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HomeMy WebLinkAboutAGSD_Greenhouse V Grant ApplicationAlaska Energy Authority Round V Grant Application Alaska Gateway School District: Greenhouse and Processing Facility 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 2 of 22 7/1//2011 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 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 22 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) Greenhouse and Processing Facility utilizing surplus heat 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 22 7/1//2011 All of the communities that are part of the Alaska Gateway School District which include Dot Lake, Eagle, Tetlin, Tanacoss, Tok, and Mentasta Lake, and Northway will directly benefit from the availability of fresh produce grown in the greenhouse. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river X Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas X Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable X Other (Describe) Sustainable food production 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance X Design and Permitting X Feasibility X Construction and Commissioning Conceptual Design Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 22 7/1//2011 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 a new 24’-0” x 100’-0” greenhouse and 20’-0” x 30’-0” processing facility on the Tok School Campus. The greenhouse and processing facility would only use surplus heat from the Biomass Plant and would benefit from the electrical generation of the Combined Heat and Power (CHP) system. Prodcue would initially be used to supplement the schools Food Service Program, providing fresh vegetables to student who otherwise would not have access. The Biomass Plant has capacity to support additional greenhouses in the future if the demand for local produce in the region exceeds the anticipated yield capacity of the first greenhouse. 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 steam turbine and electrical generator will be added to create a Combined Heat and Power system to help further offset the impact of rising utility costs. The addition of the CHP system will created surplus heat, a byproduct of the electrical generation process, which will need to be dissipated. The heat will be dissipated through condensers (rejected to the atmosphere) or additional heating demand loads will have to be connected to the system to recapture the surplus heat. Each year AGSD spends $18,500 on fresh produce as part of the school meal programs for the entire School District. Due to the high cost of fresh produce, the school district relies upon frozen and processed foods to meet most of the needs of the school meals program. It is anticipated that additional substitution of these products with fresh produce would be possible if the cost was reduced. It is estimated that one 2,400 sq.ft. greenhouse could supplement and supply fresh produce for the entire School District. It is anticipated that a greenhouse in Alaska will yield between 1.5-3 lbs. per square foot per planting depending on crop type. There can be 1-3 plantings in a typical 7-9 month Alaska growing season (March- November). It is estimated that a 2,400 square foot greenhouse would produce roughly 3,600-7,200 lbs of fresh produce per planting or 10,800- 21,600 lbs per growing season. At a conservative average price of $1.00 per lb. of produce the greenhouse would supplement $10,800-$21,600 of fresh produce per year. The production, processing, and distribution of the fresh produce would create local jobs that would allow AGSD to keep school funds in the local communities. The addition of the greenhouse would also open the possibilities to start an agriculture program at the Tok School, through a partnership with the University of Alaska Fairbanks. Alaska is dependent on imports for much of its food supply. As the population grows so does the dependence. Several agencies are working to secure Alaska’s food supply. The mission of the Alaska Division of Agriculture is to promote and encourage development of an agriculture industry in the State. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 22 7/1//2011 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, permitting, bidding, and construction for the extension of the heating loop and implementation of the greenhouse AGSD will need $135,825.00. 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. $ 135,825.00 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) $ 139,825.00 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) $ 139,825.00 2.7.5 Estimated Direct Financial Benefit (Savings) $ 8,000.00 (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. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 22 7/1//2011 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 - 12/14/12 1/11/13 - 8/30/13 For attachments related to Section 3.2 please see: Appendix 5: Proposed Project Schedule Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 22 7/1//2011 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: Grant Submission AEA Round V Grant Application AEA Round V Grant Award and Notice to Proceed 2: Final Design and Permitting Review Scope Complete Design Engineering Cost Estimate AEA Review and comment Permit Application Permit Approval 3: Construction Issuance of Bid Package Award of Bid Package Mobilization Begin Mechanical integration with Biomass Boiler Plant Construct greenhouse and processing facility 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 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. 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 22 7/1//2011 Equipment: The greenhouse will require the extension of a heat loop that will require integration into the newly constructed Biomass Heating Facility, which was completed in October of 2010, to capture the surplus heat created by the CHP, which will be operational by October 2011. The greenhouse will be constructed to minimize the effects of the of the extreme temperature shifts that are common in the spring and fall in Tok. The design will use pit run materials excavated from the project site and placed in wire gabions to create heavy mass walls to help retain heat, double plastic façade at the greenhouse to reduce heat loss, and passive ventilation to help minimize the energy consumption of the building. The processing facility would be a well- insulated, standard wood framed building attached to the back of the greenhouse. For attachments related to Section 3.2 please see: Appendix 3: Map of Tok Area Wildfire Remediation 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 addition of the greenhouse and processing facility 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. Unforeseen potential crop failure. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 22 7/1//2011 The length of the initial training process for running a large commercial style greenhouse would impact the overall efficiency of the crop yield. Construction delays which include inclement weather, forest fire, or gaining the required approvals from the Division of Fire and Life Safety. The project does not secure funds. At this early point in the project other funding would have to be sought to complete the project. 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 greenhouse and processing facility 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. If the CHP is not in operation for a short period of time the Biomass Boiler will be able to supply heat to the facility. If the CHP is not in operation or is shut down for an extended period of time the greenhouse would also be shut down. Extended shut downs of the biomass boiler for maintenance are likely to occur during the summer months when the greenhouse will require little or no heat from the Biomass Plant. The project will use surplus heat but the biomass boiler is operated using wood biomass. It is important to revisit the available supply to insure the project will have adequate fuel. The following fuel and supply information was developed during the feasibility study created for the Tok Biomass Plant. With the annual required biomass required to meet the heating and electrical generation demands, the estimated harvest would only require between 3 to 5 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 22 7/1//2011 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 building, communication 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 to $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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 22 7/1//2011 For attachments related to Section 4.1 please see: Appendix 10: Map of Tok Area Wildfire Remediation 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. There is no existing energy system involved in the project. The project will serve as a new building and use for surplus heat created by the CHP. 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. There is no existing energy resource currently being used. Therefore there will be limited impact on the existing energy infrastructure. The capturing and use of the surplus heat created by the CHP it will not require heat to be rejected to the atmosphere, allowing for increased efficiency. 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. Propane has become very expensive, and costs $79 for a 100lb tank. 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 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 22 7/1//2011 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. If any of the above mentioned energy sources were used for heating the greenhouse and processing facility it would be far too costly to operate. By using the surplus heat created by the CHP the greenhouse will not impact other energy costumers in Tok or the Upper Tanana. 