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Home My WebLink AboutAEA Round 6 application AVCP RHA 9-2012Renewable Energy Fund Round S tow, Grant Application �'ENERGY AUTHORMY SECTION 1 -s APPLICANT INFORMATION Name (Name of utility, 1PP, or government entity submitting proposal) AVCP Regional Housing Authority Type of Entity: Private non profit Fiscal Year End: Sept 30, 2012 Tax ID # 92-0048664 Tax Status: —For-profit or --X—non-profit check one Mailing Address Physical Address PO Box 767 405 Ptarmigan Road Bethel, AK 99559 Telephone Fax 1 Email 543-3121 543-2270 1 ron@avcphousing.org 1.1 APPLICANT POINT OF CONTACT 1 GRANTS MANAGER Name Title Allen Joseph Grants Coordinator Mailing Address PO Box 767 Bethel, AK 99559 Telephone Fax Email 543-0079 543.2270 ajoseph@avcphousing.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 or No 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 or No 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 or No application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant or funds for the benefit of the general public. If no please describe the nature of No the project and who will be the primary beneficiaries. AEA13-006 Grant Application Page 2 of 21 713//2012 Renewable Energy Fund Round fi Grant Application immu, �;ENERGYAUTHORTTY 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) AVCP RHA Wood 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. Project will be located at AVCP Housing campus in Bethel, AK. The beneficiaries will include AVCP Housing and its 60-plus staff, new AVCP Housing regional headquarters, the 34-bed AVCP Aviation Dormitory, 32-unit Bethel Low Rent Apartment Complex, 16-unit Lulu Heron Assisted Living Facility, 20-bed Construction Worker Bunkhouse, AVCP RHA's Maintenance Facility, Warehouse and Satellite Office Buildings. 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 wrap 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. 60048'14.47" N, 161 °47'27.38" W., at 405 Ptarmigan Street, Bethel, AK. 2.2.2 Community benefiting - Name(s) of the community or communities that will be the beneficiaries of the project. Bethel. However, savings from reduced fuel use and expense will impact 50 communities in the Yukon-Kuskokwim delta area that have AVCP RHA as their Tribally Designated Housing Authority (explained more below at #2.5 - Project Benefit). 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction Reconnaissance X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. AEA13-006 Grant Application Page 3 of 21 713/12012 Renewable Energy Fund Round fi a Grant Application i 111111111111r, ENERGY AUTHORITY AVCP Housing intends to construct a Wood Biomass Heating System plant within its campus to reduce high energy costs. The wood biomass Beating system is expected to supplant 85% of the estimated heat usage. The current diesel fuel cost is $6.781gal. in Bethel. Without the benefit of a biomass heating system, it is estimated we will be using 67,766 gallons of heating fuel annually beginning in the winter of 2012-2013. 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.} The pre -feasibility study of AVCP RHA's Wood Biomass Heating System idea (ATTACHMENT A) indicates that AVCP Housing would initially save $103,264 annually and $3,467,771 in 20 years. However, the cost of fuel at the time of the study was $6.28. Now the same fuel costs $6.78. So the actual fuel savings could be as much more. AVCP Housing serves 50 communities (25,000 pop.) in the Y-K Delta, and intends to use its annual savings into its housing service/construction programs and build more homes. Biomass fuel is a renewable energy source. 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. Amount of funds needed to build the AVCP RHA Wood Biomass Heating System is $3,399,387. We are seeking the majority of funds from AEA to help build this plant. AVCP Housing will pitch in $250,000 in cash match and in -kind contributions. 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. $3,149,387.00 2.7.2 Cash match to be provided $ 74 943.00 2.7.3 In -kind match to be provided $ 175,057.00 2.7.4 Other grant applications not yet approved $0 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $ 3,399,387.00 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 $3,399,387.00 including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $3,467,771 (20 yrs) 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 4Section 5.) SECTION 3 — PROJECT MANAGEMENT PLAN AEA13-006 Grant Application Page 4 of 21 713112012 Renewable Energy Fund Round S �•■� Grant Application OW- ' ENERGYALFrHORfiY 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. Joe Killen, VP of Development, will manage and oversee the construction of the Wood Biomass Heating System. Mr. Killeen's resume is attached (ATTACHMENT B). Mr. Killeen, whose background is in architecture, design, construction and development administration has been with AVCP Housing since 1993, and has been involved in many construction projects undertaken by AVCP Housing the 16-unit Lulu Heron Assisted Living Facility, 19-unit Hooper Bay Multi Family Affordable Housing Project, and New AVCP RHA Regional Headquarters. 