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HomeMy WebLinkAboutTanacross TVC 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 AEA12-001 Grant Application Page 2 of 18 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Tanacross Village Council Type of Entity: Federally recognized tribe Fiscal Year End: September 30th., 2011 Tax ID # 92-0068251 Tax Status: For-profit or XXX non-profit ( check one) Mailing Address P.O. Box 76009 Tanacross, Alaska 99706 Physical Address 1000 Tanacross Blvd. Tanacross, Alaska 99706 Telephone (907) 883- 5024 Fax (907) 883-4497 Email CoeArnold@yahoo.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Coe Arnold – Tribal Administrator Title: Tribal Administrator Mailing Address P.O. Box 76009, Tanacross, Alaska 99706 Telephone: (907) 883- 5024 Fax: (907) 883-4497 Email: CoeArnold@yahoo.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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 18 7/1//2011 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: Tanacross is located on the south bank of the Tanana River, 12 miles northwest of Tok, at milepost 1324 of the Alaska Highway. The community lies at approximately 63.385280° North Latitude and -143.346390° West Longitude. (Sec. 32, T019N, R011E, Copper River Meridian.) Tanacross is located in the Fairbanks Recording District. Tanacross lies within the continental climatic zone, with cold winters and warm summers. In the winter, cold air settles in the valley and ice fog and smoke are common. The average low during January is - 22 °F; the average high during July is 65 °F. Extreme temperatures have been measured from -75 to 90 °F. 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. Tanacross Woody Biomass Community Facility Space Heating Project Tanacross’ 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 Tanacross. This Project will construct one centrally located woody biomass space heating plant to substitute for expensive, imported heating oil use and wil heat 80% of Tanacross’ public facilities with high efficiency bio-mass (wood-fired) heating. Tanacross’ community facilities are centrally located and can be serviced by one woody Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 18 7/1//2011 biomass heating plant strategically located adjacent to Tanacross’ clustered public facilities (see Map Attachment). Tanacross Village Council is requesting AEA Round 5 in the amount of $420,000. Tanacross Village Council will contribute $170,000 of in-kind building materials to this exciting Project. Combined, Tanacross Village Council will construct a single woody biomass plant to heat four (4) community facility which is estimated to displace 26,500 gallons of imported heating oil and create local wood-harvesting employment/small business opportunities. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 18 7/1//2011 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.) Tanacross 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 Tanacross 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. Tanacross is located within the Southeast Fairbanks Census Area which covers a land area larger than many states in the lower-48. Tanacross’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 TVC’s programs’ budgets. This cash drain on TVC programs lessens service delivery and the ability of TVC to hire program staff. This AEA Round 5 project application seeks to install one high efficiency woody biomass space heating plant centrally located to Tanacross 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, Tanacross 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 (10,000 s.f.) 10,000 gallons displaced at $5/gallon = $50,000  Water/Sewer System heating loop 7,400 gallons displaced at $5/gallon = $37,000  Fire Station (3,400 s.f.) 3,400 gallons displaced at $5/gallon = $17,000  Community Hall (4,500 s.f.) 4,500 gallons displaced at $5/gallon = $22,500 Total annual fuel oil displaced is 25,300 gallons = $126,500 of cash savings Savings Conclusion Note: Tanacross Village Council (TVC) is currently is paying $4.50 per gallon for the bulk purchase of community facility heating fuel oil. The annual fuel oil consumption listed above was calculated from Tanacross Village 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 four community facilities listed above. Discussions and data from the City of Tanana, who has four 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 Tanacross would need to Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 18 7/1//2011 purchase 260 cords of seasoned fuel wood annually to meet the heating loads experienced in 2010 for the four community facilities. Seasoned cord wood at Tanacross sells for $200 per cord and following simple payback analysis shows: Fuel oil cost @ $5/gallon x 26,500 gallons per year = $126,500 Cord wood @ $200/cord x 260 cords per year = $ 52,000 Gross annual savings = $ 74,500 Simple Payback (years)* = 7.9 years *Note: Payback is estimated based on this AEA funding request for $420,000 and TVC’s estimated contribution of $170,000 of building materials (for the heating plant structure and utilidor runs) totaling $590,000 to establish a functioning biomass heating plant at Tanacross. 