HomeMy WebLinkAboutLower Kalskag AEA GrantCity of Lower Kalskag
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linage from Alaska Division of Community & Regional Affairs, AK Community Database Information Summaries
Application for Renewable Energy Fund Grant
Alaska Energy Authority
Round V
Lower Kalskag Water Plant Biomass System Feasibility
Study
August 2011
Contents
. Application
. Authorized Signers & Resolution
. Budget
. setters of Support
. Resumes
Renewable Energy Fund Round 5
& ALASKA City of Lower Kalskag
ENERGYAnTHORITY
Grant Application
SECTION 1— APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Lower Kalskag
Type of Entity: 2"d Class City Government Fiscal Year End June 30
Tax ID # 92-00766967 Tax Status: For -profit or ✓ non-profit check one
Mailing Address
Physical Address
City of Lower Kalskag
P.O. Box 69
City of Lower Kalskag
Lower Kalskag, AK 99626
Lower Kalskag, AK 99626
Telephone
Fax
Email
907-471-2228
907-471-2278
eclerk56@yahoo.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Title
Paul Evan Jr.
Mayor
Mailing Address
P.O. Box 69
Lower Kalskag, AK 99626
Telephone Fax
Email
907-4-1 1 907-471-2571
cclerk56(a)vahoo.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant's
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
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.
AEA 12-001 Application 7/1/2011
®ALASKA Renewable Energy Fund
�- -- ENERGY AUTHORITY Grant Application Round 5
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)
Water Plant Biomass System Feasibility Study
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.
Lower Kalskag is located on the north bank of the Kuskokwim River, 2 miles downriver from
Upper Kalskag. It lies 26 miles west of Aniak, 89 miles northeast of Bethel, and 350 miles west
of Anchorage. It lies at approximately 61.512220 North Latitude and-160.358060 West
Longitude. (Sec. 02, T016N, R062W, Seward Meridian.) Lower Kalskag is located in the
Kuskokwim Recording District. A street address is not available for the water treatment plant.
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
Transmission of Renewable Energy
Geothermal, including Heat Pumps
Small Natural Gas
Heat Recovery from existing sources
Hydrokinetic
Solar
Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance
Design and Permitting
X
Feasibility
Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The proposed project will complete a feasibility study to review the potential for a biomass
heating system for the City of Lower Kalskag (City) water treatment plant (WTP). Specifically,
the feasibility study will include the following scope items:
1. Site Visit to assess facilities to be served
2. Land use assessment
3. Forest inventory and harvest assessment (Subcontract)
4. Report Development
5. Presentation to Community
The report development will focus on site assessment; conceptual mechanical and civil
AEA 12-001 Application 7/1/2011
engineering recommendations; financial evaluation; and review of required permits.
A new WTP for the City is currently being designed by the Alaska Native Tribal Health
Consortium (ANTHC) through a cooperative project agreement (CPA) with the City. Currently,
the design for the WTP is 65% complete and is projected to be completed in mid-2012.
Following the completion of design activities, the City and the ANTHC will apply for
construction funding for the WTP improvements and it is anticipated that construction activities
will commence in 2013.
If the feasibility study shows that the biomass boiler is a viable renewable energy resource, then
the City will also apply for funding for the design and construction of a new biomass boiler
system for the WTP. This will be during the same time frame that the application for the rest of
the improvements associated with the new WTP are. The new biomass system would be used to
heat the WTP in addition to supplying heat to any fixtures that require it which may include heat
add systems, etc. This project will involve coordination with the City and the ANTHC via a
CPA.
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.)
Financial and public benefits will be analyzed in the proposed biomass feasibility study. The
financial evaluation portion of the report will include an estimate of energy displacement and
cost savings, capital cost estimate, and a simple payback schedule. It is anticipated that the
results of the feasibility study will indicate that by utilizing locally available biomass, the City
will be able to reduce its consumption of diesel fuel, cut the community's overall expenses and
pass the savings on to Lower Kalskag's residents through reduced public utility charges. Public
benefits may also include raised awareness of overall energy consumption and possibly spark
interest in reducing their carbon footprint.
