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Steve Atwater Superintendent
Grantee Contact Information:
Mailing Address: 148 N. Binkly St.
Soldotna, AK 99669
Phone Number:
907-714-8888
Fax Number:
907-262-9645
E-mail Address:
davejones@kpbsd.k12.ak.us
Federal Tax ID #:
92-0030923
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 30 of 30 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 Steve Atwater
Signature USE ORIGINAL AND CHECK PAGE NUMBERS
Title Superintendent of Schools
Date //////