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HomeMy WebLinkAboutAfognak Biomass complete package w resRenewable Energy Fund Round 6 Grant Application AEA 13-006 Application Page 1 of 24 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 2 of 24 7/3//2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Afognak Type of Entity: Tribal Government Fiscal Year End: December 31 Tax ID # 92-01640005 Tax Status: For-profit or non-profit ( check one) Mailing Address 323 Carolyn St Kodiak, AK 99615 Physical Address same Telephone 907-486-6357 Fax 907-486-6529 Email Melissa@afognak.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Melissa Borton Title Tribal Administrator Mailing Address 323 Carolyn St Kodiak, AK 99615 Telephone 907-486-6357 Fax 907-486-6529 Email Melissa@afognak.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 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 24 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) Afognak Biomass Feasibility Study 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. Kodiak Island – City of Kodiak and road system communities 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. Lat: 57.7934954 Long: 152.393707 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Kodiak Island Borough 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 X Reconnaissance Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. To conduct a study on the feasibility of installing a biofuel system at the Kodiak High School to provide fuel/heat to the building, decrease the overall waste going into the Kodiak landfill and provide a biofuel education service through the Kodiak High School Career and Technical Program. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 4 of 24 7/3//2012 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.)  We believe there would be multiple benefits from this project; first by reducing the fuel costs to the Kodiak High School and the overall diesel consumption in Kodiak. This is a borough owned/maintained facility that is run through the public school district. Kodiak has only one high school with approximately 800 students from the entire Kodiak road system, which would give this project widespread public benefit. In addition, the proposed biomass system has lower emissions than diesel. Second, Kodiak is currently undertaking a landfill expansion project. Our landfill has reached capacity and the borough has contracted to increase the size of the landfill. This project would assist in reducing the amount of waste going into the landfill and saving the recycling center the cost of shipping recyclable materials off-island. In addition, there is still a large portion of the population that doesn’t recycle. We believe the benefits of this project, and if planned efficiently, could increase the amount of recycling on Kodiak Island. Finally, Kodiak as a community is nearing 90% renewable energy for electricity. Discovering if other renewable resources are feasible in Kodiak is the next natural step. However, we’ll be more self-sufficient if we train our young people to maintain these facilities instead of bringing on folks from off-island. The school district is currently in the final planning stages of creating curriculum to accompany a small wind generator that will provide a training opportunity for the high school students. If this biofuel system gets installed at the high school it would complement their renewable energy education program by providing instruction in biofuels. 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. NVA is requesting $170,974.00 to complete Phase I and Phase II of this project. At this time we are requesting the entire amount from the Alaska Energy Authority. During each of the phases, NVA will actively pursue other funding to augment the project. Community Power Corporation (CPC) has agreed to provide technical support to NVA as needed throughout the life of the project and provide on-site training in maintaining and operating the system once installed. 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. $170,974.00 2.7.2 Cash match to be provided $0.00 2.7.3 In-kind match to be provided Unsure at this time 2.7.4 Other grant applications not yet approved $0.00 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $170,974.00 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 5 of 24 7/3//2012 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) $1,633,974 2.7.7 Estimated Direct Financial Benefit (Savings) $ $ 197,625 (Excluding cardboard recycle cost benefits. Those are unknown at this time.) 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.) Unknown at this time. Economic evaluations must be completed. We anticipate benefits from reduced recycle costs, improved air emissions, and reduced diesel fuel transportation costs. 