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.
Based on the cost estimate completed for this project, the estimated cost to complete the
feasibility study is $60,000. The City is applying for $50,000 through the AEA Renewable
Energy fund and will contribute approximately $10,000. ANTHC will also be able to contribute
$2,000 toward personnel time and travel for the project manager.
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.
$ 50,000
2.7.2 Other Funds to be provided (Project match)
$ 14,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$ 64,000
AEA 12-001 Application 7/1/2011
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
$To be determined
including estimates through construction)
2.7.5 Estimated Direct Financial Benefit (Savings)
$ To be determined
2.7.6 Other Public Benefit (If you can calculate the benefit in
$ To be determined
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
y 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.
The Alaska Native Tribal Health Consortium, Division of Environmental Health and
Engineering (ANTHC, DEHE) will provide project management services for this project.
Sayward Fehrman is the ANTHC project manager assigned to Selawik. Ms. Fehrman's resume is
attached along with skill summaries for key project personnel.
Sayward Fehrman
Associate Engineering Project Manager
Division of Environmental Health and Engineering
1901 Bragaw Street, Suite 200
Anchorage, AK 99508
Phone: (907) 729-3079
Fax: (907) 729-4048
Email: shfehrmanr7a,anthc.org
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.)
Item
Date
Anticipated Award Announcement
August 2012
Cooperative Project Agreement (CPA) between
City and ANTHC
September 2012
Planning and seeping
September 2012
Field work and Initial Draft Report
October 2012
65% Draft Report
February 2013
Final Report and Conceptual Design
April 2013
Final Report approval by the city
May 2013
AEA 12-001 Application 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 task and associate schedule of the project include the following:
Project scoping and contractor solicitation
Completed by September 2012
Detailed energy resource analysis
Completed by November 2012
Identification of land and regulatory issues
Completed by December 2012
Permitting and environmental analysis
Completed by December 2012
Detailed analysis of existing and future energy
costs and markets
Completed by November 2012
Assessment of alternatives
Completed by January 2013
Conceptual design analysis and cost estimate
Completed by March 2013
Detailed economic and financial analysis
Completed by March 2013
Conceptual business and operations plans
Completed by March 2013
Final report and recommendations
Completed by April 2013
Over the course of the feasibility study, key decision points for this project are the project report
reviews at initial, 65% and final completion milestones. Technical and cost factors will be
evaluated at each of these points by a multidisciplinary team of engineers, construction and
operations staff along with community members and leaders.
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.
The City will partner with ANTHC for the proposed wind feasibility study and conceptual
design by entering into a Cooperative Project Agreement (CPA). ANTHC functions as a city
engineer for rural communities in Alaska and offers guidance for public works projects. ANTHC
provides design and force account construction services for the community by completing public
works facility designs and supplying supervisory construction personnel to oversee the
construction of these projects with local labor.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
1,'or this project, DEHE will use project management software to schedule and plan project
activities and promptly account for project expenditures for time, labor, direct costs, and indirect
costs through the Spectrum financial system. DEHE will assign staff accountants to generate
reports on project finances, and project managers will support the City to administer and report
on AEA deliverables according to specific project requirements.
AEA 12-001 Application 7/1/2011
3.6 Project Risk
Discuss potential problems and how you would address them.
The proposed biomass feasibility study will determine the potential risks associated with
incorporating a biomass system into the water treatment plant heating system. This information
will be included in the final report.
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 extentlamount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
The feasibility study will incorporate a forest data and harvest assessment to determine the extent
to which biomass could potentially be utilized. The financial evaluation portion of the study will
estimate the amount of fuel that could be displaced and associated cost savings of heating the
water treatment plant (WTP) with biomass boilers versus using diesel fuel boilers.
The pros of utilizing biomass as an energy resource in a heavily wooded area is that trees are
renewable, free, and proven to be an effective source that offsets diesel usage. The cons of
biomass energy include mismanagement of forested land that could result in deforestation.