3.2 Project Schedule and Milestones Please fill out the schedule be#ow. 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 Grant Award Grant Agreement signed 711113 7115113 Final designs drawn ACE designs at 100% 711113 7/20/13 Bid phase and award Bidding process for materials, electrical and mechanical. 7/15/13 811113 Materials shipped Materials shipped by the last barge. 911113 9/15/13 Materials received, construction starts Materials received and construction starts. 5115/13 5/31 /14 Biomass boiler in operation Boiler tested and put into operation. 5/15114 5/31/14 Grant closeout Grant closeout 6/30114 8/31114 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, Describe services you will use to accomplish the project. Include any partnerships or commitments AEA13-006 Grant Application Page 5 of 21 713112012 Renewable Energy Fund Round 6 aw, Grant Application GiiiiiilliillE, ENERGY AUfHO Y 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. AVCP Housing will use its own grant, accounting, development, and construction staff in this project. The utilization of force account construction has allowed AVCP Housing to hire locally as much as possible. Having been in the construction arena since 1976, we also have all our own equipment and resources. Larsen Consulting Group developed the initial blueprints for the Wood Biomass project, and we will have the firm complete the final design for the Wood Biomass/Central Heating Plant Upgrade. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. The project will be developed on the campus of AVCP Housing, where oversight of the project won't be a problem. Mr. Joe Killeen will be in supervision of the project, and will be assisted by Project Planner Abraham Palacios, whose number is 543-3121 ext. 247, and email address at Abraham—Palacios@avcphousing.org. 3.5 Project Risk Discuss potential problems and how you would address them. A potential problem is escalating costs of materials, goods and shipping. All our projects are budgeted as if everything will go perfect — delivery of materials, shipping and even the weather. Budgets are done 1-2 years before the actual project, and costs could go up higher by the time materials are ordered and shipped. We can only try to do things perfectly and on schedule. . 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. We tried the wind turbine idea, but the FAA (turbine height) and local power company (kWh buy back) issues are preventing us from successfully pursuing such a project. The pros of the AVCP RHA Biomass project is that we will use a relatively cheap fuel (wood pellets) for a heating source, which is expected to lower AVCP Housing heat operation costs considerably. The cons of the biomass project is that the fuel for an entire year will have to be shipped to Bethel in huge quantities every summer by barge and manual labor will involved to maintain the burners continually. The pre -feasibility study document done by CTA Architects Engineers is attached (ATTACHMENT A), as well as the design document (ATTACHMENT C). No permits are needed for our project. AEA13-006 Grant Application Page 6 of 21 713!l2012 Renewable Energy Fund Round 6 • Grant Application ..'ENERGYAtJTHORrrY 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 current existing heating system at AVCP Housing and the facilities to be serviced by the Wood Biomass Heating System in the future are as follows: 16-unit Lulu Heron Assisted Living (built 1998) -Boiler 1 - 764,000 BTUIhr output -Boiler 2 - 764,000 BTUIhr output -DHW - 199,000 BTUIhr output Condition of boilers is good. Office120-bed Bunkhouse -Boiler 1 - 145,000 BTUIhr output -Boiler 2 - 145,000 BTUIhr output Condition of boilers is good. 32-unit Building A-E (built_1988� -Boiler 1 - 786,000 BTUIhr output -Boiler 2 - 786,000 BTUIhr output Condition of boilers is fair, 12-unit Housing Addition [built 1992} -Boiler 1 - 561,000 BTUIhr output -Boiler 2 - 561,000 BTUIhr output -DHW 1 - 315,000 BTUIhr output -DHW 2 - 315,000 BTUIhr output Condition of boilers and ❑HWs are good. Warehouse 1 -Unit Heater - 185,000 BTUIhr output Condition of heater is good. Warehouse 2 -Unit Heater - 185,000 BTUIhr output Condition of heater is good. New Regional Headquarters Office [built 2012] -Boiler 1 - 1,023,000 BTUIhr output -Boiler 2 - 1,023,000 BTUIhr output Condition of boilers is excellent. 