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. NVA has had their current office structure since May 1998. In that time we have grown our staff from a single person office to our current 11 positions. The Tribal Administrator provides day-to- day management of the operations of the Tribe as well as overall supervision. The Program Administrator provides supervision for all of NVA’s cultural and education programming and the Office manager provides supervision over the general office operations. NVA has experienced no audit findings since our first audit in 2005; we maintained a detailed financial accounting system with a two-person finance department. The Finance Manager provides direct oversight over the accounting system and ensures staff adheres to policy. Since 2005, NVA has developed our capacity for providing excellent project management. From 2005 to 2009, we managed a multi-million dollar environmental clean-up project at the Afognak Island Coastal Defense Site through the Native American Land Environmental Mitigation Project with assistance from the Army Corps of Engineers. In addition, since inception we have managed over $8 million in government grants and continue to have an excellent rating with our grantors. While NVA has the capacity to provide overall management for this project and facilitate relationship building at the local level, our staff currently lacks the technical expertise to provide initial oversight for the proposed biomass system. As such, NVA would contract with Community Power Corporation (CPC), the manufacturers of the proposed biomass system. CPC is capable of providing all of the technical oversight needed for Phase I and II of this project and has agreed to mentor the Tribe in taking over the management should the system get installed. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 6 of 24 7/3//2012 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 Formally Commit NVA Resources to Project  Planning discussions 7/2013 9/2013 Contract Community Power Corporation technical experts to support the reconnaissance and feasibility phases  Draft and sign contract for negotiated scope of work 8/2013 9/2013 Pre-Kickoff Discussions With Key Stakeholders  Obtain Formal Buy-in from Borough/School District  Obtain Formal Buy-In from Current Recycling Entities 9/2013 11/2013 Site Assessment  Assess basic site configuration, school facility heating system, gas plumbing integration, electrical connections.  Assess the end use of the heating gas, quantity required, min/max range,  Base heating load assessment  Determine method of heat delivery required? 1/2014 4/2014 DECISION POINT 1  Is the site location technically feasible? If “no,” could the site be redeveloped to accommodate biomass system? If “no,” discontinue. If site location is viable, proceed. 4/2014 4/2014 Assess Identified Feedstock Material  Determine woody material species (if required)  Assess cardboard resources (types, volumes, etc.)  Assess miscellaneous paper resources (types, volumes, etc.)  Assess Feedstock quality  Assess annual feedstock availability  Identify critical supply risks 4/2014 6/2014 Assess Potential Feedstock Sources  Coast Guard Feedstock Assessment, Others 4/2014 6/2014 DECISION POINT 2  Is there adequate feedstock volume, quality, and availability? If “no,” could additional sources be obtained? If “no,” discontinue. If adequate feedstock is available, proceed. 6/2014 6/2014 Assess Logistics  Determine the transportation needs.  Determine process/storage needs (if any)  Estimate personnel needs  Estimate management needs 6/2014 7/2014 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 7 of 24 7/3//2012  Estimate operation and maintenance needs Identify Required Permits and Potential environmental issues  Identify permit requirements and land ownership requirements.  Determine known environmental impacts that could prevent project development 7/2014 9/2014 DECISION POINT 3  Perform economic and environmental analysis to prove viability of the project. Discontinue if current economics and environmental conditions do not support further efforts and development. 9/2014 9/2014 Meeting with key stakeholders  Deliver result of initial site investigations and reconnaissance 9/2014 10/2014 Establish formal agreement with feedstock sources  Obtain agreement from recycling entity to supply feedstock material  Obtain agreement from Kodiak Borough to establish methods of collecting additional feedstock supplies.  Obtain formal agreement from school district for project development. 10/2014 11/2014 DECISION POINT 4  Agreement achieved? If “yes,” proceed. If “no,” discontinue. 11/2014 11/2014 Public Meeting(s) (if required)  If required, attend public hearing(s) to answer questions about the project. 11/2014 1/2015 Conceptual Design Kickoff Meeting  Extend agreement with Community Power Corporation for conceptual engineering design. 1/2015 1/2015 Concept Design Review with Key Stakeholders  Review Design details with all key stakeholders. 1/2015 3/2015 Planning Meeting for Detail Design and Implementation Phase  Develop preliminary detail design development action plan 3/2015 5/2015 PROJECT STOP  Apply for additional project funding or identify other sources of funding. 