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HomeMy WebLinkAboutHydaburg AEA final 9_22Renewable Energy Fund Round 6 Grant Application AEA 13-006 Application Page 1 of 29 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 29 7/3//2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Hydaburg City Schools Type of Entity: Public School Fiscal Year End June 30, 2013 Tax ID # 92-6000-703 Tax Status: For-profit or √ non-profit ( check one) Mailing Address PO Box 109 Hydaburg AK 99922 Physical Address 109 Miijuu Way Hydaburg AK Telephone 907 285 - 3491 Fax 907 285 - 3391 Email Lburch@sisd.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Lauren Burch Crystal Nelson Title Superintendent Grants Manager Mailing Address PO Box 19005 Thorne Bay, AK 99919 Telephone 907 828-8254 Fax 907 828- 8357 Email lburch@sisd.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 √ 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 29 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) Hydaburg Schools Wood Fired Boiler Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. Hydaburg School, located in Hydaburg Alaska, on Prince of Wales Island in SE Alaska 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. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Hydaburg School, Community of Hydaburg, Hydaburg Cooperative Association 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind √ 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 √ Design and Permitting Feasibility Construction and Commissioning √ Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project involves placing supplemental cord wood fired boilers in the schools. The supplemental heating system would be located at the Hydaburg City Schools in Hydaburg, AK on Prince of Wales Island in Southeast Alaska. We intend to use wood biomass to heat the school buildings, replacing diesel as the energy source. The project involves placing two Garn type wood fired boilers adjacent to the school site and running underground pipes from the wood fired boiler to plumb into the school’s heating system Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 4 of 29 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.) The benefits for this project are multifold; Hydaburg City School District will save $50,000 in heating costs the first year by replacing costly diesel with locally available wood. The energy from the wood fired boilers would reduce the cost of heating the school with diesel fuel. The project would benefit the students and staff of the Hydaburg School. Money saved on fuel costs will be reinvested in the school system. The benefit could include: higher wages for staff, more opportunities for students, improvements to the facilities, and travel for students. The project would benefit the residents of the City of Hydaburg and residents of Prince of Wales Island (POW) by reducing costs of the gym facility. The gym is used during the summer for Culture Camp, an educational cultural experience open to Native and Nonnative students. Reduced fuel costs reduce the cost of hosting the Culture Camp. Wood is available from: waste from local saw mills, USFS small sales, wood left behind on landings from large timber sales, and from small local firewood cutters. Cutting, and delivering wood is an economic benefit for Hydaburg residents or residents from nearby communities. Supplying the firewood creates a job. Fueling the wood fired boiler would create a job or add supplemental hours to a school employee. When jobs are created people stay in small communities with their families. Families keep school open and add to the economic structure of a community. Future plans include using excess waste heat from the boilers to heat a greenhouse. Again growing produce creates a job and economic benefit to small communities as well as providing healthy dietary alternatives. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The amount of funding required would be a total of $463,216 for the entire project , which includes a 15% overrun cost figured in. Hydaburg School District would commit $20,000 of in- kind and matching funds not to exceed a $20,000 cash match to complete the project. In this application we would seek $20,000 to have a final design drawn up and provide a $4000 cash and $1200 in inkind service match. Hydaburg received a grant to have a feasibility study done. The study found the use of pellets unfeasible. We would ask the AEA to re review the study. The source of the funds would come from two sources. The first source of funding for the design would be from the School District’s general fund and the final source would be from a grant from the Alaska Energy Authority. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 5 of 29 7/3//2012 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your pro ject’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $ 20,000 2.7.2 Cash match to be provided $ 4000 2.7.3 In-kind match to be provided wages $1200 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $ 25,200 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) $463,216 2.7.7 Estimated Direct Financial Benefit (Savings) $50,000 per year 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.) $ Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 6 of 29 7/3//2012 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. Jonathan Fitzpatrick, Maintenance Supervisor, for Southeast Island School District will work with Hydaburg School District to oversee the project. Jonathan has worked on two wood fired boiler projects for Southeast Island School District. He may be contacted at 907 828-8254 or jfitzpatrick@sisd.org Resume is attached. References for Jonathan are included on his resume. Jonathan will work with local maintenance personnel (Ted Peele). His resume is attached. 