HomeMy WebLinkAboutAGSD_Heat Loop Extension Round V Grant ApplicationAlaska Energy Authority
Round V Grant Application
Alaska Gateway School District:
Extension of Heating Loop
Table of Contents Appendix
AEA Grant Application 1
Regional School Board Resolution 2
Resumes 3
Conceptual Design 4
Proposed Project Schedule 5
AEA Budget Form 6
Engineering Project Cost Estimate Summary 7
AEA Cost/Benefit Worksheet 8
Engineering Economic Summary 9
Map of Tok Area Wildfire Remediation 10
State of Alaska Use Permit 11
Engineering & Business License 12
AEA Grant Document Authorized Signers 13
APPENDIX 1:
AEA Grant Application
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 22 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.
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Gateway School District
Type of Entity: K-12 Public School Fiscal Year End: June 30th
Tax ID # 92-0058369 Tax Status: For-profit or X non-profit ( check one)
Mailing Address
P.O. Box 226, Tok, Alaska 99780
Physical Address
Mile 1313.5 Alaska Highway, Tok, Alaska
Telephone
907 883 5151
Fax
907 883 5154
Email
smacmanus@agsd.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Scott MacManus
Title
Executive Director
Mailing Address
Box 226, Tok Alaska 99780
Telephone
907 883 5151
Fax
907 883 5154
Email
smacmanus@agsd.us
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
X An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
or
No
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
or
No
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)
Extension of Heating Loop
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.
The Project is located in the Upper Tanacross Valley, at Mile 1313.5 Alaska Highway, on the
Tok School Campus.
The community of Tok will be the primary beneficiary of the energy savings provided by the
extension of the heating loop from the biomass heating project, however the other communities
that are part of the Alaska Gateway School District which include Dot Lake, Eagle, Tetlin,
Tanacoss, Mentasta Lake, and Northway will also directly benefit from the reduced operating
costs at the Tok School Campus.
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The Tok biomass heating plant has also indirectly benefited several communities who have an
interest in exploring the potential of biomass heat by serving as a demonstration site for the
communities through interior Alaska.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind X Biomass or Biofuels
Hydro, including run of river X Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
X 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)
Reconnaissance X Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The project will include extending a new hot water heating / return loop from the recently
completed Biomass Heating Plant to two (2) additional buildings on the Tok School Campus and
will include the required integration work within the two buildings.
The first building is the multipurpose building which houses an ice hockey rink and shooting
range. The intent is to use the biomass plant to heat the shooting range and toilet group portion
of the multipurpose building, approximately 10,000 square feet. The second building is the
Zamboni garage which would approximately 1,400 square feet.
The heating loop will connect to the Tok School Biomass Plant that was completed in the Fall of
2010. (The Tok School Biomass Plant was developed using AEA Round I Grant Funding. The
project consisted of a Biomass heating facility that contained an automated biomass heating
system that now provides heat to the existing K-12 School.) Since the completion of the Tok
School Biomass Plant a steam turbine and electrical generation system have been added to
create a combined heat and power (CHP) system. The original biomass boiler was sized to
allow for the CHP expansion and the additional load of the multipurpose building and Zamboni
garage. The CHP project will be completed the fall of 2011.
When the CHP system is operational it will generate a substantial amount heat as a byproduct.
The heat created will surpass the required heat demand of the existing K-12 School. The intent
is to recover the surplus heat and supply it to meet the heating demand of additional buildings
mentioned above. The cost for maintenance and operation as well as for biomass fuel will be
negated for this project due to the planned operation of the CHP system.
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 completion of the Tok School Biomass Heating Plant, which was funded using AEA Round I
Grant funding, implemented the initial steps in meeting Alaska Gateway School District’s
(AGSD) long term energy vision of reducing the negative impact of the rising and volatile cost of
energy on the School District’s budget. Since the completion of the Biomass Heating Plant a
CHP system has be integrated which will now generate electricity to help further offset the
impact of rising utility costs. Locally produced heat and power have provided more affordable
energy, while providing an opportunity to keep the budgeted energy funds in the local
community and the Upper Tanana Valley and directed to education rather than utilities.
There are many anticipated benefits for extending the heating loop to the two other large
buildings on the Tok School Campus. The primary benefit among these will be to expand upon
the success that the Biomass Heating Plant has achieved. There will be cost savings to AGSD
through the direct reduction of heating oil use. The cost for bulk heating oil delivered in Tok is
$3.45 per gallon in 2011. With the integration of the heating loop to the additional campus
buildings 10,350 gallons of heating oil would be displaced. The heat used to displace the
heating oil demand will be delivered by the heat loop and represents surplus heat created
during the electrical generation process of the CHP. The benefit of capturing this heat creates a
sustainable use for the surplus heat and reduces the cost involved in creating additional heat.
The wood energy program that has developed to support the Tok School Biomass Heating Plant
has created a sustainable market for woody biomass created by wildfire risk forest thinning and
enhancing wildlife habitat. It has also created local jobs. It is anticipated that these benefits will
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be enhanced by the extension of the heating loop.
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.
To complete the required design revisions, permitting, bidding, and construction for the
extension of the heating loop AGSD will need $625,000.00. AGSD is applying for this amount
from the AEA Renewable Energy Fund, Round V Grant.
For attachments related to Section 2.6 please see:
Appendix 6 and Appendix 7
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. $ 625,000.00
2.7.2 Other Funds to be provided (Project match) $ 4,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 629,000.00
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)
$ 625,000.00
2.7.5 Estimated Direct Financial Benefit (Savings) $ 22,625.00 (Year one)
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.)
$
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.