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 AVEC power plant supplies energy to Lower Kalskag. Power is generated by three, 3-phase
generators: 350 kilowatt (kW), 250 kW, and 210 kW units. The generators use Number 1 fuel oil
year round. The tables below include information about the generators and fuel use at the AVEC
power plant, last updated in 2005.
Engine Inve tory
Engine Hours
Position
Engine
RPM
I kW
2000
2001
2002
2003
2004
2005
1
DDEC4
1200
236
485
5218
1
CMS KTA
1150
350
6481
5335
1
CMS KTA
1150
271
6314
5221
5581
AEA 12-001 Application 7/1/2011
2
DDEC4
1800
363
92
3475
2
CAT 3406
DI
310
1043
742
1267
888
1012
3
CMS
QSX15
1800
499
155
67
3
DDEC3
229
1427
2797
1912
1391
1705
Total 1
8784
1 8760
1 8760 1
8760 1
8784
1 8760
The existing water treatment plant (WTP) uses AVEC supplied electricity primarily to operate
the well, circulation, and pressure pumps, alarm and control systems, as well as interior and
exterior lighting. The WTP has a 120/120 VAC, 125A, single-phase electrical service. A 125A
meter/main breaker combo serves the building. The electrical service is currently fed via an
underground service. The WTP has a 120/240 VAC, 20kW standby generator for backup power.
The estimate total connected load for the building is 50.6kVA (2108.8 amps @ 120/240 VAC).
The WTP is heated by two Weil -McLain Model P-766E-W boilers that are rated at236 MBTUH
with a firing rate of 2.05-gph. The system temperature is set to 190°F.
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.
Lower Kalskag uses diesel and heating oil as the primary energy resource. The AVEC power
plant supplies electricity to the community through the use of diesel generators. Residents of
Lower Kalskag rely on heating oil for their household thermostatically controlled heaters. Most
residents also have a wood burning stove.
No impact to the existing energy infrastructure or resources is anticipated as result of the
proposed biomass feasibility study. If this study finds the biomass resource suitable, installation
of one or more biomass boilers at the new WTP is anticipated to significantly decrease the
amount of fuel oil consumption at the WTP. Operational cost savings are anticipated from the use
of biomass boilers to supply heat to the new WTP. These saving will allow the City to lower
utility bills for Lower Kalskag residents.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Existing energy in Lower Kalskag is primarily used for heat and lighting and miscellaneous
appliances and electronics in homes and public buildings. The major consumers of electricity are
the sanitation facilities including the water treatment plant, lift stations, and the water distribution
and sewage collection systems.
Due to the nature of the proposed project, a biomass feasibility study, no impact is anticipated for
energy customers at this time.
AEA 12-001 Application 7/1/2011
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
If the biomass resource proves suitable and funding is obtained, biomass boilers would be
installed to heat the water treatment plant.
The purpose of the biomass feasibility study is to gather background information in order to
design a conceptual plan for a future biomass boiler facility either adjacent to or connected to the
future WTP. Therefore, due to the nature of the proposed project, the information requested for
the system design is unknown at this time. The feasibility study will investigate each of these
bullet points.
The potential barriers to success of this project include permitting, and construction funding.
Construction funding will be easier to obtain with a complete design and permits in hand.
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 City owns the land on which the WTP is proposed (and associated potential biomass boiler
system) to be located. As such, no land ownership issues are anticipated.
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
The feasibility study will conduct a brief assessment of required permits for a future design and
construction project. The following are potential permits that may be required for construction of
the proposed system.
Potential
Activity
Environmental
Agency
Permit
Impact
Biomass boiler facility
Wildlife habitat
US Fish and Wildlife
Section 7 consultation
construction and
Service (USFWS)
operation
AEA 12-001 Application 7/1/2011
Biomass boiler facility
Historic preservation
State Historic
SHPO concurrence
construction and
Preservation Office
operation
(SHPO)
Biomass boiler facility
Land use/zoning
AK Department of
Consultation
construction and
Natural Resources
operation
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
ANTHC considers all potential environmental concerns associated with each project. ANTHC
has extensive experience using the comprehensive Indian Health Service (IHS) environmental
review procedures for conducting environmental analyses of all health and sanitation facilities
projects in all stages of development, as outlined in the IHS Environmental Review Manual
issued in January 2007.
