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HomeMy WebLinkAboutSeward KPBSD_GrantApplication Renewable Energy Fund Round 5 Grant Application AEA 12-001 Application Page 1 of 23 7/1/2011 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org Grant Application Form GrantApp5.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet 5.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget5. doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetIn structions5.doc Instructions for completing the above grant budget form. Authorized Signers Form Authorized signers form5.doc Form indicating who is authorized to sign the grant, finance reports and progress reports and provides grantee information. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 2 of 23 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Kenai Peninsula Borough School District (KPBSD) Type of Entity: Local Government Fiscal Year End: June 30 Tax ID # 92-0030923 Tax Status: For-profit or X non-profit ( check one) Mailing Address 148 N. Binkley St. Soldotna, AK 99669 Physical Address 148 N. Binkley St Soldotna, AK 99669 Telephone 907-714-8888 Fax 907-262-9645 Email davejones@kpbsd.k12.ak.us 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Dave Jones Title Assistant Superintendent Kenai Peninsula Borough School District Mailing Address 148 N. Binkley St. Soldotna, AK 99669 Telephone 907-714-8857 Fax 907-262-9645 Email davejones@kpbsd.k12.ak.us 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 23 7/1//2011 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) Seward Schools Biomass Heating System 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. Location – latitude and longitude or street address or community / communities served: The proposed project will serve the community of Seward, AK, located on the Kenai Peninsula. The three locations for the project are: 1. Seward Middle School, 304 Sea Lion Avenue, Seward, AK 99664 2. William H. Seward Elementary School, 606 Sea Lion Avenue, Seward, AK 99664 3. Seward High School, P.O. Box 1049, Seward, AK 99664 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 X Design and Permitting X Feasibility X Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The proposed project will finalize the feasibility and conceptual design, build, and install a wood-fired hydronic heating system in three Seward schools. Phase I, Reconnaissance Study was completed in July, 2011. (See attached reports) This proposed Seward Schools Biomass Heating System project will implement the following multi-phased process: • Phase II, Finalize Feasibility Analysis and Conceptual Design. • Phase III, Final Design of a wood-fired hydronic heating system to heat the combined Seward High, Middle and Elementary School campus with woody biomass fuel. • Phase IV, Construction, Commissioning, and Operation of the heating system and follow up reporting on operation and maintenance. The project is designed to proceed without the delay of additional grant year cycles. Reports from a 2011 preliminary feasibility assessment and a 2011 District energy evaluation will serve as the reference documents for this project. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 23 7/1//2011 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) 1. Annual Energy Savings: KPBSD strives to minimize overhead costs, including energy bills, so that more funds may be allocated to educational programs. The proposed biomass system will offset at least 80% of the oil used for heat in the combined Seward schools campuses. A Preliminary Feasibility Study (Pre-FS) titled “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in Seward, AK,” (Dan Parrent, USDA Forest Service) was created in July 2011, which evaluated the potential for heating the Seward school facilities with pellet-fired boilers. The Pre-FS indicates annual savings estimates of about $28,000 at the Elementary School, $63,000 at the Middle School, and $148,000 at the High School. An analysis of the Pre-FS is titled “Seward, AK Project Assessment Review and District Energy Evaluation” (USFS Wood Education and Resource Center- WERC). The WERC Report reviewed the conclusions of the Pre-FS report, and discussed the possibility of adding the City-owned Assisted Living Center to the school District heating system, and of adding a steam turbine to produce electrical power. These options appear viable, however time constraints required a simplified school-only heat-only grant proposal. The three (3) school buildings in the proposed system currently use approximately 134,000 gallons of fuel oil annually at a cost of $502,500 (at $3.75/gallon). Installing a 2MMBtu/hr biomass pellet boiler system would offset over 80% of this fuel oil usage producing an annual savings of approximately $239,000. 2. Job Creation: National Renewable Energy Lab (NREL) has stated in their publication, The Value of U.S. Biomass Power, that 4.9 jobs are created for every megawatt of biomass power generated. Based on this data, the proposed project could result in another ten (10) jobs for the District. 3. Education and Increased Awareness: This project will be visible to the entire community, students, and their families. Using successful Alaska biomass models for school sites, KPBSD will leverage the project to engage students and community members for raising awareness about sustainable forest management, carbon sequestration and biodiversity, and wood products development. The KPBSD proposes that spending less public money on heating schools will increasingly benefit the public, such that more funds may be allocated to educational programs. 4. State-wide Benefits: Renewable energy biomass projects save on costs of imported fossil fuels, lower overall emissions and offer additional environmental and health impact benefits to all of Alaska, mainly from the use of renewable fuels versus fossil fuels. Biomass Energy adds the benefit of economic localization, using locally or regionally-produced fuels versus imported fossil fuels that contribute little to the local economy. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 23 7/1//2011 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total project cost is estimated to be $1.476,485, of which the grant request is for $1.436,517, for a multi-phase project to deploy a biomass school heating system. The $39,968 balance will be added by the KPBSD in cash and in-kind contributions to the project (salaries and fringe, plus $10,000 cash). KPBSD requests that the grant be approved for 3 phases of the project, (FS, Design, and Construction). The project phases will be subject to go/no-go decision thresholds at the review and approval by AEA of the sequential phases. Phases could then proceed without the delay of additional grant year cycles. It is anticipated that the project funding will come from the AEA Renewable Energy Fund. The KPBSD will contribute cash and management resources for the project. o PHASE I Reconnaissance is complete. A “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in Seward Alaska” and an “Assessment Review and District Energy Concept Evaluation” have already been completed and are submitted with this application. o PHASE II Request: $69,053 Level 2 Feasibility Study and Conceptual Design o PHASE III request $100,000 Final Design and Permitting including Costing and Contractor Solicitation, Permitting and Environmental work, and updated economic analysis. o PHASE IV Request: $1,267,464 Construction and Commissioning 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. $ 1,436,517 2.7.2 Other Funds to be provided (Project match) $ 39,968 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 1,476,485 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) $ 1,476,485 2.7.5 Estimated Direct Financial Benefit (Savings) Total 20 Year Benefit: $146,100 (Year One) $2,922,000 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.) Economic localization and school operation cost stabilization Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 23 7/1//2011 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. PROJECT MANAGER(S) Mr. David Jones, Assistant Superintendent of Kenai Peninsula Borough School District, will manage the project. Additionally, KPBSD will contract with a professional project coordinator for all phases of the project. Mr. Jones will oversee labor for the project, engineering firms and consultants, procurement processes, management of construction contractors, selection of heating system equipment, review of plans and specifications, on-site inspections, and review and approval of work, and other duties to ensure that the completed work conforms with the requirements of the grant and the construction documents. He will work closely with Mr. Steve Atwater, Superintendent of Schools, and with the KPBSD Director of Planning and Operations, Mr. David Spence, through the project completion, and according to District policies and procedures. In addition, he will coordinate all financial reporting and requirements through Laurie Olson, the KPBSD Director of Finance. Time for his participation has been budgeted for his salary and fringe for: Phase II: twelve (12) hours per month Phase III: twenty (20) hours per month Phase IV: thirty (30) hours per month His remaining time needed for the project will be contributed as in-kind to the project, and is estimated that another eight (8) hours per month may be needed to complete the project (more time will be required during construction, than during the beginning Phase II and III). (KPBSP commitment letter and District organizational chart is attached) Mr. Jones has been with the KPBSD since 2007, and among his current responsibilities, he oversees Planning and Operations for the District. He has more than twenty (20) years of school administration experience, including Director of Finance, Business Management. He has worked in school administration here in Alaska for the past fourteen (14) years. Mr. Jones received his Bachelor of Arts degree in Business Administration and also in Political Science at Concordia College in Minnesota, and has continued his education, including studies at the University of Montana School of Law in Missoula, Montana. Mr. Jones’ biography is attached. PH: 907.714-8857 Cell: 907-539-5959 Email: djones2@kpbsd.k12.ak.us References o Steve Atwater, Superintendent of Schools Kenai Peninsula Borough School District PH 907-714-8888, FAX 907-262-9645 o Donna Peterson, Retired Superintendent of Schools, KPBSD 52856 Tenakee Loop, Kenai, AK 99611 Doc.donnapeterson@gmail.com PH 907-398-4335 o John Sedor, Attorney, Sedor Wendlandt Evans Filippi, LLC 500 L Street, Suite 500, Anchorage, AK 99501 sedor@alaskalaw.pro 907-677-3600 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 23 7/1//2011 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.) Upon award of funding, the project is estimated to require 14 months to complete, outlined in the table below: ACTIVITIES START DATE END DATE Phase II: Feasibility Analysis, Conceptual Design 8/1/12 3/30/12 1) Project Scoping; AEA project approval and notice to proceed; present grant contract to School Board, sign documents; contractor selection (develop RFPs for feasibility study and conceptual design, and select contractors) 8/1/12 10/31/12 2) Proposed System Design to include detailed resource assessment; assessment of project site; conceptual system and integration design. 11/1/12 2/28/13 3) Environmental assessment of resources that may be significantly affected by the project 11/1/12 2/28/13 4) Proposed Energy Resource analysis of sources availability and delivered cost to system. (Please note: the Existing Energy System Assessment has been completed; see attached reports.) 