Alaska Gateway School District (AGSD) is the lead applicant for the grant and will provide
overall project oversight and will provide an onsite construction manager. CTA Architects and
Engineers will provide project management, engineering, technical guidance, and construction
administration. The main point of contact for AGSD will be Scott MacManus, who is also the
principal investigator of this application.
Scott MacManus, Owner’s Project Manager, Alaska Gateway School District
Scott has had experience in project management for both construction and education programs.
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He will provide oversight for all of the stages of the project between the School District, CTA,
and construction companies and with the Alaska Energy Authority. Mr. MacManus will be
preforming the AEA contract oversight to ensuring timely completion of the project and
adherence to AEA regulations.
Rex Goolsby, Construction Manager, Alaska Gateway School District
Rex served as the Construction Manager for the recently completed Tok Biomass Heating
Plant. He will serve as the onsite construction manager and will provide coordination between
AGSD, CTA, and the construction companies during construction. Rex will provide
communication meetings, project schedule coordination, and construction quality control.
Nathan Ratz, Sr. Mechanical Designer, CTA
Nathan has over 16 years of experience in HVAC and plumbing design for a variety of
commercial, government, and educational projects. He has experience in air system design,
hydronic system design, steam system design, D-W-V design, domestic water system design,
cost estimating, and construction administration.
Nick Salmon, Sr. Project Manager, CTA
Nick has more than 20 years of experience in programming, development, and management of
complex projects. His strong background in construction administration allows him to translate
that knowledge into cost effective solutions. Nick will provide technical project management
oversight through the design phase and will serve as support during the construction.
Jesse Vigil, Project Manager, CTA
Jesse specializes in the management and construction coordination. Jesse has over 7 years of
experience in the architectural industry. He served as the project manager for the bidding and
construction phase for the recently completed Tok Biomass Heating Plant. He will assist with
project management and will facilitate communications with AGSD, Rex Goolsby, and the
construction companies during construction.
For attachments related to Section 3.1 please see:
Appendix 3:
The following full resumes are enclosed:
Scott MacManus - AGSD, Executive Director
Rex Goolsby – AGSD Construction Manager
Nick Salmon - CTA, Sr. Project Manager
Jesse Vigil – CTA, Project Manager
Nathan Ratz - CTA, Sr. Mechanical Designer
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.)
1: Grant Submission
2: Final Design and Permitting
3: Construction
8/26/11 - 8/1/12
8/1/12 – 11/16/12
1/11/13 – 8/16/13
For attachments related to Section 3.2 please see:
Appendix 5: Proposed Project Schedule
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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.)
The key tasks for this project are as follows:
1: Feasibility (Complete)
Engineering Cost Estimate for Extension of Heating Loop
Feasibility Study
2: Grant Submission (In Progress)
AEA Round V Grant Application
AEA Round V Grant Award and Notice to Proceed
3: Final Design and Permitting
Revise Construction Documents to reflect Extension of Heating Loop
Engineering Cost Estimate
AEA Review and comment
Permit Application
Permit Approval
4: Construction
Issuance of Bid Package
Award of Bid Package
Mobilization
Begin Mechanical integration with existing boiler rooms
Complete mechanical integration with exiting boiler rooms
Begin mechanical integration and install heating loop to multipurpose building &
Zamboni garage
Complete mechanical integration and install heating loop to multipurpose building &
Zamboni garage
Substantial completion/punch list
Commissioning
Final completion
1 year warranty review
For attachments related to Section 3.3 please see:
Appendix 8: AEA Cost/Benefit Worksheet
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.
Personnel:
Professional design services will be provided by CTA Architects and Engineers who provided
design services for the Biomass Heating Project. The base engineering and planning for the
heat loop extension was completed during the Biomass Heating Project but was not executed at
that time. The professional design services were originally determined through a competitive
request for qualifications. CTA Architects and Engineers was selected based on experience in
integration wood fired heating systems into school buildings.
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Contractors:
The general contractor will be determined through competitive bid process and managed by the
AGSD Construction Manager. The bid will be publicly advertised. Yukon Construction Inc.
which is located in Tok, and who served as the general contractor on the Biomass Heating Plant
which was recently completed will be invited to bid on the Extension of the Heat Loop.
Equipment:
The extension of the heat loop will connect the 2 remaining large buildings on the Tok School
campus to the newly constructed Biomass Heating Facility, which was completed in 2010. The
connection will require mechanical and electrical integration at the Biomass Heating Facility and
in the existing multipurpose building and Zamboni garage.
For attachments related to Section 3.2 please see:
Appendix 3:
The follow resumes are enclosed:
Todd Poage - AGSD Superintendent
Scott MacManus - AGSD, Executive Director
Marion MacManus - AGSD, Business Manager
Rex Goolsby – AGSD Construction Manager
Nick Salmon - CTA, Sr. Project Manager
Jesse Vigil – CTA, Project Manager
Nathan Ratz - CTA, Sr. Mechanical Designer
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
A communications plan will be developed as part of the project, and all engaged parties (CTA,
Contractors, AEA Staff and AGSD Staff) will be briefed on the plan. Communications will be the
primary responsibility of Scott MacManus, who will work closely with CTA and Rex Goolsby to
ensure that each party understands their role, and what the project schedule and goals will be.
Regular teleconferences will be held to ensure all team members are informed and allow for
discussion of any topics that will arise during design and construction. Meeting minutes of the
regular teleconferences will be sent out to the project team and AEA. Telephone, fax, and e-
mail will provide the basic day-to-day communications needed to maintain successful project
delivery.