Although there will be no construction activities associated with the proposed feasibility studies,
ANTHC will study, analyze, and evaluate environmental impacts and benefits. During the
feasibility study stage, consultations will be conducted with applicable federal and state agencies.
Environmental agency and tribal consultations and the analyses of potential environmental
impacts and benefits will be compiled and documented in the environmental reviews and permit
applications as the projects progress into design and towards construction. All federal and state
approvals and applicable permits must be obtained prior to the initiation of construction activities.
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
AEA 12-001 Application 7/1/2011
Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
The total anticipated project cost is $64,000. The amount being requested from the AEA
Renewable Energy Fund is $50,000. The remaining $14,000 will be provided as in -kind resources
from the City of Lower Kalskag and the ANTHC as documented by the City resolution and
ANTHC letter of commitment (attached).
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.)
The feasibility study will determine costs for future wind turbine operation and maintenance.
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
Power Purchase/Sale information will be identified during the feasibility study. However, since
the City will own and operate the WTP of which the biomass boiler system will be a part of, it is
not anticipated that power purchase/sale will be part of the future operation of the biomass boiler
system.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Cost benefit worksheet is not required for the proposed feasibility study.
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
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy
rp oject: The possible displacement of diesel fuel and cost used to heat water treatment plant will
AEA 12-001 Application 7/1/2011
be determined through the feasibility study.
Anticipated annual revenue/Potential additional annual incentives/Potential additional annual
revenue stream: Because this project is in the feasibility and conceptual design stage, revenue and
incentives are unknown.
Non -economic public benefits: The anticipated benefits of installation of the biomass boiler
system would include the reduction of negative impact of the cost of energy by providing a
renewable energy alternative. This project could help stabilize energy costs and provide long term
socio-economic benefits to the community. Locally produced, affordable green energy would
empower community residents and could help avert rural to urban migration.
This project would help with the understanding of the biomass resource in western Alaska. Data
acquired from this study may assist other nearby communities to understand their biomass
resources.
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
The financing for the O&M of the system will be financed through the City's water and sewer
revenue collections. The collection and preparing of biomass for the boiler system as well as the
regular daily operation of it will be the major components that are associated with the on -going
support costs. The City has partnered with the ARUC for the management of its water and sewer
system and complete operational information such as monthly expenses for operation of the
system are maintained. Existing information can be compared with future O&M costs to
determine the extent of the savings that will be realized due to this project.
SECTION 7 — READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
The City and ANTHC have discussed project related roles and responsibilities and will be able to
execute the scoping of the project within one month of the award announcement. No project
milestones have been accomplished to date and no other grants have been awarded to this project.
ANTHC has been able to meet requirements for previous grants, both state and federal.
The City of Lower Kalskag employs an administrator who is technically proficient with several
AEA 12-001 Application 7/1/2011
different computer programs and operating office equipment. The City Administrator has the
capacity to support the administrative aspects of this project and to maintain consistent
correspondence with the grantor as well as its project partners.
Identified options for completing the feasibility study include:
• ANTHC engineering services
• Contractual engineering services
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 following organizations and personal support the proposed project:
• Alaska Rural Utility Collaborative
• Yukon Kuskokwim Health Corporation
• The Native Village of Lower Kalskag
• Alaska Native Tribal Health Consortium
• Lower Yukon School District
Association of Village Council Presidents Regional Housing Authority
Refer to attached letters of support and commitment and the City's resolution.
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
The City of Lower Kalskag is requesting grant funds in the amount of $50,000 for the proposed
biomass boiler system feasibility study for the water treatment plant. In -kind contributions from
the City and ANTHC will total $14,000. To date, no other grant funds or investments have been
sought or allocated to this project.
The section below provides detailed information for each budget category as shown in the
attached Grant Budget form (attached).