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 Feasibility study Completed Fall 2012 Submit AEA application for re-review of feasibility study for cord wood boiler Apply for AEA grant for an engineer to a re- review data of feasibility study for cord wood boiler instead of pellets. 8/2012 9/2012 Seek funding for Engineered Design for Cord wood boiler Submit AEA application for design and permitting for cord wood boiler 8/2012 9/2012 Funding granted for design of system Contractor solicitation if Funded by AEA begin drafting RFP/consult with AEA on draft/finalize advertisement 6/2013 6/2013 Advertise for Engineering Firm Post RFP on website/ advertise in major cities – collect submittals of bids – advertise min. of 30 days 7/2013 8/2013 Select engineering firm to design wood fired boiler system & draft bid documents Hold meeting select winning proposal for design, approval at May School Board Meeting or Special meeting held in May. Complete paperwork associated with awarding bid. Budget for match. 8/2013 8/2013 Reviews of Designs as completed Project Supervisor & Superintendent review progress, keep project and design completion on task and Engineers projected costs. On going On going Review Final Design & Permitting Review final design, feasibility, & cost estimate & bid documents, accept in – time for Round 7 AEA funding in September 1/2014 1/2014 Seek Funding For Construction Seek funding for construction of wood fired boiler system. Apply for AEA funding and other grant funding. 8/2014 9/2014 Construction Funded Construction solicitation if Funded by AEA begin drafting RFP/consult with AEA on documents finalize advertisement. Draft RFP for firewood 6/2015 6/2015 Advertise for Contractor Post RFP on website/ advertise in major cities – collect submittals of bids – advertise min. of 30 days. Review firewood bids. 7/2015 7/2015 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 7 of 29 7/3//2012 Select Contractor to construct wood fired boiler system Hold meeting select winning proposal for construction, approval at May School Board Meeting or Special meeting held in May. Complete documents associated with awarding bid. Select firewood vendor. 8/2014 8/2014 Begin Construction Project manager monitors contractor to make ensure timely completion of phases. On going 10/2014 Complete construction Finalize construction, complete check list, start up of boilers. Begin collection of data. 5/2015 10/2015 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 8 of 29 7/3//2012 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The Key personnel for the project: Jonathan Fitzpatrick will be project manager for the project. Ted Peele will be the local maintenance supervisor. Lauren Burch is the Superintendent and will have the authority to sign documentation. The accounting and bookkeeping is provided by Melody Douglas. Equipment and Services: Equipment will be put out to bid to provide the Garn Wood Fired Boilers, in the past Alaska Heat Technologies has been the successful provider of Garn Boilers for the school Projects, Dave Fredericks is the contact person who will provide services on Garn Boilers. Services: We will use the services of the school district’s maintenance crew to work on the projects. We will also use the services of AEA. We will also need the services of local ground work companies to dig the trench to lay the underground pipe from the individual building sites to the school’s boiler room. Partnerships and Commitments: Hydaburg School District and Southeast Island School District have partnered to work together to accomplish this project. Lauren Burch has partnered with Hydaburg School District to act as Superintendent of both School Districts. Lauren has a successful record of accomplishing wood fired boiler projects. Jonathan Fitzpatrick has committed to act as project manager should the project be funded. We would anticipate the help of the AEA to complete this project 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. Key Personnel for School District Lauren Burch, Superintendent Hydaburg School District, - Alternative contact Chris Page ( Administrative Assistant) Jonathan Fitzpatrick - Project Manager for Wood Fired Boiler Project Melody Douglas Business Manager for Hydaburg School District – Financial Reporting Crystal Nelson –grant coordinator – Grant procedures and paperwork Preliminary feasibility Study (Phase 1&II) Preliminary Reconnaissance; Resource Assessment completed Equipment We will purchase wood fired boilers similar to the Garn style high efficiency, low emissions. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 9 of 29 7/3//2012 Currently looking at Garn boilers or a Garn Pac We will hire a local contractor to dig the trench to run the underground piping to connect the wood fired boiler to the heat exchanger on the diesel fired boilers Phase III &IV Final Design and Permitting; and/or Construction will be applied for Engineering firm to be hired in the future if funding secured. Process for major equipment purchase or contracts are dictated by School Board Policy The School District purchases equipment, supplies and services on a competitive bidding basis when required by law and whenever it appears to be in the best interest of the district to do so. The Superintendent or designee shall establishes procedures to insure that formal advertised bids are solicited for purchases over $25,000. To ensure that good value is received for fund expended, specifications shall be carefully designed and shall describe in detail the quality, delivery, and services required ( BP 3311a) See attached board policy. Resumes – Attached. Lauren Burch, Superintendent Project Manager Alternative Contact Chris Page Melody Douglas Business Manager Crystal Nelson Grants Coordinator Jonathan Fitzpatrick – Project Manager 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 site maintenance supervisor will produce a weekly report on the status of the project. The weekly status summary will be reported to the Superintendent and summarized for the School Board’s monthly packet, this in turn will be sent to the AEA on a monthly or weekly basis as required/requested by the Alaska Energy Authority. Maintenance work logs and work orders will be maintained at the District Office. A monthly financial report is required for the School Board on all projects, along with a grant report. These reports detail expenditures and progress for the School Board and the Superintendent. A copy of the School Board minutes and the School Board packet are housed at the SISD District Office and will be available on the SISD Website for viewing Project Risk Potential Risks How Problem is addressed Barges don’t make scheduled delivery runs Delays in schedule, remind maintenance to plan ahead and stick to suggested timelines Unforeseen Price over runs due to increased fuel, metal or barge line shipping or other prices 15% overrun factored included in the budget. Delays in manufacture of the wood fired boilers Notify the wood fired boiler dealers early of dead lines for installation of boilers, order barge items early, correspond with Alaska Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 10 of 29 7/3//2012 Dealers or Garn Dealer regularly, order from Seattle for Southeast Project if was unavailable in Alaska. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 11 of 29 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 resources 4.1 The United States Forest Service (USFS) published a map and reconnaissance reports listing commercial firewood potential in 2008. The potential wood resources available to contractors on Prince of Wales Island was approximately 270 MBF (million board feet) or more at that time. According to Stan McCoy (Thorne Bay Ranger District on POW) The potential targeted goal of wood resources available to contractors on Prince of Wales Island is approximately 70 MBF (million board feet) or more per year. The POW Biofuels Coop are currently scheduled to be in production in the year 2015 -2016. They will be producing a variety of products (pellets, brick, artificial logs.) There are also other private sources of fire wood available, along with waste wood from the local sawmills. Wood is also available to small firewood producers on Native and State Forest lands. Pros: the school is located in the heart of the Tongass National Forest, the largest forest in the nation. Wood sources are located near school sites. Transportation of wood to school district is reasonable since wood sources are located nearby. Wood can be obtained and stored for up to a year or more ahead of time, ensuring a reliable, low moisture, reasonable source of energy. It is a renewable source of energy. Wood is an organic, non-contaminating, biodegradable renewable material. With the formation of POW Biofuels the cost of heating the school may drop. The materials purchased in bulk may decrease the storage space by stacking pallets of material. The pellets/bio bricks may have a dependable consistency with less variation to the quality. Cons: It takes up more room than diesel fuel, and needs a larger dry storage area. It takes time to write an RFP/advertise and oversee delivery of wood. Quality/type/size of wood may vary if not specified in RFP. Moisture content of wood may very. Locating commercial firewood suppliers takes planning time. Weather can factor in deliveries if not preplanned. It also requires more manual labor than turning a switch; it also generates ash, which needs to be disposed of. With formation of the POW Biofuels Coop sources of wood may become more competitive to the small commercial firewood producer raising the cost of cordwood. 