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: A 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 will be 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. Optimum installed Capacity: By using the surplus heat created in addition to the biomass boiler it is anticipated that 100% heat demand of the greenhouse and processing facility will be supplied by the Biomass Plant. 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. The byproduct heat created will be an added benefit if captured and used. Anticipated annual generation: It is anticipated that the greenhouse will produce 10,800-21,600 lbs of fresh produce during 7-9 month growing season. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 22 7/1//2011 Anticipated barriers: No technical barriers are expected. 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 expansion. 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 greenhouse and processing facility. Delivery Methods: Heating hot water will be pumped from the Biomass Plant to the greenhouse and processing facility 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 to the 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 22 7/1//2011 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: There are not anticipated habitat issues as the project is located on an existing developed site. 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 16 of 22 7/1//2011 Identify and discuss other potential barriers: The primary environmental barrier in the Upper Tanana Valley is the extreme cold temperatures. The community of Tok experiences temperatures that reach 30 below and colder for several weeks a year. A potential barrier to the success of the project could be a truncated growing period. 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 a heat loop, greenhouse, and processing building would be $139,825.00 Requested grant funding: A $135,825.00 grant from the Alaska Energy Authority is requested. Applicant matching funds: The Alaska Gateway School District has allocated $4,000 to complete the feasibility study for the project. Identification of other funding sources: The Alaska Gateway School District does not have the ability to borrow funds for the project. Potentially additional funding could be provided by the Alaska Department of Natural Resources, Division of Agriculture. Project capital cost of proposed renewable energy system: $125,925 Project development cost of proposed renewable energy system: $13,900 For attachments related to Section 4.4.1 please see Appendix 10: Estimate of Probable costs of design and construction Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 22 7/1//2011 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: A full-time agriculture teaching position will be created. Part of the job responsibly would include operation and maintenance of the greenhouse and processing facility. A part time assistant would also be needed to help during the busy harvesting periods. 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: Appendix 8: AEA Cost/Benefit Worksheet Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 18 of 22 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 Fuel displacement: If the proposed greenhouse was to be constructed with a standalone heating system instead of the existing biomass boiler system, it is estimated that 1800 gallons of fuel oil would be needed to heat the greenhouse annually. Utilizing the existing biomass system for 85% of the heating energy would save 1,530 gallons of fuel oil at an estimated annual cost of $5,370. 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 fresh produce costs and to keep the budgeted funds in the local community. If surplus produce is created it could be sold to the community to help cover the operating costs or as a fund raising event for the school or students. Non-economic public benefits: The immediate benefit that this project will have is to allow the School District control over the fresh produce budget and would reinforce AGSD’s goals for a balanced and healthy meal program. Interior Alaska is an area where nutrition problems are endemic. Youth Obesity is becoming a problem, diabetes as a result of lifestyle is epidemic nationwide. New local jobs will also be created at the greenhouse and training will also be supplied to Alaskans through the new agriculture program. For attachments related to Section 5 please see: Appendix 9: Engineering Economic Summary Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 19 of 22 7/1//2011 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. 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 additional cost of pumps will be offset by the CHP. The fresh produce cost escalation was estimated at 4% annually which is based on the National Inflation Association projections. 