Budget Categories:
Direct Labor & Benefits — Amount of requested funds is $29,753 to cover the cost of engineering
staff, which includes permitting and environmental analysis, identification of land and regulatory
issues, detailed energy resource analysis, energy market analysis, assessment of alternatives,
conceptual design, and a business and operations plan. ANTHC will provide an in -kind
contribution of up to $2,500 in personnel time for the project manager.
Travel and Per Diem — Amount of requested funds is $3,000 to cover the cost of the design
engineers to travel to Lower Kalskag for data collection as well as design review meetings with
the community at each stage of the feasibility study.. The City will provide an in -kind
AEA 12-001 Application 7/1/2011
different computer programs and operating office equipment. The City Administrator has the
capacity to support the administrative aspects of this project and to maintain consistent
correspondence with the grantor as well as its project partners.
Identified options for completing the feasibility study include:
• ANTHC engineering services
• Contractual engineering services
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 following organizations and personal support the proposed project:
Alaska Rural Utility Collaborative
• Yukon Kuskokwim Health Corporation
• The Native Village of Lower Kalskag
• Alaska Native Tribal Health Consortium
• Lower Yukon School District
• Association of Village Council Presidents Regional Housing Authority
Refer to attached letters of support and commitment and the City's resolution.
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
The City of Lower Kalskag is requesting grant funds in the amount of $50,000 for the proposed
biomass boiler system feasibility study for the water treatment plant. In -kind contributions from
the City and ANTHC will total $14,000. To date, no other grant funds or investments have been
sought or allocated to this project.
The section below provides detailed information for each budget category as shown in the
attached Grant Budget form (attached).
Budget Categories:
Direct Labor & Benefits — Amount of requested funds is $30,000 to cover the cost of engineering
staff, which includes permitting and environmental analysis, identification of land and regulatory
issues, detailed energy resource analysis, energy market analysis, assessment of alternatives,
conceptual design, and a business and operations plan. The City will provide an in -kind
contribution of $2,000 for the water treatment plant operator's time toward the project. ANTHC
will provide an in -kind contribution of up to $2,500 in personnel time for the project manager.
Travel and Per Diem — Amount of requested funds is $3,000 to cover the cost of the design
engineers to travel to Lower Kalskag for data collection as well as design review meetings with
AEA 12-001 Application 7/1/2011
the community at each stage of the feasibility study. The City will provide an in -kind
contribution of up to $2,000 to cover any additional travel costs. The ANTHC will provide an in -
kind contribution of up to $1,500 to cover travel and per diem costs for the project manager.
Equipment — The City will provide an in -kind contribution for equipment as well as provide use
of the ATV and fuel, up to $2,000.
Materials and Supplies - Amount of requested funds is $2,000 to cover the cost any
miscellaneous tools, hardware, and software. The City will provide an in -kind contribution to
supplement the requested amount for materials and supplies for up to $1,000.
Lodgine — The City will be able to provide lodging during the feasibility study as an in -kind
contribution of up to $2,000. No funds are requested for lodging in the design phase of the
project.
Contractual Services — Amount of requested funds is $15,000 to cover the cost of contractual
services to conduct the forest inventory and harvest assessment portion of the feasibility study.
The subcontractor will research the existing forest inventory data to determine the resource
capacity for future harvesting to be used for the biomass boiler system.
Please refer to the attached Grant Budget worksheet for more detailed budget information
AEA 12-001 Application 7/1/2011
/ORITY
� ALAUTAUTENERGYHKA
Renewable Energy Fund
Grant Application Round 5
SECTION 10—ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant's Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant's
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name
SignatureIX
Title
/1
A A
Date
,SJf / C`S� � %
AEA12-001 Grant Application Page 14 of 14 7/1//2011
Authorized Signers & Resolution
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name:
City of Lower Kalskag
Regular Election is held: Date:
Authorized Grant Signer(s):
Printed Name
Title
Term
Signature
cMk-eSi-o(*gtl�ci,-
�C6'
ki-;�C'M
DILI
P00\1
C, tvie�, -et-
3 ct v.�al2
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
Title
Term
Signature
�o.0 van Sr.
