HomeMy WebLinkAboutAGSD_TAC Round V Grant ApplicationAlaska Energy Authority
Round V Grant Application
Alaska Gateway School District:
Net-Zero Training and Administration Center
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)
Net-zero Training and Administration Center (TAC)
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.
All of the communities that are part of the Alaska Gateway School District which include Dot
Lake, Eagle, Tetlin, Tanacoss, Tok, Mentasta Lake, and Northway will also directly benefit from
the expanded facilities and from the reduced operating costs for the Training and Administration
Center for Alaska Gateway School District.
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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. It is anticipated that the creation of a net-zero building
would offer similar benefits and demonstration possibilities to educational facilities throughout
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
X Other (Describe) Net-Zero Construction
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
X 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 a new 10,000 square foot net-zero Training and
Administration Center (TAC). The TAC would benefit from heat from the biomass boiler, surplus
heat created as a byproduct of the electrical generation process of the Combined Heat and
Power (CHP) system, and would also benefit from the electrical generation of the CHP.
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 will be 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.
The TAC will be a net-zero facility. The facility will reduce utility demands through low energy
building practices, such as super insulation, location on site, natural ventilation, and day lighting.
The TAC will also incorporate incorporating energy efficient building technologies such as high-
efficiency lighting, communication, and back up HVAC systems.
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 will be integrated to generate electricity which will help further offset the impact of
rising utility costs. The CHP is anticipated to be operational in the fall of 2011.
There are many anticipated benefits for creating the Training and Administration Center on the
Tok School Campus. The primary benefits among these would be energy savings, consolidated
services, further implementation of AGSD’s long term energy vision, and creating a
demonstration center for net-zero construction.
The cost for bulk heating oil delivered in Tok is $3.51 per gallon in 2011. With the integration of
the heating loop to the Training and Administration Center (TAC) 4,420 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 heat from the biomass boiler and surplus heat created during the
electrical generation process of the CHP. With the rising costs of energy and the already high
costs of utilities in Alaska there are large financial incentives to build a net zero facility. The
long term stabilization of energy costs will reduce unexpected fluctuations in the budget and will
improve AGSD’s ability to expand and enhance educational programs.
The current administration center for AGSD is located in Tok, off of the school campus, and is
divided into three buildings which total 8,500 square feet. The relocation of the administration
center will consolidate the properties of AGSD and allow for more efficient operations. Also by
consolidating the services offered a training center can been incorporated that would benefit the
community.
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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 $3,007,750.00. AGSD is applying for this
amount from the AEA Renewable Energy Fund, Round V Grant.
AGSD has allocated $100,000 in funds to start the design process. AGSD also funded the
initial feasibility study which required an allocation of $6,000.
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. $ 3,007,750.00
2.7.2 Other Funds to be provided (Project match) $ 106,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 3,113,750.00
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)
$ 3,113,750.00
2.7.5 Estimated Direct Financial Benefit (Savings) $ 11,279.00 (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.
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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
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 - 2/1/13
2/4/13 - 10/18/13
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: 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
AEA Review and Comment
Mobilization
Begin Mechanical integration with Biomass Boiler Plant
Construct TAC 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 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.
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.
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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 require integration into the newly constructed Biomass
Heating Facility, which was completed in 2010. In order to reach net-zero the Training and
Administration Center will reduce utility demands through the low energy building practices,
such as super insulation, orientation on the site, natural ventilation, and day lighting. The TAC
will also incorporate incorporating energy efficient building technologies such as high-efficiency
lighting, communication, and back up HVAC systems.
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 work outlined for the TAC , 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
required approvals from the Division of Fire and Life Safety.
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Reduction in the cost of utilities. This is not anticipated but would impact the
economics of 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.
A heat loop to the TAC will branch off of the main heat loop connecting the Biomass Plant to the
multipurpose building and Zamboni garage. It is understood that the project referenced is also
being submitted for AEA Round V Grant funding. If the project is not selected the cost of the
additional heat loop required from the TAC to the Biomass Plant will be funded by the School
District. The biomass boiler and CHP will support the energy demand for the TAC. The TAC
will be designed as a net-zero building that will focused on energy efficiency to minimize the
energy load demand of the facility.
