HomeMy WebLinkAboutMentasta MTC Grant Application5
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 18 7/1/2011
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org
Grant Application
Form
GrantApp5.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet
5.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget5.
doc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetIn
structions5.doc
Instructions for completing the above grant budget form.
Authorized
Signers Form
Authorized
signers
form5.doc
Form indicating who is authorized to sign the grant, finance
reports and progress reports and provides grantee information.
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 completion of each phase.
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
Grant Application Round 5
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Mentasta Traditional Council
Type of Entity: Federally recognized tribe Fiscal Year End: September 30th., 2011
Tax ID # 92-0069919 Tax Status: For-profit or XXX non-profit ( check one)
Mailing Address
P.O. Box 6019
Mentasta, Alaska 99706
Physical Address
1000 Mentasta Blvd.
Mentasta, Alaska 99706
Telephone
(907) 291-
2319
Fax
(907) 291-2305
Email
CoeArnold@yahoo.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Angie David – Tribal Administrator
Title: Tribal Administrator
Mailing Address
P.O. Box 6019, Mentasta, Alaska 99780
Telephone:
(907) 291-
2319
Fax:
(907) 291-2305
Email:
mentasta@hotmail.com
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
XX 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
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.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Type in your answer here and follow same format for rest of the application.
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.
Location – latitude and longitude or street address or community / communities served:
Mentasta Village is located 6 miles off the Tok-Slana Cutoff of the Glenn Highway on the west side of
Mentasta Pass, 38 miles southwest of Tok Junction. The community lies at approximately 62 .931550°
North Latitude and -143.792730° West Longitude. (Sec. 07, T013N, R009E, Copper River Meridian.)
Mentasta Lake is located in the Chitina Recording District. Mentasta Lake is located in the
continental climate zone, with long, cold winters and relatively warm summers. Temperature
extremes range from -57 to 93 °F. Average annual snowfall is 69 inches, with a total of 16 inches of
precipitation per year.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind XX 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 thermal Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility XX Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Mentasta Woody Biomass Community Facility Space Heating Project
Mentasta’ss predicament, as is the case for most of rural Alaska, is its dependence on imported
expensive petroleum heating oil for space heating of essential community facilities and
infrastructure which support the provision of valuable social, health and safety services to
residents of Mentasta. This Project will construct one centrally located woody biomass space
heating plant to substitute for expensive, imported heating oil use and will heat 80% of
Mentasta’s public facilities with high efficiency bio-mass (wood-fired) heating.
Mentasta’s community facilities are centrally located and can be serviced by one woody
biomass heating plant strategically located adjacent to Mentasta’s clustered public facilities (see
Map Attachment). Mentasta Traditional Council is requesting AEA Round 5 in the amount of
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$400,000 and will construct a single woody biomass plant to heat five (4) community facility
which is estimated to displace 10,800 gallons of imported heating oil and create local wood-
harvesting employment/small business opportunities.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
Mentasta represents a typical rural Alaskan village attempting to make the transition to the
modern world while maintaining its peoples’ unique relationship with the local geography and
natural setting. The economy is uniquely Alaskan whereby the typical family maintains a mixed
cash/subsistence lifestyle and where high energy costs are threatening the very existence of
Mentasta and its people. This is because most rural Alaskan households will spend up to 40
percent of their annual income (cash) on energy compared with 4 to 6 percent for the average
urban household. Mentasta is located within the Southeast Fairbanks Census Area which covers
a land area larger than many states in the lower-48. Mentasta’s delimina, as is the case for all of
rural Alaska, is it dependence on imported petroleum heating oil for space heating of essential
community facilities and infrastructure is causing a significant drain of cash from the community
and specifically from MTC’s programs’ budgets. This cash drain on MTC programs lessens
service delivery and the ability of MTC to hire program staff.
This AEA Round 5 project application seeks to install one high efficiency woody biomass space
heating plant centrally located to Mentasta village’s clustered community facilities in order to
displace expensive fuel oil, save communities money, utilize locally available renewable
resources, and create local employment opportunities. From a forest fire perspective, Mentasta
almost burned to the ground from wild fires surrounding the village two years. There is need to
create wildfire prevention buffer zones around the village and to also thin the surrounding
forests. These prevention activities will provide significant free fire wood fuel for the planned
biomass plant and improve the safety of the village from forest fires.