11/1/12 2/28/13 5) Project Costs conceptual level estimates for the final design and construction of the wood fired hydronic heating system, (to include on-site storage building for the biomass fuel); annual O & M cost estimates; other anticipated project cost estimates 11/1/12 2/28/13 6) Project Benefits analysis that includes annual fuel displacement and savings over the project life and discussion of non-monetary benefits 11/1/12 2/28/13 7) Analysis and Recommendations for project design and construction activities; draft operational and business plan; evaluate go/no go decision threshold; review process & approval by AEA 3/1/13 3/30/13 Phase III: Final Design and Permitting Requirements 4/1/13 6/30/13 1) Update data and contracts; complete project scoping and contractor solicitation 4/1/13 4/30/13 2) Permits: Obtain any necessary permits, address any rights-of-way issues, and confirm site control. (see attached letter for site control) 4/1/13 4/30/13 3) Project Benefits: Complete detailed financial analysis 4/1/13 4/30/13 4) Business and Operational Plan: Complete operational and business plan; incorporate feedback from the go/no go decision threshold; review process & approval by AEA 4/1/13 4/30/13 5) Environmental: Identify and resolve any environmental issues 4/1/13 4/30/13 6) Existing Energy System: Final engineered and approved energy system configuration, including upgrades 4/1/13 5/30/13 7) Proposed System Design: Integration design 4/1/13 5/30/13 8) Project Cost: Finalize engineer’s estimate of project costs 4/1/13 5/30/13 9) Go/No Go Review; AEA review and approval of final design and cost estimates 6/1/13 6/30/13 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 23 7/1//2011 Phase IV: Construction, Commissioning, Operation, and Reporting 7/1/13 8/30/13 1) Renewable Energy Resource: Continuous monitoring to verify and update design, projections, and system efficiency. 7/1/13 9/30/13 2) Proposed System Design: Construction planning and scheduling; complete bid documents; modifications to final design during construction; System equipment procurement and ordering; Construction mobilization begins; order materials for building construction; begin site preparation. 7/1/13 7/31/13 3) Project Cost: Actively track project costs with vendors and project management against the project budget; Propose budget modifications as needed; manage cost overruns. 7/1/13 9/30/13 4) Environmental: Environmental monitoring as required throughout construction 7/1/13 9/30/13 5) Permitting: Reporting as required by permitting agencies for construction. 7/1/13 7/30/13 6) Analysis and Recommendations; Calibrate and test system; final inspections; Prepare final project report including as-built specifications and drawings, final budget, schedule, and recommendations; Periodic operation and maintenance reports as required by grant, including actual O&M, fuel, and equipment costs; O&M measures and schedule; energy output; project availability; conversion efficiency, renewable energy resource; and recommendations as required by the Authority. 9/1/13 9/30/13 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 proposed project is designed as a multi-phase project that will utilize a “go/no go” decision threshold upon the delivery, review, and approval by AEA of the Phase I L2 FS and Conceptual Design. This process will finalize the design and cost estimates and will enable the project to proceed with construction during the summertime ‘building months’ and to complete the project before school starts - without the delay of additional funding application cycles. Phase II tasks are expected to take place from August 2012 through February 2013, as outlined below and in 3.2. Project Schedule. Phase II: Feasibility Analysis, Conceptual Design Milestone Completion Date 1. Project scoping and contractor solicitation completed 10/31/2012 2. Detailed resource assessment completed 2/28/2013 3. Permitting and environmental analysis completed 2/28/2013 4. Conceptual design and costs estimate completed 2/28/2013 5. Detailed economic and financial analyses completed 2/28/2013 6. Conceptual business & operations plan completed 2/28/2013 7. Final report and recommendations completed 3/30/2013 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 23 7/1//2011 Phase III: Final Design and Permitting A targeted effort will be executed to complete the construction and commissioning before school starts, near the end of August, 2013. Phase III tasks are expected to take place from April 2013 through August 2013. Milestone Completion Date 1. Project scoping and contractor solicitation completed 4/30/13 2. Permit applications completed as needed 4/30/13 7. Updated economic and financial analyses completed 4/30/13 8. Final business and operational plan completed 4/30/13 3. Final environmental assessment & mitigation plans completed 5/31/13 4. Permitting, rights-of-way, site control completed 7/30/13 5. Final system design completed 8/30/13 6. Final cost estimate completed 9/30/13 Phase IV: Construction, Commissioning, Operation, and Reporting Milestone Completion Date 1. Design and feasibility requirements completed 4/30/13 2. Bid documents completed 5/31/13 3. Construction of heating system in three Seward schools 8/30/13 4. Integration and testing of heating system 8/30/13 5. Final acceptance, commissioning and start-up complete 8/30/13 6. Operations reporting 10/30/13 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. KPBSD has sufficient time, qualified staffing and available on-site resources to successfully complete the proposed project and intends to hire contractors for various stages of the project (i.e., feasibility, design, and construction). In addition, KPBSD has site-control for the proposed heating system and related construction process. (See attached site-control letter) Following is a brief description of personnel and resources available to the project: Personnel Dr. Steve Atwater, Superintendent of Schools for the entire Kenai Peninsula Borough and is the Authorized Signer for the project. He is responsible for designating the Project Manager and directs the planning of all educational features of new buildings or alterations of old buildings. Dr. Atwater acts as the authorized agent of the District in all official governmental interactions related to school facilities. In conjunction with the borough, he is involved in the preparation of bids, award of contracts and collaboration with the construction process. PH 907-714-8888 FAX 907-262-9645 Mr. David Jones, Project Manager, and Assistant Superintendent of Kenai Peninsula Borough School District. (See above, 3.1. for brief bio, contact information, and description of project responsibilities.) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 23 7/1//2011 Mr. Dave Spence, Director of Planning and Operations for the District since 1997, provides maintenance support to all schools and departments of KPBSD. He serves as the chair on Building Advisory Committees and will work closely with the Project Coordinator and will oversee the construction and installation of the new system as the Site Maintenance Supervisor. Time for his participation has been budgeted for his salary and fringe for: Phase II: twelve (12) hours per month Phase III: twenty (20) hours per month Phase IV: thirty (30) hours per month Additional time will be contributed as in-kind to the project, and is estimated that another twelve (12) hours per month may be needed to complete the project (more time will be required during construction, than during the beginning Phase II and III). (KPBSP commitment letter is attached) Mr. Spence currently coordinates capital projects and major maintenance with various KPBSD departments and follow-up on site inspections conducted by the Department of Environmental Conservation and the State Fire Marshal. This expertise will be valuable for working through each of the processes proposed for this project, and in close alignment with Dave Jones, for coordinating labor and installation of the new system and assisting with reporting requirements. He oversees all OSHA, ADA, and AHERA requirements and issues and is responsible for preparing a preventative maintenance plan for the Department of Education and Early Development. Prior to his current position, Mr. Spence served in administrative positions such as principal and adjunct faculty at schools and UAA since 1990. His biography is attached. PH: 907-714-8820 Cell: 907-398-4436 Email: dspence@kpbsd.k12.ak.us References o Dave Jones, Assistance Superintendent PH: 907.714-8857 Cell: 907-539-5959 Email: djones2@kpbsd.k12.ak.us o Steve Atwater, Superintendent of Schools, Kenai Peninsula Borough School District PH 907-714-8888, FAX 907-262-9645 o Donna Peterson, Retired Superintendent of Schools, KPBSD 52856 Tenakee Loop, Kenai, AK 99611 Doc.donnapeterson@gmail.com PH 907-398-4335 Ms. Laurie Olson, Director of Finance, will be responsible for management of the budget, including purchasing, tracking expenses, and overall financial oversight. Her current responsibilities are to supervise and oversee payroll, accounts payable, grant reporting, fixed assets, and Medicaid reimbursement activities. Ms. Olson coordinates the development of the annual budget and creation of budget documents, annual financial audit and financial reports, and provides other support and assistance to KPBSD schools and departments on financial matters. In addition to her role described above for the project, Ms. Olson will work with the Mr. Jones and Mr. Spence to track project costs versus budget. She will also be responsible for managing budget revisions and reporting any cost overruns during monthly budget report to the school board. Time for her participation has been budgeted for her salary and fringe for ten (10) hours per month for Phase II, Phase III, and for Phase IV. Additional time that is anticipated for this project will be contributed as in-kind to the project; it is estimated that another eight (8) hours per month may be needed for financial management needs of the project, including reporting (more time will be required during construction, than during the beginning Phase II and III). (KPBSP commitment letter is attached) PH: 907-714-8852 Email: laurie@kpbsd.k12.ak.us Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 23 7/1//2011 Contractors KPBSD will go out to bid for a Project Coordinator, and contractors for feasibility, design and construction tasks. KPBSD will require that contractors certify that they are authorized to do business in the State of Alaska and provide proof of licensing and insurance. Contractors will be required to have sufficient knowledge and experience to successfully fulfill their contract. Therefore, contractors who are familiar with wood fired hydronic heating system installation will be given priority for selection. Contractors will supply all equipment, labor and materials necessary to accomplish the project. The process will include the Project Manager and project team drafting an RFP according to KPBSD procurement policies. Equipment Services/Suppliers Contractors will provide equipment necessary for design, construction and deployment. The KPBSD will provide access to existing heating systems to allow integration. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The KPBSD has adopted a 2011/2012 Strategic Communications Plan, which details both the internal communications between staff and the external communications with contractors, officials, parents, and students. Once project funds are released, KPBSD and its subcontractors will have regular meetings as needed to update progress on design criteria, alterations to building design, materials orders and delivery schedules, hiring qualified skilled labor and additional sub- contractors necessary and when needed, site conditions, pre-construction action plan, installation of any measurement and verification resources, as well as health and safety issues. At all meetings, notes will be taken and AEA will be invited to attend. Once on site, KPBSD will make weekly site visits and report weekly progress to AEA. AEA will be copied on the most relevant email correspondence. A more formal monthly report will be issued to AEA and copied to KPBSD Public Works Director. KPBSD’s intention is for a successful, transparent and cooperative project. The Project Manager (Dave Jones) is required to keep daily work logs for the Superintendent and check in weekly. Monthly reports are required to be produced for the school board and Superintendent. Monthly reports will be made available to the AEA or as otherwise required. The construction manager will be required to submit questions or changes for answers/approval to the Project Manager and to the Superintendent. Daily written reports will track the progress of the project, and monthly reports will be required for submission to the School Board. The Site Maintenance Supervisor (Dave Spence) will produce a daily report on the status of the project. The weekly status summary will be reported to the Superintendent and Project Manager and summarized for the School Board’s monthly packet; this in turn will be sent to the AEA on a monthly basis (or as requested) by the Alaska Energy Authority. Maintenance work logs and work orders will be maintained at the District Office. A monthly financial report is required for the School Board on all projects, along with a project report, and will be maintained by the Director of Finance. These reports detail expenditures and progress for the school board and the Superintendent. A copy of the School Board minutes and the School Board packet are on file at the KPBSD District Office and will be available on the District’s website for viewing. The project team is required to report to David Jones on a weekly basis. Written progress reports are sent to the School Board and the Superintendent on a monthly basis. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 23 7/1//2011 3.6 Project Risk Discuss potential problems and how you would address them. Certain risks are consistent with inclement weather here in Alaska. This includes a disruption of ordered supply materials due to late winter breakup or extreme weather conditions such as spring or summer flooding, icy roads, or heavy snowfalls. KPBSD will address this risk with ample lead time planning in order to be ready for project risks. Construction is planned for the summer months, so most of these risks are considered minimal. Safety issues of employees exist with overhead work at roof heights. In order to address this potentially dangerous risk, KPBSD will require that employees will be trained in safety and rescue. Existing safety rules will be enforced, including restricting access to construction areas and setting up barriers to worksites. Additionally, a first aid certified worker will be on site and a safety and rescue plan will be in place before work begins. Construction site safety risks will be addressed by the contractor pursuant to KPBSD existing policies. Equipment warranties will be assembled and added to the operations and maintenance manual. The School Board recognizes the importance of having complete and factual information as the basis for developing and maintaining cooperation among District staff, parents/guardians, students, state and local governmental and planning agencies, and other business and community representatives in developing District plans. Board policies have been developed to assure a comprehensive approach to projecting and planning needs for construction projects. According to Board Policy 7100 (Construction) the following elements are to be considered in planning school facilities: 1. The expanding and changing educational program of the District including the number of children to be served and their specific educational needs. 2. The impact of proposed facilities on the community and considerations regarding community use of the facilities. 3. Safety and welfare of students. 4. The relationship between existing and new facilities. 5. Community planning and zoning requirements. 6. Other site specific information which provides guidance in the planning of facilities. 7. The forecasted enrollments and demographic factors. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 23 7/1//2011 SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. • The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The Pre-FS estimated the pellet requirements for all 3 schools to be approximately 1,200 tons per year. Wood pellets are commercially available from both in-State and import sources. A commercial pellet mill with a capacity of 30,000 tons per year is operational in North Pole, and other in-State mills are in development. Several sources of pellets in bulk or bagged form are available from the Pacific Northwest and from Canada are available by truck or barge to Seward. Wood chips are not readily available in commercial quantities in the Seward area at this time. 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 existing heating systems in all three Seward schools are fuel-oil fired hydronic boilers as follows: o Elementary School -2 Kewanee KW 4.5-220-X oil boilers, 1704MBH, 22 years old o Middle School -2 Hurst FB300-30 oil boilers, 1876 MBH, 6 years old o High School -2 Cleaver Brooks oil boilers, 1983 MBH, 28 years old These existing systems can remain in place to provide reliable back-up for a pellet boiler system as needed. Pellet systems require similar maintenance and operations labor as oil burners and automated fuel supply, where chip-fired or cordwood systems require significantly more labor and fuel storage space. Pellet boiler systems are typically estimated to offset 90% of fuel oil usage, although anecdotal data puts the offset at as much as 99% in some cases. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 23 7/1//2011 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. ISER data shows fossil fuel heating oil costs varying higher and lower, but the overall trend line for the last 20 years has been up. It has traditionally been readily commercially available, and is relatively easy to transport and store. Biomass fuels tend to be locally or regionally produced, as transportation costs are higher than liquid fuels. Infrastructure for transport of woody biomass fuels is currently being developed in Alaska. Development of the Commercial and Industrial market for woody biomass fuels will strengthen the developing industry for renewable and locally-sourced fuels. Conversion of school heating systems will provide “anchor tenant” customers for Alaskan pellet providers. Alaska DNR, Division of Forestry, along with other native and private forestry-consulting firms has published numerous biomass resource assessment documents for Alaska. The consensus is that annual biomass growth tonnage in Alaska is several times the tonnage that would be needed to heat every building in Alaska. The U.S. Forest Service estimates that there are 4.81 million hectares (11.87 million acres) of land in Alaska not reserved in parks and wilderness areas capable of producing at least 1.38 cubic meters per hectare/year (20 cubic feet per acre-year) of wood. Thus, assuming an average higher heating value of the average Alaska species mix at 7.98 GJ/m3 (204,000 Btu/CF), Alaska forests are capable of producing at least 52.97 million GJ/yr (48.4 trillion Btu/yr)—equivalent to approximately 1.32 billion liters (350 million gallons) of #2 diesel per year, or 12 times the annual diesel consumption for power generation in rural Alaska communities. - Crimp, Colt, Foster; Renewable Power in Rural Alaska: Improved Opportunities for Economic Deployment; 2007 Although the above excerpt of the Crimp, Colt, Foster report talks about power production, the applicability to thermal uses is obvious. By any reasonable accounting, Alaska grows more than enough woody biomass to sustainably provide fuel for the majority of schools in the State. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The fossil fuel oil heating market is well established and mature. It is unlikely that the emerging use of woody biomass for heating fuel will have any significant effect on the fossil fuel industry in Alaska for many years. Conversely, the establishment of markets for renewable woody biomass fuels will enhance the development of the biomass fuel industry, including the development of biomass densification facilities for producing pellets, pucks and briquettes, as well as woodchip suppliers and distributors. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 23 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 • Delivery methods A Wood Pellet hydronic heating system, fired by standard commercial wood pellets is proposed for the Seward School buildings. Separate pellet boilers could be installed in each school, and integrated into each school’s existing hydronic heating system. A single larger boiler, installed at the High School and connected by buried insulated piping, could also connect to all three schools and be integrated into each heating system. A single boiler would require only one fuel storage hopper and less overall maintenance. The Level II Feasibility Study during Phase II will research the benefits of each option. At this point, it is estimated that a 2MM BtuHr system could provide at least 90% of the heat required for the school buildings and the pool, require approximately 1100 tons of wood pellets annually, and be compatible with the existing heating systems in all three schools. Wood pellet systems are less expensive than woodchip systems, require less maintenance, and operate nearly as simply as oil-fired boilers. 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 situated near the high school on Kenai Peninsula Borough owned property which has been designated for school purposes and is available for KPBSD under delegated authority to implement this project with full access and site control. A letter from the Kenai Peninsula Borough Land Management Officer is included with this proposal. KPBSD is aware of and assumes all liabilities arising from the ownership and operation of the project. KPBSD will not sell, transfer, encumber, or dispose of any of its interest in the facilities constructed with AEA grant funding during the economic life of the Project without prior written approval of the Authority. (See attached letter) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 16 of 23 7/1//2011 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers Permits for construction and operation will be researched in Phase III Design, and applied for as required. KPBSD will consider – as part of its research – permits that may be needed from Federal, State, or Local governments, such as EPA, DEC, State Fire Marshal, DNR, and other applicable agencies. It is anticipated that the following permits will be required: • Building Permit • Air Quality Permit • Fire Marshal permit 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 Environmental issues will be researched in the Phase III Design stage, and KPBSD will comply with applicable state and local environmental standards, including without limitation, applicable laws for the prevention of pollution, management of hazardous waste, and evaluation of environmental impacts. It is not anticipated that any significant environmental issues will need to be addressed, as pellet boilers have proven to be extremely clean burning and emit less toxic emissions than existing oil-fired boilers. Per AEA requirements, grant funds will not be used for environmental investigation, removal or remediation of contamination, remediation of existing facilities or properties, or any other environmental matters, unless specifically provided in the Grant Agreement. In addition, grant funds will not be used for the decommissioning or removal of any existing facilities. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 23 7/1//2011 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. KPBSD is requesting $1,436,517 from AEA. KPBSD has committed $39,968 in cash and in- kind contributions as match to the project. Funding will be provided from the District’s general fund. The total cost of the project is $1,476,485. Costs were estimated based on a combination of industry standards, similar projects in Montana, and the Pre-FS and WERC Review. Transportation costs and local expertise are some of the additional considerations incorporated for this rural Alaskan project. The Budget Worksheet is included, which details costs for the project, including the KPBSD contributions. The KPBSD participated in the Pre-FS and the WERC Project Assessment Review and District Energy Evaluation.1 This process established the feasibility of the project and justified the next steps for the District; Level 2 Feasibility Study, Design, Construction, and Commissioning. KPBSD will continue to invest its own resources as needed to complete the project as proposed and for O & M that will be required after the construction and integration has been completed. The projected capital cost of the proposed heating system is $1,064,968. The projected development cost for the project is $411,517. The Budget Worksheet is attached with this application. 1 These activities were paid for by the USDA Forest Service. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 18 of 23 7/1//2011 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Estimated O & M costs for the heating system are $12,000 per year. In addition, KPBSD is aware of the Authority’s requirements for Performance / O&M reporting for five years after the project completion. KPBSD is prepared with staff and funding resources from its General Fund to provide these reports, which will include: (1) a detailed description of Project operations and maintenance activities and issues; and (2) a detailed description of Project performance, including energy output, estimated fuel savings resulting from the operation of the Project, and any other relevant measures of Project performance reasonably requested by the Authority, a description of repairs and modifications to the Project, and recommendations for improvements for similar future projects. 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 N/A 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. The Project Cost Worksheet has been attached with the application. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 19 of 23 7/1//2011 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The Seward schools (Elementary, Middle and High school, and the pool) currently use 134,000 gallons of diesel fuel oil. The proposed 2MMBtu pellet boiler is estimated to use 1100 tons of wood pellets to offset 90% (120,600 gallons) of diesel. The cost savings are $146,000 per year at current rates. Revenue from tax credits or carbon credits is not calculated in this proposal. Given the inexorable cost escalation of fossil fuels, the benefits of converting to renewable fuels will include cost reductions and stabilization, while lowering toxic stack emissions and potential hazards of fuel spills. The State of Alaska gains actual value and energy independence when its natural resources are used inside Alaska, or refined to add value before export. Economic localization is the benefit derived from using local fuel and local labor to provide heat for public buildings. The money circulates inside the communities and the State, strengthening local and regional economies. 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 mission of the Kenai Peninsula Borough School District, in partnership with its rich diverse communities, is to develop creative, productive learners who demonstrate the skills, knowledge, and attitudes to meet life’s challenges, by providing stimulating, integrated learning opportunities in a safe, supportive environment. The role of District Office is to anticipate and meet the needs for accomplishing the District’s mission. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 20 of 23 7/1//2011 The existing school staff and building maintenance processes will be expanded to include operations of the biomass system. In many other schools (Montana, Vermont, etc), this process has been effective in reducing overall costs while maintaining staff levels and building comfort levels. The cost savings from the existing purchases of fuel oil will more than offset the costs of wood pellet fuel, and operations and maintenance of the new system. Existing systems will remain in place as backup. In other systems, as mentioned above, the life of existing systems is extended by their limited use. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. PHASE 1 Reconnaissance was completed earlier this summer (July, 2011). A “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in Seward Alaska” and an “Assessment Review and District Energy Concept Evaluation” have already been completed and are submitted with this application. Both reports are included as attachments with this application • The Preliminary Feasibility Study (Pre-FS) titled “Preliminary Feasibility Assessment for Wood Pellet Heating at KPBSD Schools in Seward, AK,” (Dan Parrent, USDA Forest Service) was created in July 2011, which evaluated the potential for heating the Seward school facilities with pellet-fired boilers. • An analysis of the Pre-FS was conducted, titled “Seward, AK Project Assessment Review and District Energy Evaluation” (USFS Wood Education and Resource Center- WERC). The WERC Report reviewed the conclusions of the Pre-FS report, and discussed the possibility of adding the City-owned Assisted Living Center to the school District heating system, and of adding a steam turbine to produce electrical power. A regularly scheduled Kenai Peninsula Borough School District Board of Education meeting was conducted on July 11, 2011. At this meeting, Mr. Daniel Parrent of the USDA Forest Service spoke to the Board regarding the possibility of heating the Seward area schools with wood pellets and to apply for grant funding through the USDA Forest Service and the Alaska Energy Authority to pay for the necessary mechanical systems. He reviewed the possible cost savings to the District. Mr. Jones recommended the Board authorize the administration to take actions necessary to move forward with the application for funding through the Renewable Energy Fund Grant offered by the Alaska Energy Authority. The Board voted unanimously move ahead with the project. (Meeting minutes are on file with the District office and are available upon request.) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 21 of 23 7/1//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. Local support has been offered to this project on many levels, from residents to the municipality, and from Borough and the School Board. KPBSD is not aware of any opposition regarding this project. Several letters of support have been included with this application as follows: o KPBSD School District: A letter of full support for this project has been submitted from Superintendent Steve Atwater, stating the benefits that this project will bring to the school District. The letter also states the District’s commitment to cash and in-kind match. o KPBSD Board of Education: As explained above in Section 7, ‘Readiness’ the KPBSD Board of Education supported and authorized this application, and to move ahead with the project. A letter of support is included which verifies this support. The letter also states the District’s compliance with grant requirements, and is signed by the KPBD Board President. o The Kenai Peninsula Borough verifies with an attached letter that the property for this project has been made available for KPBSD under delegated authority to implement this project with full access and site control for this project. o The City of Seward has actively promoted energy efficiency in their municipal buildings throughout the community, including the Alaska SeaLife Center. In their attached letter of support, they reiterate their concerns for increasing costs of energy and their desire to make renewable energy options more attractive for public use buildings. They see this project as an opportunity to promote that effort and are fully in support of this proposed project for the Seward schools. o Alaska SeaLife Center strongly supports the District’s AEA Round V application and has submitted a letter of support expressing their appreciation for the opportunity offered by AEA, which promotes renewable energy use in Alaska. o Resurrection Bay Conservation Alliance has expressed their support in an attached letter outlining their appreciation for efforts being made by the District to provide cost savings to the community of Seward. They also noted their hope for this project – to set a standard for the state of Alaska and rural Tribal communities to replicate the effort. o Community members are also personally interested in the project, especially because it will explore the potential for cost savings and cost stability for renewable heating fuels in the community. A letter is included from Seward resident, Sue McClure, expressing support for this effort. A letter of support is also attached from Lynn Hohl, (who is a community member and also a Kenai Peninsula Board of Education Member), which expresses her personal support for the project. Ms. Hohl outlines six bulleted reasons which detail the benefits of the project to the District, including that (if funded) the Seward schools would be the first in the Kenai Peninsula District to benefit from a renewable energy source. o Qutekcak Native Tribe has expressed their support for efforts towards cost savings to schools, and has provided a letter of support explaining measures they are also taking towards creating a greener workplace and cleaner environment. o Forest Service Seward Ranger District has submitted a letter of support that explains how this project aligns with many of the steps that they have taken towards a smaller carbon footprint. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 22 of 23 7/1//2011 SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form – GrantBudget5.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. KPBSD is requesting $1,436,517 from AEA. KPBSD has committed $39,968 in cash and in- kind contributions as match to the project. Funding will be provided from the District’s general fund. The total cost of the project is $1,476,485. The Budget Worksheet is included, which details costs for the project, including the KPBSD contributions. The KPBSD participated in the Pre-FS and the WERC Project Assessment Review and District Energy Evaluation.2 This process established the feasibility of the project and justified the next steps for the District (Level 2 Feasibility, Design, and Construction). KPBSD will continue to invest its resources as needed to complete the project as proposed and for O & M that will be required after the construction and integration has been completed. The Grant Budget Worksheet is attached, which outlines the milestones for this project. The spreadsheet below summarizes the costs for each Phase of the project, the total AEA request, the KPBSD cash and in-kind contribution, and the total project cost. BUDGET SUMMARY AND PROJECT TOTALS Budget Categories PHASE II PHASE III PHASE IV AEA Request Grantee Match TOTAL PROJECT Direct Labor & Benefits $21,553 $7,985 $22,464 $52,002 $29,968 $81,970 Travel & Per Diem $2,500 $2,000 $2,000 $6,500 $0 $6,500 Equipment $0 $0 $900,000 $900,000 $0 $900,000 Materials & Supplies $0 $0 $0 $0 $10,000 $10,000 Contractual Services $45,000 $89,515 $225,000 $359,515 $0 $359,515 Construction Services $0 $0 $115,000 $115,000 $0 $115,000 Other $0 $500 $3,000 $3,500 $0 $3,500 PROJECT TOTALS $69,053 $100,000 $1,267,464 $1,436,517 $39,968 $1,476,485 2 These activities were paid for by the USDA Forest Service.