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. Hydaburg School Existing Energy System Location # of Make Model Efficiency Age Gross Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 12 of 29 7/3//2012 of Existing Boilers Boilers output Existing MBH Gym 2 Burnam V36 69% Over 20 yrs old 886 Elem School 2 Weil McLain 878 69% Over 20 yrs old 660 High School 1 Weil McLain 976 69% Over 20 yrs old 633 The schools are currently heated by individual fuel oil boiler plants. The elementary school and gymnasium have two boilers and the high school has one. Each building has a hydronic distribution system that supplies heating water to the building. Periodic replacement of boilers and pumps will be necessary to keep the heating systems operational. • Fuel Oil Boiler Plants 1. Elementary School Boilers: Remaining service life of 25 years; no replacement. 2. High School Boilers: Remaining service life of 20 years; replace in Year 20. 3. High School Fuel Tank: Remaining service life of 10 years; replace in Year 10. 4. Gymnasium Boilers: Remaining service life of 10 years; replace in Year 10. (T.R. Miles group) 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. A Adding a supplemental wood fired boiler(s) will have little impact on the existing energy resource. Thorne Bay District provided information that the USFS goal is to probide 70 MBF of timber yearly between the Craig and Thorne Bay Districts . Trees are a renewable energy source. Removal of the trees, allows more light to hit the forest floor and other trees will grow to replace the removed trees. In the case of slab wood from sawmills, the wood fired boilers will use wood that is usually stacked and left to rot. T. Miles found that “ The major advantage of wood compared with fuel oil is the cost of the fuel. Wood burning boilers are usually first installed where chips, pallets or cordwood are free. The wood fired boiler at the Howard Valentine School in Coffman Cove on Prince of Wales Island used cordwood. Last year the school district purchased 66 cords of wood. Less than 1 percent of the available wood in the area. At Thorne Bay Wood Products [in Thorne Bay] and W.R. Jones & Son Lumber Co. [in Craig], slabs, edgings, butt cuts and buck-outs are burned in cordwood boilers to heat a process building and dry kilns. (T. Miles 4.3.1 Fuel Cost) When the USFS offers small thinning sales; a contract to remove the thinned wood could remove wood that only ends up rotting on the forest floor and generating green house gases. At this time few of the thinned trees are used. The positive impacts: cutting wood to supply the wood fired boilers in the schools will create an economic opportunity that would allow money to stay in the community. The jobs created may keep a family with children employed or supplement seasonal employment, keeping families and children in the school district. When families stay in small towns the schools remain open, schools hire local people to work at the school adding to the economic benefit of the community. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The commercial cordwood market for schools is currently limited to one major user on Prince of Wales Island – The Howard Valentine Coffman Cove School. Thorne Bay School’s wood fired boiler is scheduled to come on line in 2012 – 2013. Other major user of commercial wood Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 13 of 29 7/3//2012 products are located in Craig, in the form of chips. They currently are using a chipped product. POW Biofuels will not start producing biobricks and pellets until 2015 -2016. The Howard Valentine School in Coffman Cove, AK purchased 200 cords of wood for start up for the wood fired boiler and a total of 22 cords were purchased in 2011 for a total of 222 purchased cords. The only other users of firewood on the island are personal use users. The Hydaburg project will use approximately the same amount of cord wood as Thorne Bay is projected to use. The major projected impact this project is that it may offer the POW Biofuels Coop another market for their product if the price is comparable to commercial cord wood prices. The cordwood market for the school may offer local residents of Hydaburg, the opportunity to start up a small business. There is a steady demand for firewood with the increasing cost of fuel oil. With the projected amount of timber available (approximately 70 million board feet) the demand of an additional 200 cords of firewood a year will not have a major effect on the firewood market. The existing energy resource - diesel fuel is used to heat the school. The current price is $4.61 a gallon for diesel heating fuel. The High School used 7606 gallons ($32,395) of fuel in 2011. The Gym building used 7722 gallon of fuel in 2011 ($31,975). The Elementary building used 13, 038 gallons of fuel in 2011 ($55,544). The total amount of fuel used at the Hydaburg Schools was 28, 323 gallons or $119,913. Current fuel prices would bring the total to heat the school up to $130,569 or an increase of $10,656. Switching from diesel fuel to wood heat will have little or no negative impact on the people of Hydaburg since fuel oil for the school is purchased from an out of town distributor and the money leaves the community. If a local person could start a firewood business and keep the dollars in Hydaburg it could have a significant economic impact for residents of Hydaburg. 