With the annual 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
facilities, roads and highways. The State of Alaska Forestry worked to obtain a grant agreement
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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 dollars 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 three existing administration center buildings are heated with three fuel oil fired boilers. The
boiler supplying the existing maintenance office is rated at 140,000 Btu/hr output and the other
two serving the administration offices and conference facility are rated at 80,000 Btu/hr output
each.
All of these boilers listed above operate at approximately 80% efficiency.
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 three existing administration center
buildings. Based on the last three years of fuel consumption the two buildings use a combined
5,200 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 as an entire campus. However,
there will still be limited demand on the grid needed to meet peak energy demand loads for the
campus.
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.
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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 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 Training and Administration Center located on the Tok School Campus will be designed as a
net-zero facility. Net zero has several definitions but at the heart of the concept is the idea that
the building can meet its energy requirements from low-cost, locally available, nonpolluting,
renewable sources. If the concept is explored further it is the intent to generate enough
renewable energy on site to equal or exceed the annual energy use. Net Zero is inclusive of the
building demand loads, system and building efficiency, and energy generation and supply. The
TAC will be connected to the grid as it is necessary for energy balance; this is especially true for
electric energy. At times when the Tok Campus demand load is at its peak energy will have to
be pull from the grid to meet the demand load. When the demand load is less than the energy
being produced on site it can be put back onto the grid to offset the peak energy use.
The technical description of the TAC building is anticipated to be an Off-Site, Net Zero Energy
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Cost or Source Energy facility. Which is translated to a facility where the amount of energy
produced (used directly and put back on the grid) is equal to or supersedes the energy costs /
demands of the facility. Biomass is considered to be off-site because the biomass fuel is
required to be imported to the site to power the CHP and biomass boiler.
Optimum installed Capacity:
By using the heat created by the biomass boiler it is anticipated that 85% of the heating oil used
will be displaced. It is also anticipated that all of the electrical demand will be offset through net
meter with the energy created by the CHP.
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. To
satisfy the peak utility demand loads of the Tok School Campus electricity and heating oil will
have be used from the grid to supplement the amount provided from the biomass boiler and
CHP.
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.
Basic integration concept:
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 additional buildings but will be need to be reviewed. 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. A back up boiler system will be installed and interconnection
completed in such a way that if the biomass boiler system fails, is shut down, or cannot meet the
demand load, the TAC building system will automatically supply the heat to meet the building
demand.
Delivery Methods:
Heating hot water will be pumped from the Biomass Plant to the Training and Administrative
Center 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
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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.
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:
No habitat issues are anticipated as the project will be placed on developed property. 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
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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.
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. To reduce the heating demand special super insulation strategies will need to be
used. The net metering agreement has not yet been established with Alaska Power and
Telephone. If a net metering agreement is not met an island load scenario will be developed to
meet the demand electrical load.
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 and construction of
the new net-zero TAC is $3,111,750.
Requested grant funding:
A $3,005,750 grant from the Alaska Energy Authority is requested.
Applicant matching funds:
The Alaska Gateway School District has allocated $100,000 to start the design process and has
allocated $6,000 for the completion of the initial feasibility study.
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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:
$2,882,188
Project development cost of proposed renewable energy system:
$229,563
For attachments related to Section 4.4.1 please see:
Appendix 7 and Appendix 8
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
costs for the Training and Administration Center would be offset by the cost of the existing
systems that will no longer need to be maintained. 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.
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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
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 4,420 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.
The Training and Administrative Center will create a repeatable net-zero building model. The
facility can act as a demonstration model for other education facilities in Alaska, much as the
Biomass Plant has. A monetary value cannot be attached.
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. The positive accumulated cash flow analysis is going to be misleading
because it shows a long payback. The facility will produce savings by reducing the amount of
energy used and the overall energy demand of the building; however these costs savings alone
will not offset a new facility.