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 $420,000 are requested and the TVC will contribute approximately $170,000 of new building materials that it has in storage (see Photos Attachment). Sources and Uses Table for Tanacross Biomass Heating Plant – Total Project: $540,000 Sources Tasks AEA Round 5 TVC Materials Donated Total 1. Building shell and foundation* $ 70,000 $ 70,000 $140,000 2. Finalize biomass heating plant design $ 38,000 $ 38,000 3. Procure boiler system & hardware $132,000 $132,000 4. Install boilers, plumbing & utilidors* 120,000 $100,000 $2270,000 5. Train worker to operate plant $ 5,000 $ 5,000 6. Freight $ 35,000 $ 35,000 8. Administration/Project Management $ 20,000 $ 20,000 Total: $420,000 $170,000 $590,000 *TVC will be donating the building shell (SIPS panels and roofing metal –estimated @ $70,000) materials and 1700 feet of arctic pipe for the utilidor runs to the four community facilities (estimated $58 per lineal foot or $100,000). 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. $420,000.00 2.7.2 Other Funds to be provided (Project match) $170,000.00 in-kind 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $590,000.00 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 18 7/1//2011 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) $590,000.00 2.7.5 Estimated Direct Financial Benefit (Savings) $74,500 annually 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. TVC will utilize its past employee, Rex Goolsby, who is 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 Tanacross 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 18 7/1//2011 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 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. TVC 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 TVC with their cost of construction experiences and their opinions of contractors and engineering firms. TVC 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 Tanacross, TVC has determined that there is not need to conduct reconnaissance, feasibility and or extensive pre-construction engineering. Rather, TVC 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 four clustered community facilities. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TVC 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 TVC’s Tribal Administrator, Earnest Coe Arnold who will be responsible for reporting to AEA on project progress and submission of financial draws. TVC 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 18 7/1//2011 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, Tanacross 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 TVC has also created the Tanacross Community Wildfire Protection Plan which calls for over the course of the next 3 years, approximately 1800 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 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. Tanacross currently utilizes oil-fired hydronic boilers and space heat distribution systems (based board radiators and heat loops) to heat the four targeted community facilities and a result, utilized heating fuel oil as follows  Multi-Use Facility (10,000 s.f.) 10,000 gallons  Water/Sewer System heating loop 7,400 gallons  Fire Station (3,400 s.f.) 3,400 gallons  Community Hall (4,500 s.f.) 4,500 gallons All four 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 1700 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. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 18 7/1//2011 any impact the project may have on existing energy infrastructure and resources. Tanacross 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. 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 four community facilities. The Tanacross biomass space heating plant will include the following: 30’ x 30’ insulated building to house the GARN boilers 3 each GARN WHS 3200 boilers will be installed Pumps, valve, heat exchanger and control will be installed within the building 1700 of insulated arctic pipe will house the heat distribution lines to the four community facilities This system can produce a maximum of 2,100,000 BTUs per hour which has been estimated to be 130% of anticipated maximum heat load of the targeted four 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. Tanacross Village Council owns the four targeted community facilities and the land where the biomass space heating station will be constructed (see Map Attachment). Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 18 7/1//2011 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 Tanacross subdivision (see Map Attachment) and this site has had a previous environmental review conducted for the adjacent newly constructed Tanacross 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 18 7/1//2011 Sources and Uses Table for Tanacross Biomass Heating Plant – Total Project: $590,000 Sources Tasks AEA Round 5 TVC Materials Donated Total 1. Building shell and foundation $ 70,000 $ 70,000 $140,000 2. Finalize biomass heating plant design $ 38,000 $ 38,000 3. Procure boiler system & hardware $132,000 $132,000 4. Install boilers, plumbing & utilidors $120,000 $100,000 $220,000 5. Train worker to operate plant $ 5,000 $ 5,000 6. Freight $ 35,000 $ 35,000 7. Administration/Financial Management $ 20,000 $ 20,000 Total: $420,000 $170,000 $590,000 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 900 square foot in size and is estimated at a total cost of $140,000 of which TVC will be donating an estimated $70,000 of building materials which it has in storage at Tanacross. 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 3200s gallon of water for thermal storage capacity. TVC will be donating high quality “Emecor” structural insulated panels (R value is 27), building wall and roof metal. See Materials Photos attachment. The $70,000 allocated from this AEA Round 5 budget under this category will cover the remaining building materials needed, foundation installation and labor to complete the building. TVC has a local labor force trained by the University’s Interior Aleutians Campus in construction trades technology and TVC 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 – TVC 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 four community facilities. 