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 Energy Technology The school district is exploring the possibility of placing a series of Garn Wood Fired Boiler or a Garn Pac or a similar high efficiency low emissions wood fired boiler at the Hydaburg School to heat the Elementary and High school along with the gym. If there was extra capacity the school would consider pumping the waste heat to heat a green house in the future. Optimum installed/anticipated Capacity The boilers are rated at 78- 80+% efficiency, and comes in three different sizes models WHS 1500 (250,000 BTU/hr), WHS 2000 (325,000 BTU/hr) and the commercial model WHS 3200 (700,000 BTU/hr). The efficiency rating is 81% (model 1500) – 87% efficiency (model 2000). The Garn Pac has not been rated. Anticipated barriers A review of the feasibility study could find the smaller models do not have the capacity to make Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 14 of 29 7/3//2012 the project economically feasible for the project. Multiple Garn Pac units may be required, and a barrie could be that the school district can’t allocate funds to cover a very large project in one year (multiple Garn Pacs). A delay in the funding cycle could become a barrier if construction begins too late in the season to dig the trench, bury the pipe and connect the wood fired boilers to the heat exchanger in the boiler room at the school. Delaying the building of the wood storage building could cause the wood to not dry adequately and decrease the amount of Btu’s produced. Basic integration concept Wood fired boilers would be located near the school and housed in a separate building. The wood fired boilers are integrated into the current diesel heating system through a series of underground pipes, pumps and heat exchangers that transfers energy in the form of heat, stored in the liquids surrounding the burn chamber of the wood fired boiler to the diesel system. The transferred heat keeps the temperature high in the diesel system and keeps the boilers from turning on. Delivery methods A single cord wood boiler burning 60 cords per year could replace part of the fuel oil. A 20 X 20 ft building could house cordwood boiler. Cordwood could be stored undercover adjacent to the boiler. The boiler would be filled at least once a day by school personnel. 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 land for the project is owned by the Hydaburg School District. There are no potential land ownership issues. The School District supports the project. There are no access issues as the school district controls access to the site. See attached support letter in the form of a School Board Resolution. Also see attached letter from the Hydaburg Community Association supporting the wood fired boilers. 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 4.33 permits List of Permits The only permit that is required would be the Fire Marshall’s approval for a wood fired boiler at the school location. Hydaburg School District has site control. Timeline :Once the project has been funded and the mechanical drawings drafted we would proceed with the application for the Fire Marshall’s approval. The time line for Fire Marshall’s approval and permit is approximately 4 weeks after submittal of conceptual design. Barriers: A delay in the Fire Marshall granting approval of the project would cause a delay in the installation of the project. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 15 of 29 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 considerationVisual, aesthetics impacts  Identify and discuss other potential barriers 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: The school site has already been disturbed and filled with shot rock, and there are no environmental issues that would need to be addressed. Habitat Issues: The school site has already been disturbed and filled with shot rock, and there are no habitat issues that would need to be addressed. Wetlands and other protected areas: The schools site is not located in a wetland or other protected area, as the area was filled with shot rock prior to school construction. Archaeological and historical resources – There are no archaeological resources located on the school campus. Historical resources – The campus contains totem poles that are currently being restored and raised on a rotation. The totem poles are not located near the area where the wood fired boilers would be housed. Hydaburg Community Association, Native Elders, and the Hydaburg Tribal Association would all be consulted during the planning phase of the project. Land development constraints - the only constraints that would come into play is the street design, the campus is bordered by streets. The School District owns the land surrounding the possible location of the wood fired boilers.  Telecommunications interference - There are no: Satellite dishes, phone lines, cell towers or cables in the areas selected for the wood fired boilers to interfere with telecommunications Aviation considerations - The schools is located away from the seashore. All our aviation is conducted by float planes and the wood fired boilers would be located in an area that would not interfere with floatplane operations.  