During the design and construction of the Biomass Heating Plant, which was completed using
Round I grant funding, the AEA Staff was fully integrated into the communication chain. They
were invited to attend all meetings, consulted on all major decisions, and were copied on all
meeting minutes. The strong relationship that was forged will be continued.
3.6 Project Risk
Discuss potential problems and how you would address them.
While an attempt has been made to foresee the possible events and issues that could delay the
project, or otherwise cause problems completing The expansion of the heating loop on the Tok
School campus , there are scenarios where by problems may occur, as follows:
Cost Increases that are unforeseen and go beyond the Scope of Work indicated
in the proposal.
Construction delays which include inclement weather, forest fire, or gaining the
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required approvals from the Division of Fire and Life Safety.
Clearly, all problems that come along will not be foreseen, however, ensuring that realistic
planning timelines and project flowcharts are in place, contingencies developed, and ensuring
that lines of communication are used, will reduce many of the problems that might otherwise
occur. To some extent, installing liquidated damages agreements into each contract, and
clearly outlining these at the start of each phase, with clear benchmarks in place, should serve
to reduce delays.
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 extension of the heat loop from the Biomass Plant to the 2 additional buildings on the Tok
School Campus will meet the heating demands by using surplus heat that is created as a
byproduct of the electrical generation of the CHP. It is anticipated that when the CHP is in
operation the surplus heat will be available to heat the 2 additional buildings. If the CHP is not in
operation the biomass boiler is large enough to provide adequate heat to meet the required
loads of the K-12 School and the 2 additional buildings served by the heat loop expansion.
The project will use surplus heat but the biomass boiler is operated using wood biomass. With
the annual required biomass required to meet the heating and electrical generation demands,
the estimated harvest would only require between 25 to 35 acres of the typical forest found
within a 10 mile radius of the school if harvesting specifically for biomass fuel. There are two
sources of material currently available in the area with the possibility of further commercial
expansion of biomass harvest.
The first source of material available is the trees removed from the hazardous fuels reduction
projects in the Tok Area. Over the last 18 years the material removed to create a safety zone
around homes and businesses for defensible space has found very little use for firewood with a
majority of the removed material being piled and burned in slash piles. A Community Wildfire
Protection Plan (CWPP) was signed by the community and State of Alaska agencies in 2008.
The agreement continues to be a collaborative effort of community leaders, State of Alaska, and
federal agencies to remove trees and forest material to mitigate the extreme wildfire hazard that
the community of Tok faces. It is anticipated that the hazardous fuel reduction project will
continue to provide a reliable source of biomass fuel.
One of the most basic and sensible approaches agreed to in the CWPP to was the remove of the
hazardous fuels surrounding homes, schools, businesses, public buildings, communication
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facilities, roads and highways. The State of Alaska Forestry worked to obtain a grant agreement
with US Fish and Wildlife Service Tetlin Wildlife Refuge funding approximately $180,000 dollars
which was used for the removal of hazardous fuels in the Tok Area. This includes the Tok
School where 50 Acres of hazardous fuels (spruce trees) were selectively removed and decked
a portion of which have been used to power the Biomass Plant over the last year. This provided
approximately 1,000 Tons of biomass. An additional 70 acres will be harvested on nearby Red
Fox road less than 3 miles from the school, which will generate an estimated 2,100 tons of
biomass that could be obtained for used at the school. Additionally 60 acres will be thinned and
removed from around senior citizen’s homes in the Tok Area. This will generate an additional
estimated 100 to 300 tons of biomass that could be obtained. This biomass/ hazardous fuel
(spruce trees) have found limited cordwood and timber value but have been a real cost and
liability to the land owner and the State of Alaska. It is anticipated that the hazardous material
(biomass) will be able to be obtained for $40-$60 per ton.
The long term fire reduction plan in the next 5 to 10 years is to remove 3,000 acres of highest
priority hazardous fuels in the Tok area. This is a hundred year rotation just within the highest
priority areas for fuel removal. The total stand of high volume hazardous fuels is over 39,000
acres in Tok. By creating a value and demand for the material it will make it possible to
sustainably remove this fuel. At the historic cost per acre it would require $7,500,000 of funding
to remove this hazardous fuel. This is far more fuel than the school alone could use but would
have a minimum value of at least $50 per ton or at least $4,500,000 for biomass fuel.
The second source is from Tok’s two small, longtime sawmill businesses that have never had a
use or market for the waste products from their milling operations. This includes tons of
sawdust, planner shavings, and slabs. These materials are available for purchase at a very
reasonable price and could be a significant source of biomass for the school. This would create
a secondary revenue stream and benefit to the milling operations and the timber industry in the
Upper Tanana Valley.
Biomass may also be harvested from clearing operations for private land development, highway
and road construction, and future pipeline construction. Waste supply is also growing, due to
ongoing timber harvest operations for firewood and sawlog production in the area.
Approximately 40 % of the forest is not suitable for commercial firewood or sawlog products; the
unusable waste is left on the ground, on the harvest unit landing or disposed of in the log yards.
This is at a considerable cost to the timber harvest operators with an unrealized use for
the material. The waste created by the timber harvest operations could be utilized and
transported in chip form or log form to the mill and / or school and purchased for biomass fuel.
The material that is available from this industry alone could annually heat the Tok School.
While the cost of biomass fuel could increase with increased demand it is not anticipated due to
the overall availability of forest resource in the area. The constraints associated with harvesting
timber on federal land will also not be an issue in the Tok Area. The vast majority of land
available for harvest is State of Alaska land, including land designated as State Forest and
private land with native corporations of Tanacross, Tetlin, and Doyon. There is widespread
agreement among all landowners to this project and the harvest of hazardous fuels or timber
products in the Upper Tanana.