Estimated Fuel Oil to be Displaced
This AEA Round 5 project is expected to displace imported heating oil as follows:
Multi-Use Facility (4,000 s.f.) 4,000 gallons displaced at $5/gallon = $16,000
Council/Post Office Building (2,000 s.f.) 2,300 gallons displaced at $5/gallon = $11,500
Fire Station (1,400 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Community Hall (1,700 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Village Clinic (1,600 s.f.) 1,700 gallons displaced at $5/gallon = $8,500
Total annual fuel oil displaced is 10,800 gallons = $54,000 of cash savings
Savings Conclusion
Note: Mentasta Traditional Council (MTC) is currently is paying $4.70 per gallon for the bulk
purchase of community facility heating fuel oil. The annual fuel oil consumption listed above
was calculated from Mentasta Traditional Council’s 2010 fuel purchase invoices.
Expected Net Savings Using Simple Payback Analysis
This AEA Round 5 application seeks funding to install a GARN boiler heating plant sized to
meet the entire heat load of the five community facilities listed above. Discussions and data from
the City of Tanana, who has five years of GARN operational experience, show that in operation ,
the GARN boilers are delivering an equivalent of approximately 100 gallons of fuel oil per cord
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of seasoned wood burned. This conversion figure suggests that Mentasta would need to purchase
110 cords of seasoned fuel wood annually to meet the heating loads experienced in 2010 for the
five community facilities. Seasoned cord wood at Mentasta sells for $220 per cord and following
simple payback analysis shows:
Fuel oil cost @ $5/gallon x 10,800 gallons per year = $54,000
Cord wood @ $220/cord x 110 cords per year = $ 24,200
Gross annual savings = $ 29,800
Simple Payback (years)* = 13.4 years
*Note: Payback is estimated based on this AEA funding request for $400,000
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.
AEA Round 5 funds in the amount of $400,000 are requested.
Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $400,000
Sources
Tasks
AEA
Round 5
1. Building shell and foundation $ 115,000
2. Finalize biomass heating plant
design
$ 32,000
3. Procure boiler system & hardware $102,000
4. Install boilers, plumbing & utilidors* $106,000
5. Train worker to operate plant $ 5,000
6. Freight $ 25,000
8. Administration/Project Management $ 15,000
Total: $400,000
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. $400,000.00
2.7.2 Other Funds to be provided (Project match) $0.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $400,000.00
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$400,000.00
2.7.5 Estimated Direct Financial Benefit (Savings) $29,800 annually
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2.7.6 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.)
$ Wood harvesting jobs
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.
Type in your answer here and follow same format for rest of the application.
MTC will utilize its current employee, Rex Goolsby, who will be managing during 2012 and
2013 construction of a new community facility at Mentasta. Mr. Goolsby is also the current
Project Manager for the Tok-based Gateway School District’s $3,500,000 biomass space heating
and electrical co-generation project. Mr. Goolsby has successfully managed construction of this
project which will give him the expertise to successfully carry out the Mentasta Woody Biomass
Community Facility Space Heating Project.
Contact information: rex.goolsby@gmail.com
(907) 883-3333 land line
(907) 940-5334 cell
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
Tasks – Year One Q1
8/1/12
12/31/12
Q2
1/1/13
3/31/13
Q3
4/1/13
6/30/13
Q4
7/1/13
9/30/13
Q5
10/1/13
12/31/13
1. Grant agreement in-place X
2. Finalize biomass heating plant design X
3. Procure boiler system and hardware X
4. Construct building shell and foundation X X
5. Install plumbing utilidors to buildings X X
6. Train workers to operate plant X
7. Reports to AEA X X X X X
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
See 3.2 Project Schedule above.
3.4 Project Resources
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Describe the personnel, contractors, 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.
MTC has consulted with the City of Tanana and the Gulkana Village Council who both
constructed GARN biomass space heating plants serving their community facilities. Both entities
provided MTC with their cost of construction experiences and their opinions of contractors and
engineering firms. MTC has also consulted with Alaska Heating Technologies, Inc who is the
Statewide GARN sales representative and with CE2 Engineering. Both firms have provided
valuable systems sizing information and cost estimates.