5/2015 5/2015 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. NVA Personnel Melissa Borton is the Tribal Administrator for NVA; she has held this position since June of 2006. Prior to NVA she was a department manager for the Kodiak Area Native Association for over ten years. Ms. Borton has successfully managed and administered approximately $20 million in federal grants since 1993. She provides the overall day-to-day management of the Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 8 of 24 7/3//2012 Tribe is the primary liaison to the Tribal Council and provides supervision of all staff. *resume attached. Project Coordinator: this position is vacant and would be hired solely to supervise the local operations of this project and be the liaison between the community, the Tribe and CPC. Contract Personnel Community Power Corporation (CPC) is a wholly owned subsidiary of the Afognak Native Corporation. CPC, based in Littleton, CO has a staff of scientists and engineers who are experts in the field of biomass gasification. NVA intends to utilize the technical expertise of CPC’s engineers for the reconnaissance, feasibility, and conceptual design phases if successful in obtaining grant funding. It will be critical to have expert review of site conditions and feedstock sources to verify the technical and environmental feasibility of the project. At this point in time, NVA has no contractual arrangements with CPC but NVA has received basic technical information about CPC’s BioMax® gasification systems. At present, it appears the BioMax® systems are well aligned with the goals and scope of this project. Third-Party Engineering Review NVA expects that a third-party engineering review and/or support will be necessary to address state and local requirements to assess mechanical, electrical, land, safety and permitting requirements. At present, the level of support required from a third-party firm is unknown and will be investigated during the conceptual design phase. Partners NVA has received support letters from Ken Reinke, Executive Director of Threshold Recycling and Stewart McDonald, Superintendent of the Kodiak Island Borough School District. Both organizations have agreed to be partners with NVA on this project. The details of the partnership responsibilities will be designated in the early stages of this project if awarded. 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. Section 3.2 highlights the critical milestones that must be achieved in order to prove–or disprove–this projects viability for continued progression and investment. NVA will communicate the results of each ‘Decision Point’ milestone in a report, supported by all technical, economical, and environmental details and data necessary for completion of that milestone. It is expected that a reconnaissance and feasibility study will reveal unknowns that cannot be identified before project kick-off. NVA will highlight the unknowns to keep the Authority informed of any potential creep in scope, schedule or budget. NVA and our technical experts will review the milestones and develop an actionable, detailed project management plan. The project management plan will address man-hour requirements, deliverables, and date requirements. The project manager will monitor the completion of each sub-task and required deliverables to adhere to the projects scope, schedule and budget. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 9 of 24 7/3//2012 3.5 Project Risk Discuss potential problems and how you would address them. Social Recycling and renewable forms of energy are not widely used by traditionalists. Traditionalists tend to look upon renewables as unproven and unreliable forms of energy. The Kodiak population has had a long history of exposure to both hydroelectric energy, and more recently, wind energy. We feel that the community of Kodiak, with its history of renewable energy use, will embrace our project since it offers to reduce the amount of waste in our landfills and the level of diesel exhaust in our air. As with many social risks, communication is critical. Political Non-traditional activities in a public environment tend to create questions in public populations, leading to political backlash if activities are not properly communicated. It is NVA’s intent to work with the school district and borough representatives, as key project stakeholders, since they will most likely receive many inquiries from local citizens. This project requires cooperation from all to achieve maximum public benefit. Economic A key component of this reconnaissance and feasibility study must prove that both the waste management services and the end gas product can be delivered to the point of use in economical manner such that the public achieves a benefit. Biomass feedstock (cardboard, paper, and wood waste) must be collected and processed effectively and efficiently. Due to current recycling practices in Kodiak, it is expected that feedstock sources can be redirected at a lower cost than current efforts require. Technological Biomass gasification systems have been identified. One system, developed by CPC, has proven operations in-field. However, as with all equipment, it must be maintained and operated appropriately to achieve maximum benefit. CPC trains owners to maintain and operate its product, and the typical skills required are readily found in personnel with automotive mechanics training, a skill-set readily available on Kodiak. Other risks include feedstock contamination. As the incoming fuel to a gasifier, feedstock material quality must be controlled to minimize cross- contamination with unknown substances to maintain optimum emissions standards. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 10 of 24 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. Energy resource is biomass in the form of cardboard, miscellaneous paper, and wood, estimated to be generated in 707 tons per year, respectively.  Pro: Biomass, as a source of energy, has many advantages over other renewables such as solar, wind and tidal. Biomass can be utilized 24 hours per day, 7 days per week, providing a highly reliable, reasonably price energy for its customers. It does not require the sun to shine, the wind to blow, the waves to break or similar activities to lower facility costs and reduce the facilities carbon footprint.  Pro: Biomass sources can be located based on customer needs and are less dependent on geographical positioning to deliver a source of energy. Other forms of energy require optimum placement and environmental conditions to deliver solar, wind or tidal energy.  Pro: Biomass can be used as method of managing waste in remote communities.  Pro: Biomass synthesis gas can offset the use of diesel, propane, and other petroleum based products.  Pro: Biomass synthesis gas is clean burning.  Con: Requires a continuously available source of biomass in an economical manner.  Con: Requires storage of feedstock material to ensure clean and dry resources are available as needed. Storage facilities can be large, depending on local conditions and deliveries.  Con: Aesthetics can be disagreeable to some people. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Currently the Kodiak High School operates three diesel fired HB Smith series 28 boilers installed in 1966. The burners model power flame C4-OA HBS-18, 30 gph. Kodiak recently bonded to renovate and add to our high school, with this major renovation, new boilers are on the horizon. If funded, we believe the timing of the feasibility study will work perfectly with the preparation for purchasing new boilers. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 11 of 24 7/3//2012 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. As a user of diesel fired boilers, the Kodiak School District relies on the singular source of heat for the school buildings. Implementing a biomass gasification system would require the installation of a duel fuel boiler such as the natural gas and diesel fired boilers available on the market. NVA proposes utilizing one of these systems, supplemented with synthesis gas, to offset the use of diesel. The Kodiak School District has indicated that one of the schools is in dire need of upgrading its obsolete boiler system so the timing for the installation of a duel fuel boiler system is ideal. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The school utilizes a diesel boiler system. The diesel is acquired through competitive bidding based on quantity consumed. Since biomass will offset the consumption of diesel, economic factors may increase the cost per gallon of diesel purchased since a biomass system should not completely replace the use of diesel. 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 Renewable Technology Description NVA proposes the use of proven downdraft gasification technology that has the capability to convert onsite or nearby waste streams and/or residues such as wood chips, nut shells and briquetted dry and wet waste streams (cardboard, paper, cartons, spoiled produce and food scraps from commissaries, exchanges and feeding operations) into power, heat and cooling. Gasification is a thermo-chemical process that converts carbon-rich, biomass feedstocks into a clean syngas containing equal amounts of hydrogen and carbon monoxide, a small amount of methane and the balance nitrogen. Proprietary systems, such as those developed by Community Power Corporation, are fully automated systems that use software to precisely control the material flow, gasification, gas cooling and filtration to produce extremely clean syngas. Unlike thermal energy derived from incineration of organic feedstocks, syngas is a clean burning renewable fuel gas that can be used as a substitute for gasoline, natural gas, fuel oil or propane. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 12 of 24 7/3//2012 Additionally, syngas can be further processed into a number of chemical products including synthetic diesel, jet fuel and more. Optimum Installed Capacity Modern gasification systems have varying levels energy producing capacities, and typical offer up to 80% availability. The optimum gasification system for this project will be identified through the reconnaissance and feasibility phase. The goal is to assume as much of the project school base heating load as possible. Anticipated Capacity Factor The anticipated capacity factor will need to be determined as part of the reconnaissance and feasibility phase of this project. Delivery Methods Heating energy will be delivered through the direct injection of syngas into a dual fuel boiler system, similar to natural gas or propane systems. Feedstock material will be delivered in a manner best suited to the site conditions and economics of the project location, as determined through reconnaissance and feasibility studies. 