For attachments related to Section 4.1 please see:
Appendix 10:
Map of Tok Area Wildfire Remediation
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4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
The shooting range and restroom portion of the multipurpose building is the only part of the
building heated and is approximately 10,000 SF. The multipurpose building is heated with two
fuel oil fired boilers, one rated at 346,000 Btu/hr output and the other rated at 1,528,000 Btu/hr
output.
These boilers also provide domestic hot water for the zamboni and the restrooms through an
indirect water heater. All of these boilers listed above operate at approximately 80% efficiency.
The zamboni garage is approximately 1,400 SF. The zamboni garage is heated with a fuel oil
fired boiler rated at 143,000 Btu/hr output. This boiler has an approximate efficiency of 82%.
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.
Heating oil is the primary energy used for heating the multipurpose building and Zamboni
garage. Based on the last three years of fuel consumption the two buildings use a combined
10,300 gallons of heating oil each year.
The school, as the primary customer for heating fuel in the region, will have a negative impact on
the market for heating fuel following a transition to biomass fuels that are produced to reduce
consumption by 8,750 gallons a year. However, most of the cost of that fuel is transferred
outside the community, whereas the costs for biomass will remain in 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 existing energy use in the Tok Area and Upper Tanana consists of #1 fuel oil (also known as
“diesel” or “heating oil”), propane, cordwood, wood pellets, wood chips and electricity. The use
of fuel oil over the last two years has dramatically shrunk in the residential market to an
estimated 5 to 20 % of the total heating energy. The majority of the population has chosen to
add wood stoves and / or outdoor wood boilers and plan to heat with wood and use fuel oil only
as a backup heating source.
The primary use for fuel oil is with state and federal government offices and buildings and with
some commercial businesses because of the lack of suitable alternatives. Some businesses are
using the outdoor (Central) wood boilers but they are very smoky and inefficient. Fuel oil will
have some of the market in the area for a long time, due to its dependability in cold weather and
as a backup system which is a must in this part of Alaska.
Propane is not used for heating by many facility owners. Propane freezes at minus 40 degrees
and so is not well suited to this country. Propane is the choice for cooking stoves.
Cordwood is a large market in the area, and is growing rapidly around the entire state for
residential use and for some business applications. Cordwood costs between $150 and $200
dollars cut and delivered. The demand for cordwood has created a supply shortage in the region
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and the price has increased with demand. Most of the trees in the upper Tanana are not
cordwood trees.
Wood pellets are becoming increasing popular and costs between $200 and $300 a ton. With
the introduction of local manufacturers that producing pellets consistently, the wood pellet market
has started to slowly expand for residential and commercial use.
The current market for wood chips and small diameter trees that cannot be used to produce
cordwood is the Tok Biomass Plant. As other biomass boilers begin to be introduced in the
region the demand will grow. This will help reduce the cost for timber harvest operations by
enabling them to be more efficient in the harvest of firewood and saw-logs by giving them a
market for the 30% of their current harvest that is slash, and for which they currently have no
market.
Lastly, electricity in the upper Tanana is extremely expensive as it is generated from diesel. No
facilities in the region use electricity as a heat source and due to the current costs per kwH it is
used very sparingly for lights and necessities. Even with Power Cost Equalization, it is cost
prohibitive for most people, business, and facilities. The local power company is currently
exploring alternative means; however no definitive plan has been released.
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 specific to project location:
The heating loop will connect to the Tok School Biomass Plant that was completed in the Fall of
2010. (The Tok School Biomass Plant was developed using AEA Round I Grant Funding. The
project consisted of a Biomass heating facility that contained an automated biomass heating
system that now provides heat to the existing K-12 School.) Since the completion of the Tok
School Biomass Plant a steam turbine and electrical generation system have been added to
create a combined heat and power (CHP) system. The original biomass boiler was sized to
allow for the CHP expansion. The CHP project will be completed the fall of 2011. The project
will use the surplus heat created as a byproduct of the CHP electrical generation. If the CHP is
not operational the biomass boiler is sized to meet the heat demand of the buildings.
Optimum installed Capacity:
By using the surplus heat created in addition to the biomass boiler it is anticipated that 85% of
the heating oil used by the multipurpose building and the Zamboni garage will be displaced.
Anticipated capacity factor:
The biomass boiler that was installed during the construction of the Tok Biomass Plant was sized
in anticipation for the expansion and incorporation of electrical generation to create the CHP.
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Anticipated annual generation:
It is anticipated that when the project is fully integrated that 85% of the heating oil use will be
displaced.
Anticipated barriers:
No technical barriers are expected as the original design was completed during the Tok Biomass
Plant design. Also the wood and biomass handling has been refined during the last year of
operation of the Biomass Plant.
Basic integration concept:
The surplus heat generated by the CHP will heat the main heating hot water loop through a heat
exchanger that is being installed as part of the CHP project. The existing main heating water
system pumps were sized to accommodate pumping to these buildings. Existing taps in the
biomass boiler plant will be connected to, and heating water mains will be installed from the
biomass boiler plant to the two boiler rooms. The existing boilers and heating systems will be left
in place and the interconnection completed in such a way that if the biomass boiler system fails
or is shut down, the existing building systems will automatically supply the heat to meet the
building demand.
Delivery Methods:
Heating hot water will be pumped from the Biomass Plant to the multipurpose building and
Zamboni garage via below grade insulated artic pipe.
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 project will be constructed on land owned by the Alaska Gateway School District, directly
adjacent Tok School.