/\Aa cr
.35r etas
Grantee Contact Information:
Mailing Address:
PO Box 69 Lower Kalskag, AK 99626
Phone Number:
907 471-2228
Fax Number:
907 471-2278
E-mail Address:
cclerk56@yahoo.com
Fiscal Year End:
June 30
Entity Type For -profit or non-profit status):
Non-profit
Federal Tax ID #:
�. •• o c� 7 42 G
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to: /CD MM
Alaska Energy Authority
813 W. Northern Lights Blvd. CD
Anchorage, AK 99503 ENERGY AUTHORITY
Attn: Butch White, Grants Administrator
CADocuments and Settings\shfehrman\Application Data\OpenText\DM\Temp\DEHE-#165607-v1-
AEA_2011_Grant_Documents_Autho rized_S ign a rs.doc
08/15/2011 02:31 4712228 CITY LOWER. KALSKAG PAGE 01
Council Resolution for Alaska Energy Authority Funding
Renewable Energy
City of Lower Kalskag
RESOLUTION # 011-007
A Resolution requesting Funding from the Alaska Energy Authority. Alaska Renewable Energy Fund
and commitment by the City Of Lower Kalskag
WHEREAS: The City Of Lower Kalskag City Council, hereinafter called the Council, is a governing bodyin
the City of Lower Kalskag, Alaska, and
WHEREAS: The Alaska Energy Authority, hereinafter called AEA, may provide assistance necessary to
help address the energy needs of our community
WHEREAS: The Council desires to seek and utilize renewable sources of energy in order to lower costs
for residents while making our community more economically viable and sustainable Into the future
in order to guarantee our way of life for current and future generations
WHEREAS: The council authorizes the Alaska Native Tribal Health Consortium, hereinafter called the
ANTHC, to work with the City Of Lower Kalskag to develop, Implement and manage the project for
which we are seeking funding from AEA
NOW THEREFORE BE IT RESOLVED; that the City Council hereby requests that the AEA appropriate $
50,000 through the Renewable Energy Fund to complete the design and construction of the biomass
boiler system in Lower Kalskag water treatment plant.
BE IT FUTHER RESOLVED; that the Council grants authority to the individual signing this resolution to
commit the City Of Lower Kalskag to obligations under the grant
BE IT FUTHER RESOLVED; the City of Lower Kalskag is in compliance with applicable federal, state and
local laws Including existing credit and federal tax obligation
BE IT FUTHER RELOLVED; that the ANTHC is hereby authorized through a Cooperative Project
Agreement to negotiate, execute, and administer any and all documents, contracts, expenditures and
agreements as required for the City Of Lower Kalskag and managing funds on behalf of this entity,
including any subsequent amendments to said agreements.
BE IT FUTHER RESOLVED; that the Council hereby authorizes ANTHC or its representatives to enter
upon or cross community land for the purposes of assisting the Council in caring out this project.
BE IT FUTHER RESOLVED; The City of Lower Kalskag will commit $10,900 in the form of in -kind
contribution to this project as indicated in the application.
08/15/2011 02:31 4712228 CITY LOWEP, KALSKAG PAGE 02
I, the undersigned, hereby certify that the Council is composed of _7 members of
who _4 , consulting a QUORUM were present and the forgoing resolution was
PASSE® AND APPROVED by the Council this _1S_ day of _August. 2011.
Vote:-5 Yeas-0—Nays;
Paul Evan Jr.
Mayor J'Q
ATTEST_ Council Member
Budget
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Letters of Support
*Alaska Native Tribal Health Consortium
Division of Environmental Health and Engineering
1901 Bragaw Street • Suite 200 • Anchorage, AK 99509-3440 • Phone: (907) 729-3600 • Fax: (907) 729-4090 • www.antlic.org
August 24, 2011
Paul Evan
Mayor, City of Lower Kalskag
PO Box 69
Lower Kalskag, AK 99626
Dear Mayor Evan:
Re: Letter of Commitment for matching funds to a proposal for Alaska Energy Authority,
Renewable Energy Funds Round V.