4.2.2 Existing Energy Resources Used Y Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the protect may have on existing energy infrastructure and resources. The Bethel area has only wind and diesel for energy generation. Other resources — geothermal, hydro, solar, etc. — are non-existent or haven't been proven as viable energy sources in the area. Biomass development is in its infancy, and if AVCP Housing develops its biomass project, it will be one of the first such projects. The Pre -Feasibility Study indicates the Biomass project, when operational, will offset as much as 85% of AVCP RHA's energy use, so it should have a huge AEA13-006 Grant Application Page 7 of 21 7131l2012 Renewable Energy Fund Round 6 ilw Grant Application OWE) ENERGY AUTHORrrY impact on the company's annual heating expenses by lowering them. 4.2.3 Existing Energy Market Discuss existing energy use and Its market. Discuss impacts your project may have on energy customers. Bethel's main energy use is diesel -based. The impact of developing a woad -fired heating system can only be positive for the 48 low-income households in AVCP RHA's Lulu Heron and Bethel Low Rent Apartments, with a rent decrease possibility; for the 30-bed Aviation Dormitory, rent would not be as high for the company (AVCP Inc.) running the dormitory; and for the 20-bed Construction Worker Bunkhouse, daily or overnight charges could be lowered. In any case, if rents and charges are not lowered, there would be reduced justification for their increases. 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 This proposed system is for a biomass boiler to provide 6.198 billion btu of net heat annually. The peak load capacity is to be 3109 MBH. Optimum installed capacity is to be 8.854 billion btu per year to offset 85% of the heat generation from diesel fuel use. A wood pellet fired boiler sized at 50% to 60% of the facility peak load will typically accommodate 85% of the boiler run hours. The anticipated biomass annual generation of heat is 8.854 billion btu gross. At 70% efficiency, the net output is to be 6.198 billion btu. An anticipated barrier is the necessity to purchase 540 tons of wood pellets in quantity for an entire year. The pellets will have to be shipped from the continental United States or from Canada. When the pellets arrive, they will have to be properly stared, and storage is planned for the fuel. The biomass heating system will meet approximately 85% of the annual heating energy use of the AVCP RHA campus. The existing heating systems will be used for the other 15% of the time during peak heating conditions, during times when the biomass heating system is down for servicing, and during swing months when only a few hours of heating each day are required. The hot water from the biomass boiler will be distributed with the use of pipes in utildors to 12 buildings in the existing heating system of the AVCP RHA campus. 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 entire project will be sited on property owned by AVCP Housing. No issues are expected for land ownership. AEA13-006 Grant Application Page 8 of 21 7/31/2012 Renewable Energy Fund Round 6 , �41w) o Grant Application 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 There are no permit requirements for this biomass boiler project from the State of Alaska and the federal government. 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 There are no environmental concerns or barriers anticipated since the project is on developed property of AVCP Housing. The recommendation is to have the emission stack 1.5 times the height of the tallest roofline of the adjacent building. Wind dispersion, boiler size, and the rural site are reasons why this project is not required to have emission controls. There are no permit requirements from the State of Alaska and the federal government. But, there will be federal reporting requirements that apply to biomass, coal and oil fired boilers. 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 The total anticipated project cost for this biomass boiler system is $3,399,387. The requested grant funding is 3,149,387. AVCP Housing will provide $250,000 in in -kind and matching funds. There are not any other funding sources being applied to this project. The first phase is for design, budgeted at $319,063. The AIE designs at 95% and the cost estimation of January 2011 are budgeted as in -kind for the amount of $175,057. The A/E AEA13-006 Grant Application Page 9 of 21 7l31l2012 Renewable Energy Fund Round fi a■OWD Grant Application it Q.I. ENERGY AUTHORITY designs (at 100%) is budgeted at $115,000. The in -kind of $175,057 and the estimated designs cost of $115,000 total $290,057. The 10% overhead is $29,006. The second phase of this project is for construction. It is budgeted at $3,080,324. The cash match is $74,943 which is applied toward material costs. The requested amount for this phase is $3,005,381. The budget for this phase is for labor, insurance and bonding fees, travei and per diem for the project superintendents, equipment use, bid processing, supplies and fuel usage, and the materials for the structure, electrical and mechanical. The net construction budget is $2,800,295, and the 10% ❑verhead is $280,029, the total for this phase is $3.080,324, The projected capital cost of $2,704,788 is for the material costs, construction labor, construction superintendent expenses, equipment use and supplies. The projected development cost of $694,599 is for the AIE designs, insurance and bonding, as built drawings, any inspection fees, and the 10% overhead fee. 