For attachments related to Section 4.3.2 please see:
Appendix 11:
Use Agreement from the State of Alaska
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
List of Applicable Permits:
Approval to Construct, from the State of Alaska Fire Marshall / Division of Fire and Life Safety
Anticipated Permitting Timeline:
The Construction Documents will be issued to the Division of Fire and Life Safety prior to
releasing the project for bidding. A permit is expected within a month of submission.
Identify and Discussion of Potential Barriers:
No significant barriers are anticipated for the building permit. The State of Alaska Division of Fire
and Life Safety have been contacted to discuss the work identified. The design team worked
closely with the Division of Fire and Life Safety during the design and construction of the Tok
Biomass Plant and developed an understanding of the process and required communication.
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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
Threatened and Endangered Species:
There are no listed or identified endangered species in the Upper Tanana Valley.
Habitat Issues:
The habitat issues are few as a majority of the work will be the subgrade artic pipe supply and
return loop. The other habitat issues have been addressed during the Biomass Plant feasibility
and design. The major habitat issue addressed in the previous project were the the natural cycle
of large wildfires in the Tok area, creation of moose and upland game bird habitat, and
sustainable harvest of forest resources.
Wetlands and other protected areas:
Tok is on a glacial outwash comprised of sand and gravel and has very limited wetlands.
Wetlands are not present on the site identified to be disturbed during construction. There is no
permafrost in the immediate area and very limited permafrost within a 25 mile radius of Tok.
Archaeological and historical resources:
There are limited Archaeological and historical resources in the area; this has never been a
restriction to development or timber harvest activities in the past 50 years in the Tok Area.
Those areas that are identified are largely on Native owned lands, where there are strict
controls.
Land development constraints:
The land development constraints apply more to weather than legislation. The short construction
season in the upper Tanana Valley limits all earthwork to June through September. No
additional constraints are anticipated.
Telecommunications interference:
There are no constraints anticipated.
Aviation Considerations:
There are no constraints anticipated.
Visual, aesthetics impacts:
There is no visual or aesthetic impacts anticipated. The harvest activities of biomass in the area
are limited in size and are planned to be out of site from the highway or around existing
structures. Any impact is short term in duration with a vigorous rate of reproduction of aspen
from coppice (20,000 trees per acre sprouting in the 1990 burn) and spruce from natural seeding
in the Tok Area of up to a foot of growth annually.
Identify and discuss other potential barriers:
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The primary environmental barrier in the Upper Tanana Valley is the extreme cold temperatures.
It is difficult to harvest timber in temperatures colder than 30 below zero. The community of Tok
experiences temperatures that reach 30 below and colder for several weeks a year. However,
this will not be a prohibiting factor for the supply of biomass for this project. A planned one
month’s supply of biomass fuel will be on hand within the building prior to any forecasted cold or
storm fronts. Additionally biomass will be stored in tree length decks on the School Campus that
will be chipped throughout the winter by a grinder stored in the heated building.
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
Total anticipated project cost:
The total project cost for extending the heat loop and the required integration at the multipurpose
building and Zamboni garage is $629,000.
Requested grant funding:
A $625,000 grant from the Alaska Energy Authority is requested.
Applicant matching funds:
The Alaska Gateway School District has allocated $4,000 to update the feasibility study for the
project.
Identification of other funding sources:
No other funds are currently being sought for this project. The Alaska Gateway School District
does not have the ability to borrow funds for the project.
Project capital cost of proposed renewable energy system:
$577,500
Project development cost of proposed renewable energy system:
$47,500
For attachments related to Section 4.4.1 please see:
Appendix 7 and Appendix 8
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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.)
How will O&M costs be funded:
There will be limited additional O&M costs created by the project. A fulltime boiler operator has
been hired as part of the completion of the Biomass Heating Plant. It is anticipated that the
additional heat loop would be part of the typical O&M costs of the Biomass Heating Plant. The
project operation and maintenance costs will be funded from the regular budget of the school
district, and the reduced cost of energy to heat the school each year.
Requested grant funding:
Funding will not be needed for O&M. The grant will help reduce the annual loan payments and
result in greater assurance that the reduced cost of energy to heat the school each year can be
used to enhance the educational mission of the Alaska Gateway School District.
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
This section is not applicable to this application as the power purchase/ sale is being developed
under a different phase of the project which is not seeking funding.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Please see the attached cost work sheet.
For attachments related to Section 4.4.4 please see:
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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
Fuel displacement:
The projected annual fuel displacement will be approximately 8,750 gallons.
Anticipated revenues:
The power purchase agreement will be negotiated as part of the CHP project, which is in the
final stages of construction and will be complete in the fall of 2011. To assume the conservative
approach the benefits, both energy and cost savings, where not used in the development of the
economics for this application, but will provide direct benefit to the School District and the
proposed project.
Annual incentives and revenue streams:
AGSD operates as a nonprofit and is a government entity. Additional revenue streams have not
been explored. The project goal is to reduce the utility costs and allow more of the budget to be
focused on additional educational programs.
Non-economic public benefits:
The immediate public benefit that this project will have is to allow the School District to spend
fewer dollars on facilities and utilities, and more dollars in the classroom teaching children. From
the savings realized from the addition of the Biomass Plant a music teacher has been added to
the school staff.
Initiating a conversion to biomass in the form of wildfire remediation will simultaneously make the
community safer, supply a sustainable form of low cost heating fuel for schools, initiate a
regional conversion from fossil fuels to biomass, and be the foundation of an industry that will
create long-term viable timber industry employment for the residents of the Upper Tanana.