Due to the fact that the Tanana and Gulkana biomass plants mirror the biomass plant planned at
Mentasta, MTC has determined that there is not need to conduct reconnaissance, feasibility and
or extensive pre-construction engineering. Rather, MTC has allocated sufficient funding in this
AEA Round 5 application to enable it to prudently design and engineer efficient implementation
of a single biomass space heating plant serving five clustered community facilities.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
MTC will provide quarterly construction progress reports to the AEA and will employ Rex
Goolsby as the on-site Project Manager who will directly responsible for monitoring of project
progress. Mr. Goolsby will report project progress to MTC’s Tribal Administrator, Angie David
who will be responsible for reporting to AEA on project progress and submission of financial
draws. MTC is annually externally audited and contract with a profession accountant for regular
financial accounting services.
3.6 Project Risk
Discuss potential problems and how you would address them.
The project schedule is time lenient and may be able to be sped-up depending on grant
agreement approval process. No potential problems are identified at this time.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
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.
The Upper Tanana Valley has experienced a number of large forest fires in recent years which
have made available thousands of acres of standing dead trees for biomass utilization activities. In
addition, Mentasta and the greater Tok area have identified the need to conduct extensive forest
thinning as a wildfire prevention strategy which will also open-up an immense biomass resource
availability for biomass utilization
MTC has also created the Mentasta Community Wildfire Protection Plan which calls for over the
course of the next 2 years, approximately 1200 acres must be managed as shaded fuel reduction
areas, stand conversion areas or cleared firebreak or evacuation areas. The State Forester for the
Upper Tanana region has stated that there many lifetimes worth of biomass available for biomass
utilization endeavors.
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.
Mentasta currently utilizes oil-fired hydronic boilers and space heat distribution systems (based
board radiators and heat loops) to heat the five targeted community facilities and a result, utilized
heating fuel oil as follows:
Multi-Use Facility (4,000 s.f.) 4,000 gallons displaced at $5/gallon = $16,000
Council/Post Office Building (2,000 s.f.) 2,300 gallons displaced at $5/gallon = $11,500
Fire Station (1,400 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Community Hall (1,700 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Village Clinic (1,600 s.f.) 1,700 gallons displaced at $5/gallon = $8,500
All five community facilities are clustered and Alaska Heat Technologies, Inc. has estimated total
utilidor distance to service them from a centrally located biomass space heating plant to be 1000
lineal feet. The existing heating systems can be easily tied into the planned biomass utilidor lines
and will act back-up heating if for whatever reason the biomass plant is not servicing the targeted
facilities.
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4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
Mentasta community facilities are entirely heated with imported heating fuel oil. There is no
village-based power plant. The targeted community facilities’ oil-fired boilers will be kept in-
place as back-up heating systems.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As discussed above, the Upper Tanana Region has almost as unlimited supply of fire damage
standing trees whose usefulness is limited to use as a biomass fuel source. In addition, Upper
Tanana wild fire thinning plans call for removal of thousand of cords of trees which will be made
available for local utilization – mainly biomass heating. Transportation of low-cost fire wood
from the Tok area is estimated at $20/cord plus purchase cost at $200/cord.
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
Alaska Heat Technologies, Inc has sized the planned biomass boilers, pumps and utilidor piping
to efficiently distribute heat energy to the targeted five community facilities. The Mentasta
biomass space heating plant will include the following:
28’ x 24’ insulated building to house the GARN boilers
3 each GARN WHS 2000 boilers will be installed
Pumps, valve, heat exchanger and control will be installed within the building
1000 of insulated arctic pipe will house the heat distribution lines to the five community facilities
This system can produce a maximum of 1,200,000 BTUs per hour which has been estimated to be
130% of anticipated maximum heat load of the targeted five community facilities. Integration
strategy will be for the biomass glycol lines to be tied into the using oil-fired boilers so that these
boilers remain hot and as result do not turn-on but still distribute the biomass heat throughout the
existing heat distribution system (radiators).
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.
Mentasta Traditional Council owns the five targeted community facilities and the land where the
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biomass space heating station will be constructed (see Map Attachment).
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
Only a fire marshal permit will be required and funds have been allocated to cover this cost under
the administration category of the project budget.
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
The selected site is Block 5 of the Mentasta subdivision (see Map Attachment) and this site has
had a previous environmental review conducted for the adjacent newly constructed Mentasta
Multi-Purpose Community Services Center. The land lot is cleared and grubbed and there are no
expected environmental or land-use issues.