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 $8,000 in fresh produce savings, and a positive accumulated cash flow (PAC) of $116,000 in year 10, $342,000 in year 20; and $747,000 in year 30. The simple payback is 17.3 years. The B/C ratio is 1.71 for a 20 year analysis and 3.06 for a 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 year. Identification of Operational Issues that could Arise: It is expected that there will be a learning curve to developing a functioning green house. The operations will depend on the individual hired to fill the position and how well it can be incorporated into an agricultural educational program. Operational Costs Including On-going Support for Existing Systems: The Biomass Boiler and Plant will need to be maintained. These costs are already identified in the budget of the School District and will not change. No other existing systems exist. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 20 of 22 7/1//2011 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 District who 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. The project defined in the grant application is expect to move forward immediately with design on the notice from AEA of award of funding. The AGSD has funded the feasibility study to position the project for an immediate transfer into the design phase. 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 complete by October 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 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. The 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 21 of 22 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 To complete the required design, permitting, bidding, and construction for the extension of the heating loop AGSD will need $135,825.00. AGSD is applying for this amount from the AEA Renewable Energy Fund, Round V Grant. For attachments related to Section 9 please see: Appendix 6: AEA Grant Budget Form Appendix 7: Engineering Project Cost Estimate APPENDIX 2: Regional School Board Resolution APPENDIX 3: Resumes !" #$! #!% ! &$’ ( #) *" +! ! ,! -# .!" #/+$ "$!-!" # ! . ! APPENDIX 4: Conceptual Design Greenhouse and Processing Facility Concept Plan – Level I Perspective Section 1 Section 2 APPENDIX 5: Proposed Project Schedule August 25, 2011Greenhouse and Processing FacilityAlaska Gateway School District Scope of work1 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 Proceed2. FINAL DESIGN & PERMITTINGReview Scope: August 1-15, 2012Complete Design: October 1, 2012Engineering Cost Estimate: October 1, 2012AEA Review & Comment: October 1-November 1, 2012Permit Application: November 1-30, 2012Permit Approval: December 14, 20123. CONSTRUCTIONIssuance of Bid Package: January 11, 2013Award of Bid Package: February 15, 2013Mobilization: May 6, 2013Begin Mechanical Integration with Biomass Boiler Plant: June 3, 2013Construct Greenhouse and Processing Facility: June 3-August 2, 2013Substantial Completion/Punch list: August 2, 2013Commissioning: August 5-16, 2013Final Completion: August 30, 2013One Year Warranty Review: August 30, 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 Design and Permitting Phase: Greenhouse and Processing Facility 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. ) $ $ $ Review Scope 8/15/12 $1,000 $ $1,000 Complete Design and Construction Docs 10/1/12 $4,000 $ $4,000 Engineering Cost Estimate 10/1/12 $500 $ $500 Update Economic and Financial Analysis 11/1/12 $1,000 $ $1,000 Permit Application 11/30/12 $ 500 $ $ 500 Permit Approval 12/14/12 $ $ $ $ $ $ TOTALS $7,000 $ $7,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $7,000 $ $7,000 Construction Services $ $ $ Other $ $ $ TOTALS $7,000 $ $7,000 Renewable Energy Fund Grant Round V Grant Budget Form 8/24/11 Construction: Greenhouse and Processing Facility 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 $1,000 $ $1,000 Award of Bid Package 2/15/13 $1,000 $ $1,000 Mobilization 5/6/13 $5,000 $ $5,000 Mechanical Integration with existing Biomass Plant 6/3/13 $28,000 $ $28,000 Construction of Greenhouse and Processing building 8/2/13 $73,825 $73,825 Substantial Completion 8/2/13 $5,000 $ $5,000 Commissioning 8/16/13 $5,000 $ $5,000 Final Completion 8/30/13 $10,000 $ $10,000 TOTALS $128,825 $128,825 Budget Categories: Direct Labor & Benefits $8,000 $ $8,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $750 $ $750 Contractual Services $2,900 $ $2,900 Construction Services $117,175 $ $117,175 Other $ $ $ TOTALS $128,825 $ $128,825 APPENDIX 7: Engineering Project Cost Est. Summary TOTAL PROJECT COSTS24-Aug-11Greenhouse and Processing FacilityTok, AlaskaQUANTITY MATERIAL AND LABORNo. Unit PerTOTALUnits Meas. Unit TOTAL COST Hot water heating loop to addiotnal outbuilding on campusGreenhouse2400 sq.ft $10.00$24,000Processing Building600 sq.ft $100.00$60,000Extension of Heat Loop170 LF $150.00$25,500Sub Total$109,500Project Contingency15.00%$16,425.00Project Construction Costs Total$125,925A/E Design Services 9%$9,900.00Feasibility Study (completed)$4,000Soft Costs Total$13,900TOTAL PROJECT COSTS$139,825 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 5 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 1 heating boiler (fuel oil) ii. Rated capacity of generators/boilers/other • 150,000 Btu/hr iii. Generator/boilers/other type Cast iron sectional iv. Age of generators/boilers/other New – base mechanical system for the proposed greenhouse. 