For attachments related to Section 5 please see:
Appendix 9:
Engineering Economic Summary
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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
Proposed Business Structure and Concept:
The project was evaluated using a 30-year cash flow analysis. A basic benefit to cost (B/C) ratio
was calculated as well as accumulated cash flow. Accumulated cash flow is similar to simple
payback with the exception that accumulated cash flow takes the cost of financing and fuel
escalation into account. Positive accumulated cash flow in year one indicates a strong project.
Positive accumulated cash flow in year 20 or more indicates a challenged project.
Byproduct surplus heat from the CHP is planned to be used to meet the heat load served by the
extended heat loop. It is anticipated that the CHP will be operational at least 80% of the time.
When the CHP is not operational the heat demand will be served by the biomass boiler or by the
existing heating oil boilers. The biomass boiler is used to meet the heat load served by the
extended heat loop. The cost of wood chips ($40/ton) is based on data collected from one
heating season of use. The biomass boiler efficiency was assumed to be 65%. The wood fired
boiler installed typically runs at an efficiency of 70% to 75%, so 65% is conservative. The wood
chips in the Upper Tanana are assumed to be at approximately 35% moisture content after a year
being decked, yielding 5400 Btu/lb.
Power is very expensive in Alaska compared to the continental US. Because of this the cost of
the additional electricity used by the circulation pumps was accounted for in the analysis.
The fuel cost escalation for petroleum based fuels was estimated at 5.0% annually which is
based on the EIA crude oil price projections modified by the Institute of Social and Economic
Research of the University of Alaska Anchorage. Fuel cost escalation for wood based fuels was
estimated at 3% annually.
At low loads, the biomass plant will not be able to sufficiently turn down to operate efficiently.
During these times, the fuel oil boilers will operate. Also at the campus peak heating load, the
biomass boiler will not be large enough, so the fuel oil boilers will operate to supplement the
heating systems. Because of these two reasons, it is assumed the biomass system will supplant
85% of the facilities fuel oil use.
Economics based on the very conservative estimated project costs and the assumptions listed
above were assembled and is shown on the attached summary. With the project fully funded, the
economic analysis shows a positive cash flow in the first year of approximately $27,000 in net fuel
savings, and a positive accumulated cash flow (PAC) of $303,000 in year 10, $916,000 in year
20; and $1,852,000 in year 30. This indicates a strong project. The simple payback is 23 years.
The B/C ratios is 1.74 (30 year analysis).
Proposed Financing the Maintenance and Operations for the Life of the Project:
The project operation and maintenance costs will be funded from the regular budget of the school
district. The funding will be set aside from the reduced cost of energy to heat the school each
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year.
Identification of Operational Issues that could Arise:
It is expected that most of the operational issues will have been discovered and corrected during
the first two years of operation of the completed Biomass Plant prior to the start of this project.
Operational Costs Including On-going Support for Existing Systems:
The existing fuel oil boilers will need to continue to be maintained. These costs are already
identified in the budget of the School District and will not change.
Commitment to Reporting the Savings and Benefits:
The Alaska Gateway School District will send annual savings and benefit reports to Alaska
Energy Authority. In addition we have already opened our facility to other School Districts that
are interested in exploring the integration of biomass heating to their facilities.
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.
Phase II is an extension of the Tok School Biomass Heating Project and will consist of the Bid
Alternates that were developed during Phase I. The design and planned integration of the
Phase II Bid Alternates is complete and is expect to move forward immediately with releasing the
documents for Bid on the notice from AEA of award of funding.
The Tok School Biomass Heating Project, which used AEA Round I Grant Funding was
completed in the fall of 2010. Through work with AEA representatives, the A/E design team, and
the General Contractor, Alaska Gateway School District was able to deliver a completed facility
that was of a higher level of quality and Scope than originally proposed in the Round I Grant
Application. This accomplishment shows the ingenuity of the School District to use the AEA
Round I Grant Funding to the full potential. With the additional Scope Phase I has met both
schedule and budget milestones identified in the Round I Grant Funding.
The Alaska Gateway School District has obtained additional legislative funding to integrate a
Combined Heat Power System (CHP) into the Biomass Heating Facility. The Combined Heat
Power System will use the biomass boiler to produce electricity by using a steam engine
generator. The integration of the CHP will be completed in October of 2011.
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.
The Tok School Biomass project has no known opposition, and has ever increased support
following the grand opening and first year of operation.
The Tok Area Forestry Office remains a strong supporter, and has been working with the school
district on this project from the beginning. We are working out a long term use contract for
biomass that is the result of road rights of ways that are being cut, and on the wildfire
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remediation that they are undertaking. A recent presentation was made by the school district at
the local forestry office to a meeting of the State Forestry Board, which included a lengthy
question and answer session, and tour of the facility, all commented that this was the kind of
project that the state needed more of.
The Tok Umbrella Corporation, our local government organization, has also been a consistent
supporter of the project, and continues to be a partner in the shared equipment, which includes a
Case 700 Series loader with a 6 yard biomass bucket and a log grapple for handling biomass in
order to feed it into the Rotochopper grinder that is also an integral part of the project.
SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
To complete the required design revisions, permitting, bidding, and construction for the
extension of the heating loop AGSD will need $625,000.00. AGSD is applying for this amount
from the AEA Renewable Energy Fund, Round V Grant.