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
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Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $400,000
Sources
Tasks
AEA
Round 5
1. Building shell and foundation $ 115,000
2. Finalize biomass heating plant
design
$ 32,000
3. Procure boiler system & hardware $102,000
4. Install boilers, plumbing & utilidors* $106,000
5. Train worker to operate plant $ 5,000
6. Freight $ 25,000
8. Administration/Project Management $ 15,000
Total: $400,000
Budget Narrative Discussion
1. Building shell and foundation – The building to house the planned 3 GARN boilers was cost-
estimated based on the cost of construction of the Gulkana’s GARN heating station. The building
will 672 square foot in size and is estimated at a total cost of $115,000. Extra cost factors to this
building design include the need to have a 12’ ceiling in order to accommodate overhead piping
runs and hardware. Also, additional expenses is planned for in installing a high-strength concrete
foundation in order to accommodate the heavy weight of the GARN boilers which each holds
2000 gallons of water for thermal storage capacity.
MTC has a local labor force trained by the University’s Interior Aleutians Campus in construction
trades technology and MTC will force account employ these workers to construct the building
under the direct supervision of Project Manager, Rex Goolsby. A portion of the Project Manager
salary is included in this category.
2. Finalize biomass heating plant design – MTC will issue a RFQ to obtain the mechanical
engineering services of a firm qualified and experienced in the final design of biomass heating
station heat distribution system and integration into the heating existing systems of the targeted
five community facilities.
3. Procure boiler system & hardware - MTC will procure the GARN boilers and related hardware
following State of Alaska procurement regulations. A portion of the Project Manager salary is
included in this category.
4. Install boilers, plumbing & utilidors – Funds have been allocated to procure and contract with a
qualified mechanical installation firm to install the support plumbing system to distribute the heat
from the GARN boilers. Funds are also included in this category for procurement of related
pumps, exchangers, valves and controls. A portion of the Project Manager salary is included in
this category.
5. Train worker to operate plant – Funds have allocated for travel, per diem and wages for MTC
maintenance workers to travel to Tanana and obtain hands-on GARN operational training from
the City of Tanana. The City of Tanana has much experience in operating GARN boiler and
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received funding for the U.S. Department of Energy to train other villages in the use of biomass
systems.
6. Freight – Funds have been allocated to cover the cost of shipping the GARN boilers, hardware
and building materials to Mentasta.
7. Administration/Project Management – Funds have been allocated to cover reporting, financial
Management of grant fund and Fire Marshal permitting.
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.)
MTC currently employs a full-time facility maintenance worker and his duties will be expanded
to fire the boilers as needed on a daily basis. This additional work-load is expected to take one
hour per day based on interviews with the City of Tanana who has been operating similar systems
for almost five years. MTC existing maintenance worker budget and funding sources will cover
the maintenance worker’s daily firing of the system.
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
All delivered heat will go to MTC owned facilities and will thereby reduce MTC operational
budget for purchase of imported heating fuel oil.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
See attachment.
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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 (gal and $) 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
Mentasta currently utilizes oil-fired hydronic boilers and space heat distribution systems (based
board radiators and heat loops) to heat the five targeted community facilities and a result, utilized
heating fuel oil as follows:
Multi-Use Facility (4,000 s.f.) 4,000 gallons displaced at $5/gallon = $16,000
Council/Post Office Building (2,000 s.f.) 2,300 gallons displaced at $5/gallon = $11,500
Fire Station (1,400 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Community Hall (1,700 s.f.) 1,400 gallons displaced at $5/gallon = $7,000
Village Clinic (1,600 s.f.) 1,700 gallons displaced at $5/gallon = $8,500
Total annual fuel oil displaced is 10,800 gallons = $54,000 of cash savings
Savings Conclusion
Note: Mentasta Traditional Council (MTC) is currently is paying $4.70 per gallon for the bulk
purchase of community facility heating fuel oil. The annual fuel oil consumption listed above was
calculated from Mentasta Traditional Council’s 2010 fuel purchase invoices.
It is expected that MTC will purchase 110 cords of fire wood annually and thereby create a
number of part-time fire wood positions through the private sector.