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. NVA proposes to locate the system on the high school property nearest the boilers. The Kodiak High School is in agreement. However, if awarded, we would need to approach the borough assembly to get final approval of locating our system on their property. Early discussions with borough staff seem favorable, but final decision will be up to the assembly. 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 At this time, NVA expects that both the Kodiak Borough and Alaska State permits will be required for air emissions and land use. As a public entity, it is expected that local permits may be required to for various hot-work and cold-work activities such as plumbing and electrical work. The reconnaissance and feasibility phase will identify all required permits. We anticipate up to 90 days lead time for each permit. Renewable energy sources often encounter some level of incompatibility with state or local guidelines as most were not written with renewable energy technologies in mind. As such, NVA will need to identify state or local guidelines which may impact permitting of this project. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 13 of 24 7/3//2012 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 At present, land development constraints and aesthetics are the only known potential issues. As a biomass system could actually improve air emissions as opposed to the current, all-diesel system, environmental, habitat and aviation considerations is not expected to be a concern. The reduction of landfill waste is also a positive benefit for the Kodiak Borough. The reconnaissance and feasibility phases must address these considerations for further discussion. 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 At this point, we are estimating that the total project cost would be $1,633,974. We are requesting $170,974 for Phase I and Phase II from the Alaska Energy Authority. The remaining costs are estimates at this time: Purchase of gasification system: $950,000; shipping to site, site prep, tie-ins, etc: $450,000; O&M: $28,000; Annual fuel cost: $35,000. Throughout Phase I and Phase II we will research and identify other potential grant sources and identify new and potential partners. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 14 of 24 7/3//2012 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.) O&M costs are estimated to be $28,000 annually based on materials and labor expenses of $20,000 and $8,000, respectively. 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  NVA intends to sell synthesis gas to the Kodiak Borough/Kodiak School District for the purposes of providing heating service.  Power Sales Price (synthesis gas) estimates are based on a diesel equivalent price of $1.50/gal.  ROR targets are 15% to 20% for the customer. (based on CPC’s private consumer projects) 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. Last year, the Kodiak community including the Coast Guard base recycled 707 tons of fiber waste. 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 Three boilers ii. Rated capacity of generators/boilers/other 3.6MMBtu/hr @ 36.4gph, each iii. Generator/boilers/other type N/A iv. Age of generators/boilers/other 46 years v. Efficiency of generators/boilers/other 68-72% 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.    Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 15 of 24 7/3//2012 b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Data unavailable at this time ii. Annual O&M cost for non-labor Data unavailable at this time c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] N/A ii. Fuel usage Diesel [gal] N/A Other N/A iii. Peak Load N/A iv. Average Load N/A v. Minimum Load N/A vi. Efficiency N/A vii. Future trends N/A d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 155,000 gal ii. Electricity [kWh] N/A iii. Propane [gal or MMBtu] N/A iv. Coal [tons or MMBtu] N/A v. Wood [cords, green tons, dry tons] N/A vi. Other N/A Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] Biomass source providing up to 1.4MMBtu/hr (Based on producer gas generated at 300m^3/hr; could add additional blocks if required.) b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] N/A ii. Heat [MMBtu] 10.1 x 10 9 Btu/yr 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] Possibly, but unknown at present iv. Other Cardboard [rate of 700 tons/yr, for a BioMax® 100] Project Cost a) Total capital cost of new system $950,000 [gasification system] b) Development cost $450,000 (shipping, site prep, tie-ins, etc.) Cost of feedstock collection unknown at this time. c) Annual O&M cost of new system $28,000 (excluding collection point O&M, if required) Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 16 of 24 7/3//2012 d) Annual fuel cost $35,000 ($50/ton feedstock cost estimate) Project Benefits a) Amount of fuel displaced for i. Electricity N/A ii. Heat 85,000 gallons per year (@ 80% availability over entire year) iii. Transportation N/A b) Current price of displaced fuel $3.85/gallon (based on average 2011 price) c) Other economic benefits Cardboard Disposal/Recycling Savings = $unknown (waste management benefit unknown at present d) Alaska public benefits $197,625 in fuel + “other” (Total would be the sum of b & c, fuel benefit based on equivalent diesel purchase at $1.50) Power Purchase/Sales Price a) Price for power purchase/sale $126,144.00 @ $1.50/gal equivalent of diesel Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.176 Payback (years) 9 years (excluding benefit from cardboard recycle/disposal costs) 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). Briquettes (approx.. 