For attachments related to Section 9 please see:
Appendix 6:
AEA Grant Budget Form
Appendix 7:
Engineering Project Cost Estimate
APPENDIX 2:
Regional School Board Resolution
APPENDIX 3:
Resumes
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APPENDIX 4:
Conceptual Design
APPENDIX 5:
Proposed Project Schedule
August 25, 2011Extension of Heating Loop to multipurpose building and ZamboniAlaska Gateway School District Scope of work1 FEASIBILITY (COMPLETE)Engineering Cost Estimate for Extension of Heating Loop (Complete)Feasibility Study (Complete)2 GRANT SUBMISSIONAEA Round V Grant Application Due: August 26, 2011Complete Review and Evaluation of Applications: December 9, 2011Projects submitted to the Legislature for review and approval: January 27, 2012Projects approved for funding (contingent upon Legislative Action): May 16, 2012 Finalize Award Documents (contingent upon AEA receiving all documentation needed for award): August 1, 2012AEA Round V Grant Award & Notice to Proceed3. FINAL DESIGN & PERMITTINGRevise Construction Documents to Reflect Extension of Heating Loop: August 1-17, 2012Engineering Cost Estimate: August 17, 2012AEA Review & Comment: August 20-September 14, 2012Permit Application: October 1-November 2, 2012Permit Approval: November 16, 20124. CONSTRUCTIONIssuance of Bid Package: January 11, 2013Award of Bid Package: February 15, 2013Mobilization: May 6, 2013Begin Mechanical Integration with Existing Boiler Rooms: June 3, 2013Complete Mechanical Integration with Existing Boiler Rooms: July 5, 2013Begin heating loop to Multipurpose building and Zamboni garage: June 3, 2013Complete heating loop to Multipurpose building and Zamboni garage: July 19, 2013Substantial Completion/Punch list: July 19, 2013Commissioning: July 22-August 2, 2013Final Completion: August 16, 2013One Year Warranty Review: August 15, 2014SCHOOL YEAR Nov-11Oct-11Apr-12Dec-11Oct-12May-12 Jun-12Feb-12Jul-12Mar-12Jan-12Sep-12Aug-11 Sep-11Aug-12
APPENDIX 6:
AEA Budget Form
Renewable Energy Fund Grant Round V Grant Budget Form 8/24/11 Construction: Extension of Heating Loop 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 Attached Milestone list. ) $ $ $ Issuance of Bid Package 1/11/13 $5,000 $ $5,000 Award of Bid Package 2/15/13 $5,000 $ $5,000 Mobilization 5/6/13 $10,000 $ $10,000 Mechanical Integration with existing Boiler Rooms 7/5/13 $75,000 $ $75,000 Heating loop to Multipurpose building and Zamboni Garage 7/19/13 $400,500 $400,500 Substantial Completion 7/19/13 $ $ $ Commissioning 8/2/13 $15,000 $ $15,000 Final Completion 8/16/13 $103,000 $ $103,000 TOTALS $613,500 $613,500 Budget Categories: Direct Labor & Benefits $8,000 $ $8,000 Travel & Per Diem $5,000 $ $5,000 Equipment $ $ $ Materials & Supplies $750 $ $750 Contractual Services $22,250 $ $22,250 Construction Services $577,500 $ $577,500 Other $ $ $ TOTALS $613,500 $ $613,500
Renewable Energy Fund Grant Round V Grant Budget Form 8/24/11 Design and Permitting Phase: Extension of Heating Loop 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 Attached Milestone list. ) $ $ $ Revise Construction Documents 8/17/2012 $4,000 $ $4,000 Engineering Cost Estimate 8/17/2012 $2,000 $ $2,000 Update Economic and Financial Analysis 9/14/2012 $2,000 $ $2,000 Permit Application 11/2/2012 $2,500 $ $2,500 Permit Approval 11/16/2012 $ 1,000 $ $ 1,000 $ $ $ $ $ $ $ $ $ TOTALS $11,500 $ $11,500 Budget Categories: Direct Labor & Benefits $2,000 $ $2,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $1,000 $ $1,000 Contractual Services $8,000 $ $8,000 Construction Services $ $ $ Other $500 $ $500 TOTALS $11,500 $ $11,500
APPENDIX 7:
Engineering Project Cost Est. Summary
TOTAL PROJECT COSTS24-Aug-11Extension of Heating LoopTok, AlaskaQUANTITY MATERIAL AND LABORNo. Unit PerTOTALUnits Meas. Unit TOTAL COST Hot water heating loop to addiotnal outbuilding on campus(Pricing developed from average of contractor bids submitted for Phase I)$525,000Sub Total$525,000Project Contingency10.00%$52,500Project Construction Costs Total$577,500Construction Manager1 ls $10,000.00 $10,000 $10,000A/E Design Services (Revise Bid Package)1 ls $4,000.00 $4,000 $4,000A/E Services (Bidding, Negotiations, Construction Administration , and Commissioning)1 ls $26,250.00 $26,250 $26,250Travel1 ls $5,000.00 $5,000 $5,000Printing1 ls $750.00 $750 $750Misc (postage, teleconferencing, file transfer, etc.)1 ls $1,000.00 $1,000 $1,000State Fire Marshall Review1 ls $500.00 $500 $500Soft Costs Total$47,500TOTAL PROJECT COSTS$625,000
APPENDIX 8:
AEA Cost/Benefit Worksheet
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Biomass. Need 20 acres annually.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. 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 3 heating boilers (fuel oil)
ii. Rated capacity of generators/boilers/other Multipurpose building 2 Boilers:
• 1,528,000 Btu/hr (output)
• 346,000 Btu/hr (output)
Zamboni Garage:
• 143,000 Btu/hr
iii. Generator/boilers/other type Cast iron sectional
iv. Age of generators/boilers/other Multipurpose building (both boilers): 8 years
Zamboni Garage boiler: 5 years
v. Efficiency of generators/boilers/other 80%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Anticipated to be negligible (O&M costs incorporated to
completed Biomass Plant)
ii. Annual O&M cost for non-labor $36,153 for fuel oil
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] n/a
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 10,300 gal
ii. Electricity [kWh] n/a
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.