3. Procure boiler system & hardware - TVC 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. TVC has also committed to donating an estimated 1700 lineal feet of insulated arctic pipe (see Materials Photos Attachment) which is estimated to be Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 18 7/1//2011 valued at $100,000 (see TVC resolution). 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 TVC 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 Tanacross. 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.) TVC 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 four years. TVC 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 TVC owned facilities and will thereby reduce TVC 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 18 7/1//2011 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 This AEA Round 5 project is expected to displace imported heating oil as follows:  Multi-Use Facility (10,000 s.f.) 10,000 gallons displaced at $5/gallon = $50,000  Water/Sewer System heating loop 7,400 gallons displaced at $5/gallon = $37,000  Fire Station (3,400 s.f.) 3,400 gallons displaced at $5/gallon = $17,000  Community Hall (4,500 s.f.) 4,500 gallons displaced at $5/gallon = $22,500 Total annual fuel oil displaced is 25,300 gallons = $126,500 of cash savings Savings Conclusion Note: Tanacross Village Council (TVC) is currently is paying $4.50 per gallon for the bulk purchase of community facility heating fuel oil. The annual fuel oil consumption listed above was calculated from Tanacross Village Council’s 2010 fuel purchase invoices. It is expected that TVC will purchase 260 cords of fire wood annually and thereby create a number of part-time fire wood positions through the private sector. The planned Tanacross biomass space heating plant is expected to have at least a 20 year lifespan and in today’s dollars, will save an estimated $1,490,000 in displaced imported heating fuel oil purchase by TVC as follows: Annual savings: $74,500 x 20 years = $1,490,000 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 18 7/1//2011 TVC will operate the Tanacross biomass space heating plant as part of its on-going community facility and utility operations. TVC owns and operates all community facilities at Tanacross except for the school and electrical distribution grid. With savings generated by this project, TVC will establish a replacement reserves fund to cover on-going equipment, repairs, replacement and also fire insurance. As mentioned, TVC 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. As AEA’s request, TVC 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. TVC 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. TVC has also interacted with Alaska Heat Technologies and received valuable system design input and cost estimating. TVC 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. As mentioned in this application, TVC has committed through the attached resolution to commit an estimated $170,000 of building and utilidor materials to project. 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. TVC is the sole governing body of Tanacross 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 Tanacross Biomass Heating Plant – Total Project: $590,000 Sources Tasks AEA Round 5 TVC Materials Donated Total 1. Building shell and foundation $ 70,000 $ 70,000 $140,000 2. Finalize biomass heating plant design $ 38,000 $ 38,000 3. Procure boiler system & hardware $132,000 $132,000 4. Install boilers, plumbing & utilidors $120,000 $100,000 $220,000 5. Train workers to operate plant $ 5,000 $ 5,000 6. Freight $ 35,000 $ 35,000 7. Administration/Financial Management $ 20,000 $ 20,000 Total: $420,000 $170,000 $590,000 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 900 square foot in size and is estimated at a total cost of $140,000 of which TVC will be donating an estimated $70,000 of building materials which it has in storage at Tanacross. 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 3200s gallon of water for thermal storage capacity. TVC will be donating high quality “Emecor” structural insulated panels (R value is 27), building wall and roof metal. See Photos attachment. The $70,000 allocated from this AEA Round 5 budget under this category will cover the remaining building materials needed, foundation installation and labor to complete the building. TVC has a local labor force trained by the University’s Interior Aleutians Campus in construction trades technology and TVC 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 – TVC 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 four community facilities. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 18 7/1//2011 3. Procure boiler system & hardware - TVC 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. TVC has also committed to donating an estimated 1700 lineal feet of insulated arctic pipe (see Photos Attachment) which is estimated to be valued at $100,000 (see TVC resolution). 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 TVC 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 Tanacross. 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. Authorized 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 Roy Denny Signature Title President Date August 18, 2011