Visual, aesthetics impacts The location selected for the wood fired boilers will have a minimal affect on the surrounding areas as boilers similar to the Garn Boilers/Tarm must be contained inside a building.. Identify and discuss other potential barriers - Other barriers could include placing the project in an earthquake or tsunami potentials zone. Neither of these events would affect the students at the schools. The schools is located away from tsunami danger, and the wood fired boilers will be contained in its own building away from the main school, piping is underground and plumbed directly to the boiler room, where students do not have access, so broken pipes are not an issue in the event of an earthquake. Garn boilers have a high efficiency and low emissions. Emissions will not be a problem as boilers similar to Garn Boilers have met the EPA clean air requirements. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 16 of 29 7/3//2012 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 cost of the project is $463,216. The cost for this phase is $25,600 for a engineered design. We are requesting $20,000 for design. We are offering a $4000 cash match and $1200 of inkind services(wages/benefits of grant manager/Admin assistant). Hydaburg will continue to seek other funding sources. Two Garn Pac are currently $115,000 each. Shipping to Prince of Wales Island is approximately $36,000 from MN. Equipment to connect the Garns to current boilers (piping), chemicals, and upgrades the current electrical system would be approximately $38,000. Contractual services for electricians and engineering changes would add another $16,000 to the cost. We projected a cost of $20,000 to place a rock pad near the school if necessary to hold the Garn PACs. 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.) Hydaburg schools currently contracts for maintenance and repair of the existing fuel oil heating systems at a rate of $80.00 per hour. With the new system the maintenance supervisor could maintain the sytem/ All boilers require annual maintenance to clean the firebox, maintain burners, and check components. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 17 of 29 7/3//2012 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project N/A this project does not include the sale of power. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 18 of 29 7/3//2012 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. 60 -70 Million Board Feet or more. 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 5 ii. Rated capacity of generators/boilers/other 633-886 MBH iii. Generator/boilers/other type Burnham and Weil McLain iv. Age of generators/boilers/other 20 years or greater v. Efficiency of generators/boilers/other Less than 70% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] 28,367 gallons ($119,923) Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) 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 19 of 29 7/3//2012 i. Diesel [gal or MMBtu] ii. Electricity [kWh] 237,000 KWH per year (12,000 -26,000 per month) iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] Biomass b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] 1,000,000 Btu c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] 200 cords iv. Other Project Cost a) Total capital cost of new system $303200 b) Development cost $25,000 c) Annual O&M cost of new system $700 d) Annual fuel cost $40,000.00 Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat $40,000 iii. Transportation b) Current price of displaced fuel $4.61 c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 20 of 29 7/3//2012 a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 11.6 years 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only)  What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks).  Efficiency of the biomass technology. Wood Fired Boilers  Thermal or electric application. Thermal  Boiler efficiency. 80+%  Displaced fuel type and amount. Diesel  Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage.  Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. 60 -100 cords  Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? USFS/ State Forest/ Native Lands – must have a permit to sell firewood commercially, be insured/bonded and licensed and follow specific rules and requirements of land holder.   Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Annual Goal: 60-70 Million Board feet on the Craig and Thorne Bay Ranger District combined. Red Cedar, Yellow Cedar, Hemlock, Spruce and Alder.  Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 21 of 29 7/3//2012 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project Potential annual fuel displacement (gallons and dollars) over the life (25 years) of the project is: 28, 367 gallons times 25 years = 709,125 gallons or $119,913 times 25 years = $2,997, 825. There are no anticipated revenues to the school district from this project other than the savings to the general fund budget. There are no tax incentives given to school districts. There are no additions to annual revenue streams available to school districts. The economic incentives will be realized by residents of Prince of Wales Island that provide the cord wood to the school district and the land owners who sell the cordwood to the dealers. This economic benefit would be in excess of $500,000. The non economic benefits include: cleaner air from low emission from the wood burners, use of previously wasted and unharvested slash from the forest and less dependency on foreign oil. If the waste heat from the boilers is used to heat a greenhouse in the future a healthier lifestyle resulting from better produce could also be a factor. 