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iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] n/a
vi. Other n/a
3. 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]
Connection to existing 5,000,000 Btu/hr (output) Biomass
Boiler
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu]
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] 28 green tons of wood fuel
iv. Other Captured surplus heat from CHP electrical generation
4. Project Cost
a) Total capital cost of new system $625,000
b) Development cost $0
c) Annual O&M cost of new system $0 (covered by existing biomass boiler O&M)
d) Annual fuel cost $5,400 fuel oil plus $1,100 wood fuel = $6,500 total
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 8,755 gallons of fuel oil
iii. Transportation
b) Current price of displaced fuel $30,730 (at $3.51/gal)
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale n/a
7. Project Analysis
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 3 7-1-11
a) Basic Economic Analysis
Project benefit/cost ratio 1.43 (30 year analysis)
Payback (years) 27.6 years
APPENDIX 9:
Engineering Economic Summary
Tok SchoolOption A.1Alaska Gateway School District, Tok, AlaskaHeat to Multipurpose Building and Zamboni Garage Date: August 25, 2011 Analyst: CTA Architects Engineers - Nathan Ratz EXISTING CONDITIONS Existing Fuel Type:PropaneFuel Oil Fuel Units:GalGalCurrent Fuel Unit Cost:$0.00$3.51 Estimated Average Annual Fuel Usage:010,300 Annual Heating Costs:$0$36,153ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):90500138500Current Annual Fuel Volume (Btu):01,426,550,000 Assumed efficiency of existing heating system (%):80%80% Net Annual Energy Produced (Btu):01,141,240,0001,141,240,000 WOOD FUEL COSTWood Chips$/ton: $40.00NOTE: 80% of wood fuel cost carried by cogeneration electrical production.Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 40% MC 5400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.163Tons of wood fuel to supplant net equivalent of 85% annual heating load.13825 ton chip van loads to supplant net equivalent of 85% annual heating load.6 Project Capital Cost-$625,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use20000kWhTypeHr/WkWk/YrTotal HrWage/HrTotalAmount Financed$0Elec Rate$0.350/kWhBiomass System0.0400$20.00$0Amount of Grants$625,000Other0.0400$20.00$01st 2 Year Learning0.0400$20.00$0Interest Rate5.00%Term10Annual Finance Cost (years)$0 27.6yearsNet BenefitB/C Ratio$893,965$268,9651.43$535,083-$89,9170.86Year Accumulated Cash Flow > 01Year Accumulated Cash Flow > Project Capital Cost18Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Discount Rate for Net Present Value Calculation3.0%YearYearYearYearYearYearYearYearYearYearYearYearYearYearCash flow DescriptionsUnit CostsHeatingSource ProportionAnnual Heating Source VolumesHeating Units1234567891015202530Existing Heating System Operating CostsDisplaced heating costs Propane$0.000Gal$0$0$0$0$0$0$0$0$0$0$0$0$0$0Displaced heating costs Fuel Oil$3.5110300Gal$36,153$37,961$39,859$41,852$43,944$46,141$48,448$50,871$53,414$56,085$71,580$91,357$116,597$148,811Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$40.0085%28tons$1,105$1,139$1,173$1,208$1,244$1,282$1,320$1,360$1,400$1,442$1,672$1,938$2,247$2,605Small load existing fuel - Propane$0.0015%0Gal$0$0$0$0$0$0$0$0$0$0$0$0$0$0Small load existing fuel - Fuel Oil$3.5115%1545Gal$5,423$5,694$5,979$6,278$6,592$6,921$7,267$7,631$8,012$8,413$10,737$13,704$17,490$22,322Additional Operation and Maintenance Costs$0$0$0$0$0$0$0$0$0$0$0$0$0$0Additional Operation and Maintenance Costs First 2 years$0$0Additional Electrical Cost $0.350$7,000$7,350$7,718$8,103$8,509$8,934$9,381$9,850$10,342$10,859$13,860$17,689$22,576$28,813Annual Operating Cost Savings$22,625$23,778$24,990$26,263$27,600$29,005$30,481$32,031$33,660$35,371$45,312$58,026$74,285$95,071Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow22,62523,77824,99026,26327,60029,00530,48132,03133,66035,37145,31258,02674,28595,071Accumulated Cash Flow22,62546,40271,39297,655125,254154,259184,740216,771250,430285,801491,500754,9521,092,2621,524,004Net Present Value (20 year analysis):Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):
APPENDIX 10:
Map of Tok Area Wildfire Remediation
Eagle Trail Fire,
2010
APPENDIX 11:
State of Alaska Use Permit
APPENDIX 12:
Engineering & Business License
APPENDIX 13:
AEA Authorized Signers
X:\JOBS\AGSD\Grant Applications_Round V\CTA Submittal Forms\TAC_District Office\AEA
Forms\GrantDocumentsAuthorizedSigners5.doc
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name:
Alaska Gateway School District
Regular Election is held:
Every 3 years
Date: First week in October
Authorized Grant Signer(s):
Printed Name Title Term Signature
Todd Poage superintendent n/a
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Lisa Conrad President Term up
10/2012
Grantee Contact Information:
Mailing Address: P.O. Box 226, Tok, AK 99780
Phone Number: 907 883 5151
Fax Number: 907 883 5154
E-mail Address: tpoage@agsd.us
Fiscal Year End: June 30th
Entity Type (For-profit or non-profit status): K-12 Public School
Federal Tax ID #: 92-0058369
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
813 W. Northern Lights Blvd.
Anchorage, AK 99503
Attn: Butch White, Grants Administrator