It is with pleasure that the Alaska Native Tribal Health Consortium (ANTHC), Division of
Environmental Health and Engineering (DEHE) is partnering with the City of Lower Kalskag on
your proposed project to the Renewable Energy Fund of the Alaska Energy Authority. Your
project for a biomass boiler system feasibility study for the new water treatment plant is one of
exceptional importance to the future energy needs of your community and one that ANTHC
DEHE fully supports.
In support of your project, ANTHC DEHE will commit $4,000 as an in -kind match in the form
of personnel and travel time for the ANTHC project manager. The matching funds will be
tracked and reported to you, as required for purposes of quarterly reporting to the Alaska Energy
Authority, if you are awarded their grant.
We wish you every success on your proposal and look forward to working with you on this
important project.
Sincerely,
Steven M. Weaver, P.E.
Senior Director
QLOWER YUKON SCHOOL DISTRICT
11.0. Box 32089 • Molltain Village. Alaska 99632
Phone: (907)591-2411 ext.2003 Fax:(907)591-2449
www.lowervukon.ore
.John Lamont
Superintendent
August 23, 201 1
City of Russian Mission
Agnes Hoosier
City Administrator
P.O. Box 49
Russian Mission, AK 99657
Dear Ms. Hoosier:
;>
m1i
0
Robert Reed
Director of Maintenance
The lower Yukon School District (I-YSD) is pleased to submit this letter in support of the City
of Russian Mission's Alaska Energy Authority grant application seeking funding for the design
and construction of a project to capture and utilize waste heat from the power plant and using it
to supply heat in the water treatment plant as well as the three adjacent LYSD-owned teacher
housing units. In addition to providing a more sustainable power base for the operation of the
water treatment plant, the use of this technology has the potential of lowering the utility rates for
the local school allowing more funding to be spent toward education.
In our effort to support the City of Russian Mission, the LYSD will make an in -kind contribution
to the project in the form of free lodging at the school. The typical $50/night lodging fee at the
Russian Mission School will be waived for any of the City's partners who will be working on the
project. The District will require a 48 hour advance notification for the lodging.
Should you have any questions regarding this letter of support, please do not hesitate to contact
the undersigned at (907) 591-6290
Sincerely,
/4xte
obert G.Reed
Director of Maintenance and Facilities
Lower Yukon School District
Cc: Sayward Fehmian. ANTHC Project Manager
CHILDREN HIM'
AlA.A ISmmonnl F4vga Nay xmlik Al,"Wl Mi Villnke Mini Smlinn 11itku Mn.1 Rw,im Miaim, S=nmon B.% Sheldon Iblm
Alaska Rural Utility Collaborative
Division of Environmental Health & Engineering
1901 Bragaw Street, Suite 200
Anchorage, Alaska 99508
Telephone:1-800-560-8637 ezt.5692
Direct Line: 1-907-729-5692
Facsimile: (907) 729-4506
July 27, 2011
The Honorable Paul Evan
Mayor, City of Lower Kalskag
PO Box 69
Lower Kalskag, Alaska 99626
Dear Mayor Evan:
Re: Support Letter for the Lower Kalskag biomass boiler study grant
The Alaska Rural Utility Collaborative (ARUC) has partnered with Lower Kalskag to
provide water/sewer system operation and maintenance for the community. ARUC fully
supports the City of Lower Kalskag's Alaska Energy Authority grant application for a
study to determine the feasibility of a biomass boiler project to provide heat to the water
and sewer utilities. Lower Kalskag should be a good location for this technology, as
evidenced by the number of local residents that heat with wood. Other more
conventional technologies such as recovered heat from power plants are not available, as
the power plant is several miles from the water plant.
We've seen similar projects lead to reduced heating costs in other rural water/sewer
facilities such as Tanana. This translates directly into lower monthly water bills for local
residents, schools, and businesses and more money kept in the local economy by
purchasing firewood from local residents. We see this as a way to make communities
more self-sufficient, and of reducing the burning of very expensive heating fuel. With
the high cost of energy and living in this rural community, anything that can be done to
reduce energy usage and utility costs to local residents is critical.