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 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 22 of 29 7/3//2012 The yearly operating and maintenance cost will be budget for from the general fund budget. Operational issues that could arise are: failure of system parts, increasing fuel cost, aging of equipment, and turn over in staff. Again each of these financial cost can be budget for or covered on an emergency basis. Turn over in staff can be overcome by continuously training multiple staff members on the operation of the equipment. Southeast Island is committed reporting savings and benefits by monthly tracking of fuel usage, electric cost and degree days – already in place. 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. We have collected data, contacted possible vendors to get quotes, and have begun searching for other funding sources to finance this project. If funded the process of meeting the goals of the grant would begin immediately. Lauren Burch has worked with the Alaska Energy Authority on two previous projects and completed the first one successfully. The second one is well underway currently. 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. We have local support from Hydaburg Community Association and the local tribal association for the project, see letter of support. They both use the school for a variety of reasons (potlatches/funerals/ Girls and Boys Clubs/ Culture Camp). There is no opposition to the project. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 23 of 29 7/3//2012 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. The total anticipated cost of the project is $463,216. The cost for this phase is $25,600 for a engineered design. We are requesting $20,000 for design. We are offering a $4000 cash match and $1200 of inkind services(wages/benefits of grant manager/Admin assistant). Hydaburg will continue to seek other funding sources. Hydaburg School District has pledge to commit funding for the project, not to exceed a $20,000 cash match 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. 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 24 of 29 7/3//2012 PreFeasibility & Feasibility Study completed Fall 2012 $ $ $ $ $ $ Ask for re-review of feasibility study by AEA. Fall 2012 $ $ $ Seek funding for Engineered Design for Cord wood boiler 9/2012 $20,000 $4000 $24,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ 1200 $ 1200 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $20000 $4000 $24,000 Construction Services $ $ $ Other $ $ $ TOTALS $20000 $4000 $25,600 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. ) $ $ $ Contractor solicitation if Funded by AEA begin drafting RFP/consult with AEA on draft/finalize advertisement 6/2013 $ $ $500 $ $500 Advertise for Engineering Firm Post RFP web/newspapers 7/2013 $ $ $700 $ Hold Board Meetings select winning bids (prep for meeting) 8/2013 $ $ $1000 $ Review of Final docs 1/2014 $ $ $1000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ 3200 $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ 3200 $ Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 25 of 29 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. ) $ $ $ Seek Funding For Construction 8/2014 $ $16,000 $ Construction funded 6/2015 $ $ $ Advertise for Contractor 7/2015 $ $ 1000 $ Select Contractor / prepare docs 8/2015 $ $ 500 $ Begin construction prep 9/2015 $ $ $ Ongoing construction as weather permits 10/2015 $ $ $ Complete construction 5/2016 $ $ $ Finalize doc/check list/ reports $ $ 1000 $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ 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. ) $ $ $ $ $ $ Begin construction prep $ $ $ Ongoing construction as weather permits $ $ $ Complete construction $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $35390 $ 15,952 $ Travel & Per Diem $9000 $ $ Equipment $252,200 $ $ Materials & Supplies $15000 $ $ Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 26 of 29 7/3//2012 Contractual Services $36082 $ $ Construction Services $ $ $ Other $60,000 $ $ TOTALS $286845 $ 15952 $ 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. ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ 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 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 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 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 27 of 29 7/3//2012 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 28 of 29 7/3//2012 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Southeast Island School District Regular Election is held: yearly for seats in October Date: First Tuesday Authorized Grant Signer(s): Printed Name Title Term Signature Lauren Burch Superintendent N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Tracy Nix Board President 3 yr Grantee Contact Information: Mailing Address: Southeast Island School District PO Box 19005 Thorne Bay, AK 99919 Phone Number: 907 828-8254 Fax Number: 907 828 -8257 E-mail Address: lburch@sisd.org Federal Tax ID #: 92-6000-703 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 29 of 29 7/3//2012 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Signature Title Date