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.
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.
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 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.
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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 District who are
interested in exploring the integration of biomass heating to their facilities. AGSD anticipates
expanding its demonstration capabilities with the introduction of a net zero facility.
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 conceptual design and feasibility have been completed for the new facility. A working
relationship with CTA Architects and Engineers has been established to help maintain continuity
on the Tok School Campus and limit the amount of time gathering and documenting information.
The design is expect to move forward immediately with releasing the documents for Bid on the
notice from AEA of award of funding.
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
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.
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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, permitting, bidding, and construction for the extension of the
heating loop and the construction of the TAC AGSD will need $3,113,750. AGSD is applying
for this amount from the AEA Renewable Energy Fund, Round V Grant. AGSD has already
supplied $6,000 for a feasibility study. AGSD will also allocate an additional $100,000 to help
offset design costs.
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
Training and Administration Center (TAC) TAC Concept Plan – Level I TAC Conceptual Plan – Second Floor
TAC – Back Elevation
TAC – Front Elevation
APPENDIX 5:
Proposed Project Schedule
August 25, 2011TACAlaska 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: December 21, 2012Engineering Cost Estimate: December 21, 2012AEA Review & Comment: December 24, 2012-January 18, 2013Permit Application: December 24, 2012-January 18, 2013Permit Approval: February 1, 20133. CONSTRUCTIONIssuance of Bid Package: February 4, 2013Award of Bid Package: March 4, 2013Mobilization: May 6, 2013Begin Mechanical Integration with Biomass Boiler Plant: June 3, 2013Construct TAC Facility: May 13-September 27, 2013Substantial Completion/Punch list: September 27, 2013Commissioning: September 30-October 18, 2013Final Completion: October 18, 2013One Year Warranty Review: October 17, 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: Net-Zero Training and Administration Center 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 2/4/13 $5,000 $ $5,000 Award of Bid Package 3/4/13 $10,376 $ $10,376 Mobilization 5/6/13 $10,000 $ $10,000 Mechanical Integration with Biomass Plant 6/3/2013 $56,250 $ $56,250 Construction of TAC Facility 9/27/13 $ 2,201,190 $ $ 2,201,190 Substantial Completion 9/27/13 $365,079 $ $365,079 Commissioning 10/18/13 $15,000 $ $15,000 Final Completion 10/18/13 $289,218 $ $288,218 $ $ TOTALS $2,952,112 $2,952,112 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 69,924 $ $ 69,924 Construction Services $2,882,188 $ $2,882,188 Other $ $ $ TOTALS $2,952,112 $ $2,952,112
Renewable Energy Fund Grant Round V Grant Budget Form 8/24/11 Design and Permitting Phase: Net-Zero Training and Administration Center 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. ) $ $ $ Project Scoping 8/15/2012 $ 0 $ 4,000 Cash $4,000 Final System Design 12/21/2012 $42,638 $ 96,000 Cash $138,638 Engineering Cost Estimate 12/21/2012 $5,000 $ $5,000 Permit Application 12/14/2012 $2,000 $ $2,000 Update Economic and Financial Analysis 1/18/2012 $ 5,000 $ $5,000 Permit Approval 2/1/2013 $1,000 $ $1,000 $ $ $ $ $ $ $ $ TOTALS $55,638 $100,00 $155,638 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 55,638 $100,000 Cash $155,638 Construction Services $ $ $ Other $ $ $ TOTALS $ $ $
APPENDIX 7:
Engineering Project Cost Est. Summary
TOTAL PROJECT COSTS24-Aug-11Net-Zero Training and Administration CenterTok, AlaskaQUANTITY MATERIAL AND LABORNo. Unit PerTOTALUnits Meas. Unit TOTAL COST Hot water heating loop to addiotnal outbuilding on campusTraining and Administractive Center10,000sq.ft$245.00$2,450,000Extension of Heat Loop375LF$150.00$56,250Sub Total$2,506,250Project Contingency15.00%$375,937.50Project Construction Costs Total$2,882,188A/E Design Services 9%$225,562.50Feasibility Study (completed)$6,000Soft Costs Total$231,563TOTAL PROJECT COSTS$3,113,750
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 Admin Building #1:
• 80,000 Btu/hr
Admin Building #2
• 80,000 Btu/hr
Shop:
• 140,000 Btu/hr
iii. Generator/boilers/other type Cast iron sectional
iv. Age of generators/boilers/other All boilers approximately 15 years old.