In summary, we fully support this grant application.
Sin rely,
Jolm Nichols
ARUC Manager
YUKON-KuSKOKwIM HEALTH C'ORPORATRON
YKFIC'Worl<ing Together to Achieve Excellent Health"
July 25, 2011
Lower Kalskag Traditional Council
Natashia Jackie Levi, Tribal Administrator
PO Box 27
Lower Kalskag, AK, 99607
Dear Ms. Levi:
Re: Letter Supporting the Lower Kalskag Traditional Council, Alaska Grant Application
The Yukon-Kuskokwim Health Corporation would like to submit this letter supporting the
Alaska Energy Authority grant application being submitted by the Lower Kalskag Traditional
Council and their efforts to reduce their reliance on fossil fuels and shift toward more sustainable
and environmentally friendly resources. This project has the potential to not only reduce the
amount of fuel used in supplying treated water to the community but also has the secondary
health benefit of reducing the amount of combustion byproducts introduced into the community.
We enthusiastically support the efforts of the Lower Kalskag Traditional Council to build a
biomass boiler for the water treatment plant.
Sincerely,
Jennifer Dobson
Environmental Health Services Manager
Yukon Kuskokwim Health Corporation
Cc: Sayward Fehrman, ANTHC
P.O. Box 528 • Bethel, Alaska 99559 • 907-543-6000 • 1-800-478-3321
village of
Village of Lower Kalskag
PO Box 27
Lower Kalskag, AK 99626
Phone #: (907) 471-2379 Fax #: (907) 471-2378
Email: village_of lower to@yahoo.com
To: City of Lower Kalskag — Mayor Paul Evan Jr.
PO Box 69
Lower Kalskag, AK 99626
Date: August 15, 2011
Re: Letter of Support — Water Plant Biomass System Design Funding Request —
Lower Kalskag, Alaska
Dear Mayor Evan:
The Village of Lower Kalskag Traditional Council is pleased to submit this letter
of support for the City of Lower Kalskag Alaska Energy Authority grant application
seeking to obtain funding for to design a biomass system for use at the water treatment
plant.
It is our understanding that this project will design the mechanical and civil
engineering plans and specifications for installation of a biomass boiler. Rising fuel and
power costs are problematic for our community on a number of levels, especially for our
residents, and we are optimistic that this design will enable us to utilize local power,
reduce our fuel consumption and power costs, and make our community more
sustainable.
In addition, this project will promote economic growth in the community of
Lower Kalskag by providing jobs for local residents.
Should you have any questions regarding this letter of support, please do not
hesitate to contact the undersigned at (907) 471-2379.
Sincerely,
Nastasia Levi
President & Tribal Administrator
�t
"Nastasia :, -cv--D
Evan
Vice President
Cc: Sayward Fehrman, ANTHC Project Manager
VI
The Association of Village Council Presidents
Regional Housing Authority
1 PO Box 767
405 Ptarmigan Road
o Bethel, Alaska 99559
\1
t
Main r (907)-543-3121 Fax (907)-543-3933 Toll Free (800)-478-4667
July 22, 2011
City of Lower Kalskag
Mr. Paul
City Administrator
P.O. Box 69
Lower Kalskag, AK 99626
Dear Mr. Paul:
Re: Letter of Support— Design and Construction Funding Request— Lower Kalskag, Alaska
The Association of Village Council Presidents Regional Housing Authority is pleased to submit this letter
of support for the City of Lower Kalskag's Alaska Energy Authority grant application that seeks to obtain
funding for the design and construction of an alternate energy system. It is our understanding that this
project will design and construct a biomass boiler system to provide heat for the water treatment plant in
Lower Kalskag. As with all other remote villages, rising fuel and power costs are problematic on a
number of levels, but are especially difficult for the community members. We are optimistic that this
project will present the community with the opportunity to utilize locally available resources to reduce
their fuel consumption and power costs and make the community more sustainable.
Sincerely,
Ron Hoffman
CEO/President
AVCP Regional Housing Authority
Cc: Mark Spafford, ANTHC Project Manager
Resumes