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.) The annual operation and maintenance of the heating system with the biomass boiler is estimated at $328,000. The wood pellet fuel cost is $248,347, the heating fuel for 15% of the heat source is $68,918, and the electrical use is estimated at $7,500. The estimated labor cost of the first two years is $3,200 per year, and then after that the estimated labor cost is $1,600 per year. The maintenance and operation expense of the biomass boiler heating system will be part of the present maintenance budgets for the AVCP RHA campus facilities. The first year's 57,601.1 gallons ❑f displaced fuel is expected to have a value of $390,535.46 at $6.78/gallon. The economic evaluation summary has the first year having an operating savings of $103,264. The savings from the heating expenses will make it more economical to maintain and operate the heating system of the AVCP Housing campus. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer{s}fcustomer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Pro osed rate of return from grant -funded project NIA 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Pl ease fill out the f oi-m provided below Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 540 tons of wood pellets to order per year. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) AEA13-006 Grant Application Page 10 of 21 713112012 Renewable Energy Fund Round 6 Grant Application a) Existing Energy Generation and Usage i =W" ja�� IIIIIIIIIIIIIIIIIIIIIIIED ENERGY ALFTHORrrY Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 16 total: 12 boilers and 4 water heaters. ii. Rated capacity of generatorslbol€ers/other 145 to 1023 MBH iii. Generator/boilers/other type Boilers and water heaters, using fuel oil. iv. Age of generatorslboilerslother 2ea=25yr.; 2ea=17yr.; 8ea=14yr.; 2ea=8yr.; 2=1yr. v. Efficiency of generators/boilers/other 80% average for 16 boilers and heaters. b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 20,880.00 ii. Annual O&M cost for non -labor 2,900.00 parts, plus $459,453.48 fuel nil. Total $462,353.48 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 [I(Wh] NIA ii. Fuel usage Diesel [gal] 67,766 gallons Other iii. Peak Load 5182 MBH iv. Average Load v. Minimum Load vi. Efficiency 80% vii. Future trends d) Annual Beating fuel usage (fill in as applicable) i, Diesel [gal or MMBtu] 67,766 gallons II. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal (tons or MMBtu) v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Biomass: 3109 MBH (Wind, Hydro, Biomass, other) [kW or MMBtulhr] b) Proposed annual electricity or heat production (fill in as applicable) , i. Electricity [kWh] ' The Railbeltgrid 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. AEA13-006 Grant Application Page 11 of 21 713I12012 Renewable Energy Fund Round fi �� MIND Grant Application �. ENERGY AUTHORITY ii. Heat [MMBtu] 8.854 Billion Btu gross. 6.198 Billion Btu net. c) Proposed annual fuel usage Mill in as applicable) L Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] Wood Pellets, 540 dry tons. iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 57,601.1 gallons. iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price 2, 704, 788.00 694, 599.00 $ 10,700.00 But wlfuel $327,965 per yr. $317,265 (248,347 pellets, 68.918 fuel oil) $ 390,535.46 (at $6.781gallon) a) Price for power purchase/sale NIA Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.02 Payback (years) 17 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) ■ What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). Pellets ■ Efficiency of the biomass technology. 85% AEA13-006 Grant Application Page 12 of 21 MH2012 Renewable Energy Fund Round S Grant Application Thermal or electric application. Thermal Boiler efficiency. 70% 4f 41111111W.) ENERGY AUTHORITY + Displaced fuel type and amount. Diesel oil. 57,601.1 gallons/yr. • Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. 540 tons of wood pellets, 7% MC. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. NIA • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? AVCP Housing owns the land and there will be no limitations or restrictions. • Inventory data. How much blomass is available on an annual basis and what types (species) are there, if known? AVCP Housing will obtain its annual wood pellet needs from Lower 48 sources until local sources become available, cost-effective and reliable. 