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 $18,044 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] 5,200 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] 82 green tons of wood fuel
iv. Other Captured surplus heat from CHP electrical generation
4. Project Cost
a) Total capital cost of new system $2,882,188
b) Development cost $231,563
c) Annual O&M cost of new system $0 (covered by existing biomass boiler O&M)
d) Annual fuel cost $2,707 fuel oil plus $558 wood fuel = $3,265 total
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 4,420 gallons of fuel oil
iii. Transportation
b) Current price of displaced fuel $15,514 (at $3.51/gal)
c) Other economic benefits
d) Alaska public benefits Stable energy costs school
6. Power Purchase/Sales Price
a) Price for power purchase/sale
n/a
Renewable Energy Fund Round 5
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RFA AEA12-001 Application Cost Worksheet Page 3 7-1-11
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 0.14 (30 year analysis)
Payback (years) 275.9 years
APPENDIX 9:
Engineering Economic Summary
District OfficeOption A.1Alaska Gateway School District, Tok, AlaskaHeat to New District Office Date: August 24, 2011 Analyst: CTA Architects Engineers - Nathan Ratz EXISTING CONDITIONS Existing Fuel Type:PropaneFuel Oil Fuel Units:GalGalCurrent Fuel Unit Cost:$0.00$3.47 Estimated Average Annual Fuel Usage:05,200 Annual Heating Costs:$0$18,044ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):90500138500Current Annual Fuel Volume (Btu):0720,200,000 Assumed efficiency of existing heating system (%):80%80% Net Annual Energy Produced (Btu):0576,160,000576,160,000 WOOD FUEL COSTWood Chips$/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.82Tons of wood fuel to supplant net equivalent of 85% annual heating load.7025 ton chip van loads to supplant net equivalent of 85% annual heating load.3 Project Capital Cost-$3,111,750 Project Financing InformationPercent Financed0.0%Est. Pwr Use10000kWhTypeHr/WkWk/YrTotal HrWage/HrTotalAmount Financed$0Elec Rate$0.350/kWhBiomass System0.0400$20.00$0Amount of Grants$3,111,750Other0.0400$20.00$01st 2 Year Learning0.0400$20.00$0Interest Rate5.00%Term10Annual Finance Cost (years)$0 275.9yearsNet BenefitB/C Ratio$445,748-$2,666,0020.14$266,789-$2,844,9610.09Year Accumulated Cash Flow > 01Year Accumulated Cash Flow > Project Capital Cost31Inflation 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$3.475200Gal$18,044$18,946$19,894$20,888$21,933$23,029$24,181$25,390$26,659$27,992$35,726$45,596$58,194$74,272Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$40.0085%14tons$558$575$592$610$628$647$666$686$707$728$844$979$1,135$1,315Small 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$3.4715%780Gal$2,707$2,842$2,984$3,133$3,290$3,454$3,627$3,808$3,999$4,199$5,359$6,839$8,729$11,141Additional 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$3,500$3,675$3,859$4,052$4,254$4,467$4,690$4,925$5,171$5,430$6,930$8,844$11,288$14,406Annual Operating Cost Savings$11,279$11,854$12,459$13,093$13,760$14,461$15,197$15,970$16,782$17,635$22,593$28,934$37,042$47,409Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow11,27911,85412,45913,09313,76014,46115,19715,97016,78217,63522,59328,93437,04247,409Accumulated Cash Flow11,27923,13435,59248,68662,44676,90792,104108,074124,856142,492245,054376,418544,617759,911Net 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