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 $8,000 ii. Annual O&M cost for non-labor $7,200 planting materials + $6,300 for fuel oil ($13,500 total) 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] 1,800 gal (estimated) ii. Electricity [kWh] n/a 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 $20,000 of fresh produce purchased by school district for 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 school lunches 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. Use of greenhouse to use solar to grow fresh produce for school. 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 $20,000 of fresh produce for school lunches. 4. Project Cost a) Total capital cost of new system $139,825 b) Development cost $0 c) Annual O&M cost of new system $15,200 d) Annual fuel cost $948 fuel oil plus $355 wood fuel = $1,303 total 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 1,530 gallons of fuel oil iii. Transportation b) Current price of displaced fuel $5,370 (at $3.51/gal) c) Other economic benefits $20,000 of fresh produce for school lunches. d) Alaska public benefits Decrease reliance on imported food. 6. Power Purchase/Sales Price a) Price for power purchase/sale n/a 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 3.06 (30 year analysis) Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 3 7-1-11 Payback (years) 17.3 years APPENDIX 9: Engineering Economic Summary Tok SchoolOption A.1Alaska Gateway School District, Tok, AlaskaGreenhouse and Processing Facility Date: August 24, 2011 Analyst: CTA Architects Engineers - Nathan Ratz, Jesse Vigil EXISTING CONDITIONS Existing Fuel Type:PropaneFuel Oil Fuel Units:GalGalCurrent Fuel Unit Cost:$0.00$3.51 Estimated Average Annual Fuel Usage:01,800 Annual Heating Costs:$0$6,318ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):138500Current Annual Fuel Volume (Btu):249,300,000 Assumed efficiency of existing heating system (%):80% Net Annual Energy Produced (Btu):311,625,000311,625,000 WOOD FUEL COSTWood Chips$/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.44Tons of wood fuel to supplant net equivalent of 85% annual heating load.3825 ton chip van loads to supplant net equivalent of 85% annual heating load.2 Project Capital Cost-$139,825 Project Financing InformationPercent Financed0.0%Est. Pwr Use5000kWhTypeTotal Sq.ftCost/Sq.ftTotalAmount Financed$0Elec Rate$0.350/kWhOperations2,400$3.00$7,200Amount of Grants$139,825TypeHr/WkWk/YrTotal HrWage/HrTotalInterest Rate5.00%Agriculture Professional10.040400$20.00$8,000Term10Annual Finance Cost (years)$0 17.3yearsNet BenefitB/C Ratio$427,198$287,3733.06$238,648$98,8231.71Year Accumulated Cash Flow > 01Year Accumulated Cash Flow > Project Capital Cost12Inflation FactorsO&M Inflation Rate2.0%Fresh Produce Inflation Rate4.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Discount Rate for Net Present Value Calculation3.0%YearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearCash flow DescriptionsUnit CostsHeatingSource ProportionAnnual VolumesUnits123456789101112131415202530Existing Fuel CostsHeating costs - Fuel Oil$3.511800Gallons$6,318$6,634$6,966$7,314$7,680$8,064$8,467$8,890$9,335$9,801$10,291$10,806$11,346$11,914$12,509$15,965$20,376$26,006Fresh Produce SavingsDisplaced Fresh Produce Costs$1.0020000Pounds$20,000$20,800$21,632$22,497$23,397$24,333$25,306$26,319$27,371$28,466$29,605$30,789$32,021$33,301$34,634$42,137$51,266$62,373Greenhoues and Processing Operating CostsAdditional Operation and Maintenance Costs$15,200$15,504$15,814$16,130$16,453$16,782$17,118$17,460$17,809$18,165$18,529$18,899$19,277$19,663$20,056$22,144$24,448$26,993Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$40.00100%9tons$355$366$377$388$400$412$424$437$450$463$477$492$506$522$537$623$722$837Small load existing fuel - Fuel Oil$3.5115%270Gallons$948$995$1,045$1,097$1,152$1,210$1,270$1,334$1,400$1,470$1,544$1,621$1,702$1,787$1,876$2,395$3,056$3,901Additional Operation and Maintenance Costs$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0Additional Electrical Cost $0.350$1,750$1,820$1,893$1,969$2,047$2,129$2,214$2,303$2,395$2,491$2,590$2,694$2,802$2,914$3,030$3,687$4,486$5,458Annual Operating Cost Savings$8,065$8,749$9,469$10,227$11,025$11,864$12,747$13,676$14,652$15,678$16,756$17,889$19,080$20,330$21,643$29,254$38,930$51,191Financed Project Costs - Principal and Interest0000000000 Net Annual Cash Flow8,0658,7499,46910,22711,02511,86412,74713,67614,65215,67816,75617,88919,08020,33021,64329,25438,93051,191Accumulated Cash Flow8,06516,81426,28336,51047,53559,40072,14785,822100,474116,152132,908150,797169,876190,206211,849342,162516,538746,816Net Present Value (20 year analysis):Additional Power UseAdditional Yearly OperationsSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Additional Maintenance 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