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) • Potentiaf additional annual incentives (i.e. tax credits) Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non -economic public benefits to Alaskans over the lifetime of the project. The direct fuel displacement is 57,601.1 gallons per year, currently valued at $390,535.46. The 20 year total of the direct fuel displacement is 1,152,022 gallons at the current un-inflated cost of $7,810,709.16. With the consideration of the expense for the 15% of the heat from fuel oil, the electrical usage expected, and the operation and maintenance of the biomass bailer, the first year's operating savings is $103,264. The accumulated cash flow with this operating savings at 20 years is expected to be $3.467,771. The savings at 30 years is expected to be $6.570,870. The usage of a renewable energy source is beneficial to all Alaskans and the wor#d. Wood pellet fuel is from debris materials of lumber processing. The use of the debris is an economic advantage, and red uctian of debris, for the lumber industry. Ash from the biomass boiler can be used as fertilizer. The usage of a biomass boiler in Bethel, Alaska, will create an opportunity for local gardeners, a fast growing segment in Bethel, to have a good supply of fertilizer from heat generation - SECTION 6- SUSTAINABILITY Discuss your plan for operating the completed project s❑ that it will be sustainable. AEA13-006 Grant Application Page 13 of 21 7/31/2012 Renewable Energy Fund Round 6 �;� ..11111D urant MIJIMUMIlan I AU__'Aa.il�1II:[sl,:tA�'1 Include at a minimum: • Proposed business structures} 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 AVCP Housing, with a 36-year history of providing housing and housing -related programs, has extensive operations and maintenance staff to support its real properties located throughout the City of Bethel and the region it serves. The AVCP Housing campus has a maintenance shop operated by a supervisor and two mechanics. AVCP Housing provides capital replacement fund accounts for its assets. The biomass boiler system would be added to the accounts to program for future capital expenditures for maintenance or upgrades. The present fuel -fired boilers and the biomass boiler will be maintained and operated by the campus maintenance shop staff. Mr. Gary Vanasse, Maintenance Supervisor, holds an Alaska Dept of Labor Boiler Operator License #00116619 (ATTACHMENT D). The displaced fuel cost will enable AVCP Housing to purchase 540 tons of wood pellets annually. With shipping costs included the estimated annual cost is $248,347. The supply of wood pellets will be stored in a silo on site at the AVCP Housing campus. Heavy equipment is available in the City of Bethel for movement of storage vans to accommodate the filling of the wood pellet fuel silo. The fuel oil for the 15% of the heating source will be purchased locally as needed. AVCP Housing would provide annual reporting of operating costs, capital investment, and realized savings as required by AEA. SECTION 7 — READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and haw 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. In October 2011 AVCP Housing submitted a Statement of Interest in developing wood -fired heating projects with the University of Alaska Cooperative Extension Service. The submittal was chosen and the University provided AVCP Housing with a Pre -Feasibility Assessment for Integration of Wood -Fired Heating Systems revised report of August 13, 2012 done by CTA Architects Engineers (ATTACHMENT A). AVCP Housing had cost estimation and design plans drawn by its contractor Larsen Consulting Group, Inc. The design plan at 95% submittal was completed on 11/2/2011. Also, a January 2012 Biomass Report was made. Using January 2012 Biomass Report, a funding request was submitted to the Alaska State Legislature via Senator Lyman Hoffman and Representative Bob Herron, along with another Capital Improvement Project request ($2.5M AVCP RHA Aviation Dorm). Although the Aviation Dorm request was successful, the request for the Biomass Boiler Funding was not. With the expected grant timeline starting from July 1, 2013, AVCP Housing will be prepared to have the final designs done and the bid phase started in July 2013. The construction materials, electrical, and the mechanical supplies will be shi2ped in the last bare in September 2013. AEA13-006 Grant Application Page 14 of 21 713112012 Renewable Energy Fund Round 6 ,1111111111111D Grant Application �COED ENERGYAL)THORITy Once the barge arrives in September 2013, the biomass boiler system can be constructed and completed by May 2014. 