This AEA Round 5 application seeks funding to install a GARN boiler heating plant sized to meet
the entire heat load of the five community facilities listed above. Discussions and data from the
City of Tanana, who has five years of GARN operational experience, show that in operation , the
GARN boilers are delivering an equivalent of approximately 100 gallons of fuel oil per cord of
seasoned wood burned. This conversion figure suggests that Mentasta would need to purchase
110 cords of seasoned fuel wood annually to meet the heating loads experienced in 2010 for the
five community facilities. Seasoned cord wood at Mentasta sells for $220 per cord and following
simple payback analysis shows:
Fuel oil cost @ $5/gallon x 10,800 gallons per year = $54,000
Cord wood @ $220/cord x 110 cords per year = $ 24,200
Gross annual savings = $ 29,800
Simple Payback (years)* = 13.4 years
*Note: Payback is estimated based on this AEA funding request for $400,000
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 15 of 18 7/1//2011
The planned Mentasta biomass space heating plant is expected to have at least a 20 year lifespan
and in today’s dollars, will save an estimated $596,000 in displaced imported heating fuel oil
purchase by MTC as follows:
Annual savings: $29,800 x 20 years = $596,000 over 20 years.
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
MTC will operate the Mentasta biomass space heating plant as part of its on-going community
facility and utility operations. MTC owns and operates all community facilities at Mentasta except
for the school and electrical distribution grid. With savings generated by this project, MTC will
establish a replacement reserves fund to cover on-going equipment, repairs, replacement and also
fire insurance. As mentioned, MTC existing full-time maintenance worker will operate the
biomass space heating plant on a daily basis and there will be no additional expenses for his
involvement.At AEA’s request, MTC commits to reporting the savings and benefits of this
project.
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.
MTC has worked with the villages of Tanana and Gulkana to gain valuable knowledge about
GARN biomass space heating system from both an operational and construction standpoint. MTC
has also interacted with Alaska Heat Technologies and received valuable system design input and
cost estimating. MTC has been in discussions regarding this project concept for more than three
years and is ready to start construction in 2012 depending project funding availability.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your pr oject. Include
letters of support from the community that would benefit from this project.
MTC is the sole governing body of Mentasta village and has committed to this project through
the attached resolution.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 16 of 18 7/1//2011
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.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Sources and Uses Table for Mentasta Biomass Heating Plant – Total Project: $400,000
Sources
Tasks
AEA
Round 5
1. Building shell and foundation $ 115,000
2. Finalize biomass heating plant
design
$ 32,000
3. Procure boiler system & hardware $102,000
4. Install boilers, plumbing & utilidors* $106,000
5. Train worker to operate plant $ 5,000
6. Freight $ 25,000
8. Administration/Project Management $ 15,000
Total: $400,000
Budget Narrative Discussion
1. Building shell and foundation – The building to house the planned 3 GARN boilers was cost-
estimated based on the cost of construction of the Gulkana’s GARN heating station. The building
will 672 square foot in size and is estimated at a total cost of $115,000 . Extra cost factors to this
building design include the need to have a 12’ ceiling in order to accommodate overhead piping
runs and hardware. Also, additional expenses is planned for in installing a high-strength concrete
foundation in order to accommodate the heavy weight of the GARN boilers which each holds
2000 gallons of water for thermal storage capacity.
MTC has a local labor force trained by the University’s Interior Aleutians Campus in
construction trades technology and MTC will force account employ these workers to
construction the building under the direct supervision of Project Manager, Rex Goolsby. A
portion of the Project Manager salary is included in this category.
2. Finalize biomass heating plant design – MTC will issue a RFQ to obtain the mechanical
engineering services of a firm qualified and experienced in the final design of biomass heating
station heat distribution system and integration into the heating existing systems of the targeted
five community facilities.
3. Procure boiler system & hardware - MTC will procure the GARN boilers and related hardware
following State of Alaska procurement regulations. A portion of the Project Manager salary is
included in this category.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 17 of 18 7/1//2011
4. Install boilers, plumbing & utilidors – Funds have been allocated to procure and contract with
a qualified mechanical installation firm to install the support plumbing system to distribute the
heat from the GARN boilers. Funds are also included in this category for procurement of related
pumps, exchangers, valves and controls.
5. Train worker to operate plant – Funds have allocated for travel, per diem and wages for MTC
maintenance workers to travel to Tanana and obtain hands-on GARN operational training from
the City of Tanana. The City of Tanana has much experience in operating GARN boiler and
received funding for the U.S. Department of Energy to train other villages in the use of biomass
systems.
6. Freight – Funds have been allocated to cover the cost of shipping the GARN boilers, hardware
and building materials to Mentasta.
7. Administration/Project Management – Funds have been allocated to cover reporting, financial
management of grant fund and Fire Marshal permitting.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 18 of 18 7/1//2011
SECTION 10 – 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. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Au thorized Signers Form.
G. 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.
H. 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 Nora David
Signature
Title First Chief
Date August 15, 2011