1.5” to 2” dia)  Efficiency of the biomass technology: Community Power Corporations downdraft gasification system is highly efficient, converting approximately 98% of all feedstock into synthesis gas. Actual cycle efficiency varies by site location, and method of capturing and transferring heat energy.  Thermal or electric application: Thermal application  Boiler efficiency: Gasifier is 98% efficient in thermochemical conversions  Displaced fuel type and amount: Diesel fuel, 84,096 gallons displaced per year, per each BioMax 100 unit. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 17 of 24 7/3//2012  Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. BioMax 100 will process approximately 700 tons/year. Moisture content ranges from 40% acceptable for wood chips and cardboard. Entering moisture contents are 7 to12%.  Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage: No wood sources are anticipated to be used at project commissioning, although the resource is available.  Ownership/Accessibility: Who owns the land and are their limitations and restrictions to accessing the biomass resource? The Kodiak Borough/School District owns the land for the BioMax® site placement. The cardboard sources are actively recycled at this time. No known restrictions exist.  Inventory data: How much biomass is available on an annual basis and what types (species) are there, if known? According to local recyclers and Coast Guard base info, 707 tons of fiber waste was recycled last year. 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  Fuel Displacement : 840,960 gallons (over 10 years) equal to $3.2MM @$3.85/gal  Anticipated Annual Revenue: $126,144, based on $1.50/gal equivalent diesel cost provided as producer gas.  Incentives: Renewable projects are known to benefit from tax credits. The reconnaissance and feasibility phase studies will help determine potential benefits.  Additional Revenue Stream: It is expected that the waste management activities will generate additional revenues, but the economics of these activities are not known at this time. These studies are part of the reconnaissance and feasibility phase.  Non-economic benefits: Community Power Corporations patented gasification systems, meet or exceed every air emission standard in the U.S., with exception of Southern California. The displacement of diesel with synthesis gas (a.k.a. producer gas) is a cleaner burning alternative to diesel combustion and is considered a carbon-neutral source of energy. Furthermore, remote communities like Kodiak Island rely on local landfills to dispose of waste. Other times, waste is shipped off island. In either scenario, diverting wastes away from landfills helps protect the local environment, and eliminating the need to ship waste off island saves energy by reducing barging activities. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 18 of 24 7/3//2012 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 Business Structure NVA proposes create a business focused on waste management and energy services. Threshold Recycling, Kodiak Island Borough and Kodiak Island School District have been approached to discuss this concept. Initial discussions of support are positive. If successful, NVA would seek to do the following: 1) partner with the recycling entity to source the cardboard volumes currently under management, 2) collaborate with the Borough to encourage additional recycling from the local resident, a resource that is largely untapped, and 3) collaborate with the Borough and School District to install a biomass gasification system for conversion of the collected biomass. In essence, NVA seeks to manage waste and waste disposal by working across the biomass energy value-chain. With the high cost of liquid fuels and the logistical costs of recycling and waste disposal, NVA intend to build a strong economic argument for this project. Financing Throughout the feasibility study, NVA will research and pursue viable financing options which include: potential grant sources, BIA loan guarantee options, corporate financing, etc. No final decisions or applications will be submitted until feasibility is decided. Operational Issues Cardboard feedstock resources can vary based on the level of consumer activity and recycling efforts. It is essential to understand the volume and frequency of resource availability to establish the proper collection and processing system. A clean, contaminant free, feedstock results in air emissions of the highest quality. Accordingly, staff must be trained to identify potential feedstock contaminants. Hardware breakdowns can and will occur. Maintaining a strict preventive maintenance schedule will minimize these occurrences. The skill-set required for the maintenance of processing and biomass equipment is similar to that of automotive technicians, a skill available in the community. All critical components required as spares should be inventoried to optimize system availability, estimated to be 80%. Operational Costs Operational and maintenance expenses are estimated to be $28,000 per year for the gasification system. This includes all scheduled maintenance downtimes and labor costs. Additional operational costs are related to a collection and processing activities. The logistical requirements and level of activity are not known at this time but are expected to consist of vehicle maintenance, shredder maintenance, and briquette equipment maintenance. Commitment to Reporting NVA is very familiar with completing and complying with grant reporting requirements. If awarded, NVA would submit all required reports in a timely fashion. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 19 of 24 7/3//2012 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. This is a relatively new project idea for NVA, to date all we have done is connect with potential partners, identify potential viability through research resource availability and prepare this grant proposal. NVA intends to continue to seek other funding opportunities but hasn’t completed any others to date. SECTION 8– LOCAL SUPPORT 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. We don’t anticipate too much opposition to this project. Kodiak currently has two recycling operations one non-profit and one for-profit. We have spoken to and garnered support from the non-profit recycler (Threshold), the for-profit organization we will develop a relationship if the project gets awarded. In addition, we have received written support from our local school district but didn’t think we had enough time to discuss this as a potential project with the borough. The Borough will be a major player if awarded because they are the building and land owners; however, the school district’s budget pays for utility costs and would realize the greatest benefit from this project. SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. At this time, NVA is seeking $170,974.00 from the Alaska Energy Authority to complete Phase I and Phase II. Throughout these phases, NVA will actively research and seek out other potential funding sources. CPC has agreed to provide needed technical assistance and on-site training should the project prove feasible, however, the exact value of the in-kind is unknown at this time. 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 20 of 24 7/3//2012 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. ) $ $ $ Formally Commit NVA resources to project 9/2013 $251 $ $251 Contract CPC to support phase I and phase II 9/2013 $12,190 $ $12,190 Hire NVA staff to complete project 9/2013 $28,164 $ $28,164 Pre-kickoff Discussions with key stakeholders 11/2013 $0.00 $ $0.00 Decision Point 1 4/2014 $12,190 $ $12,190 TOTALS $52,795 $$52,795 Budget Categories: Direct Labor & Benefits $22,464 $ $22,464 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $200 $ $200 Contractual Services $22,350 $ $22,350 Construction Services $ $ $ Other Indirect $7,781 $ $7,781 TOTALS $52,795 $ $52,795 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) $ $ $ Assess Identified feedback material 6/2014 $3,520 $ $3,520 Assess potential feedstock 6/2014 $3,520 $ $3,520 Decision point 2 6/2014 $9,096 $ $9,096 TOTALS $16,136 $$16,136 Budget Categories: Direct Labor & Benefits $5,616 $ $5,616 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $8,338 $ $8,338 Construction Services $ $ $ Other Indirect $2,182 $ $2,182 TOTALS $16,136 $ $16,136 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 21 of 24 7/3//2012 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. ) $ $ $ Assess Logistics 7/2014 $5,280 $ $5,280 Identify required permits 9/2014 $5,280 $ $5,280 Decision point 3 9/2014 $13,644 $ $13,644 TOTALS $24,204 $$24,204 Budget Categories: Direct Labor & Benefits $8,424 $ $8,424 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $12,506 $ $12,506 Construction Services $ $ $ Other Indirect $3,274 $ $3,274 TOTALS $24,204 $$24,204 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. ) $ $ $ Meeting with key stakeholders 10/2014 $3,520 $ $3,520 Establish formal agreement with feedstock sources 11/2014 $3,520 $ $3,520 Decision point 4 11/2014 $9,096 $ $9,096 TOTALS $16,136 $$16,136 Budget Categories: Direct Labor & Benefits $5,616 $ $5,616 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $8,338 $ $8,338 Construction Services $ $ $ Other $2,182 $ $2,182 TOTALS $16,136 $$16,136 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. ) $ $ $ Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 22 of 24 7/3//2012 Public Meetings 1/2015 $12,340 $ $12,340 Conceptual design kickoff 1/2015 $12,341 $ $12,341 Conceptual design review with key stakeholders 3/2015 $12,341 $ $12,341 Planning meeting for detail design and implementation phase 5/2015 $12,341 $ $12,341 Project stop 5/2015 $12,341 $ $12,341 TOTALS $61,704 $$61,704 Budget Categories: Direct Labor & Benefits $16,848 $ $16,848 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $37,200 $ $37,200 Construction Services $ $ $ Other Indirect $7,656 $ $7,656 TOTALS $61,704 $$61,704 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