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. AVCP Housing's Board of Commissioners adopted a resolution approving the project in August 2012. Letters of support were provided by AVCP Inc., YKHC, Napaimute Traditional Council (renewal energy development leader in the region) and Orutsaramiut Native Council (local tribal council) when AVCP Housing pursued Alaska Legislative funding for the project. (They are in Attachment E.) There has been no opposition to the project, oral or written. SECTION 9 -- GRANT BUDGET Tell us haw 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 summa►y regarding.funding sources and your,financial commitment to the project. The total anticipated project cost is 3,399,387, which is being requested from AEA. Earlier efforts, in 2011-2012, at obtaining funding directly from the Alaska Legislature did not pan out. AVCP Housing invested $175,057 in developing a design plan and cost estimates. The requested grant funding is $3,149,387. AVCP Housing will provide a total $250,000 in match funds (cash and in -kind). There are no other funding sources at this time being applied to this project. The biomass boiler heating system development, along with matching, was approved by the AVCP RHA Board of Commissioners during their meeting on August 30, 2012. 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. ff 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@aides. org. Milestone or Task {List milestones based on phase and type of project. See Milestone list below. ) A&E Designs at 95% & Cost Estimate A&E Designs at 100% Anticipated RE. Fund Completion IGrant Funds Date l; I 112011 $ 17,506 CIYdF)ri925-1fY•.: i Matching I Funds: Grantee Cashlln- Matching kindlFederal Funds I Grants/Other State Grants/Other $175.057 TOTALS H $192,563.00 AEA13-006 Grant Application Page 15 of 21 7I3!l2012 Renewable Energy Fund Round 6 Gran! Application 9 4EMr—'ENERGY ALmlORITY $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -- $ $ $ $ $ $ TOTALS $144,006 1 $175,057 $319,063.00 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $115,000 $175,057 $290,057.00 Construction Services $ $ $ Other, Overhead 10% $ 29,006 $ $ 29,006.00 TOTALS $144,006 $175,057 1 $319,063A0 ._...._............. Source of { Matching Anticipated Grantee Funds: I Milestone or Task Completion RE- Fund Matching Gashlln TOTALS Rate Grant Funds Funds kind/Federal 1 GrantslOther State Grants/Other {List milestones based on phase and type of project. $ $ $ See Milestone list below. Bid Phase (materials, 7/31113 $ 2,500 $ $ 2,500 electrical, mechanical Materials shipment 9/01113 $1,559,117 $ 74,943 $1.634.060 Construction starts 9115/13 $1,000.000 $ $1,000.000 Construction complete and 5131114 $ 163,735 $ $ 163,735 biomass facility tested Grant Closeout 8131 /14 $ 280,029 $ $ 280.029 T-TALS $3,005,381 $ 74,943 $3,080,324 Budget Categories: Direct Labor & Benefits $ 909,978 $ $ 909,978 Travel & Per Diem $ 67,750 $ $ 67,750 Equipment $ 41,000 $ $ 41,000 Materials & Supplies $1.611,117 $ 74,943 $1.686,060 Contractual Services $ 95,507 $ $ 95,507 Construction Services $ $ $ Other, overhead 10% $ 280,029 $ $ 280,029 TOTALS $3,005.381 $ 74,943 $3,080,324 Milestone or Task Anticipated Grantee Source of Completion RE- Fund Matching Matching TOTALS Funds f Hate Funds Funds: AEA13-006 Grant Application Page 16 of 21 7012012 Renewable Energy Fund Round 6 tll� Grant Application !` ' ENERGYAUfHOR17Y Cashlln- kindfFederal . GrantslOther State GrantslOther [List milestones based on phase and type of project. $ $ $ See Milestone list below. $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ Contractual Services $ Construction Services $ Other $ �� TOTALS $ , - Q►n 19 Anticipated RE- F4 ! Milestone or "Task Completion Grant Fu Date {List miestones based on phase and type of project. $ See Milestone list below. $ $ $ $ $ $ $ TOTALS $ $ 5 Budget Ca es: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ t d G F t i ti ncpaed RE- Fund m u Miles#one or Task A� Source of TOTALS Completion Gra . _Ma#chi I Maq AEA13-006 Grant Application Page 17 of 21 7�3,V2012 Renewable Energy Fund Round 6� Grant Application ANEW ENERGY AUMORMY SECTION 10 — AUTHORIZED SIGNERS FORM Community/Grantee Name: AVCP Regional Housing Authority Regular Election is held: Date: 10/13/2011 October of each year Authorized Grant Signer(s): Printed Name Title Term Sign re Jeffery Lowrey V.P. of Finance Perm. L Joe Killeen V.P. of Development Perm. Mark Charlie V.P. of Operations Perm. Ron Hoffman President/CEO Perm. I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Ron Hoffman President/CEO Perm. Grantee Contact Information: Mailing Address: PO Box 767, Bethel, AK 99559 Phone Number: (907)543-3121 Fax Number: 907 543-3933 E-mail Address: ron@avc:phousing.org Federal Tax 1❑ #: 92-0048fifi4 Please submit an updated form whenever there is a change to the above informa#ion. AEA13-006 Grant Application Page 20 of 21 713112012 Renewable Energy Fund Round 6 Grant Application ~ ENERGY AUTHORITY 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 I Ron Hoffman Signature _ Title j President/CEO Date 9,/ Zd / f AEA13-006 Grant Application Page 21 of 21 7l31I2012