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HomeMy WebLinkAboutCRNA- AEA GrantApplication_R.5 Renewable Energy Fund Round 5 Grant Application AEA 12-001 Application Page 1 of 20 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 20 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Copper River Native Association (on behalf of Native Village of Tazlina) Type of Entity: Tribal Government Fiscal Year End Calendar Tax ID # 92-0041638 Tax Status: For-profit or X non-profit ( check one) Mailing Address P.O. Box 87 Glennallen, AK 99588-0087 Physical Address Drawer H, Mile 104 Richardson Highway Copper Center, AK 99575 Telephone 907.822.4375 Fax 907.822.5865 Email tazlinajulie@cvinternet.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Gary Hays Title Workforce Development/HR Manager, CRNA Mailing Address Copper River Native Association Drawer H Mile 104 Richardson Highway Copper Center, AK 99576 Telephone 907-822-5241 Fax 907-822-5200 Email GHay@crnative.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes or No 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes or No 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes or No 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes or No 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 20 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) Type in your answer here and follow same format for rest of the application. Multi Disciplinary Combined Facility (“MDCF”) Primary Care Center Biomass Feasibility Project 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: Tazlina, AK. 61.95° North Latitude and -145.31° West Longitude (Project area includes: Gulkana, Gakona, Chistochina, Chitina, Kluti-Kaah (Copper Center) and Tazlina; potentially Glennallen, Tok, Valdez 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. This project is to help ascertain the feasibility of using biomass and/or other wood-based alternative energy source to provide long-term sustainable energy sources for a 30,000 s.f. Multi- Disciplinary Combined Facility (“MDCF”) in the Copper River Valley region. The planned facility located in Tazlina, AK, has already been accepted as a Phase II Site Selection and Evaluation Report (“SSER”) schematic approved eligible Joint-Venture Project by the Indian Health Service. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 20 7/1//2011 The results of such an analysis will help determine if alternative energy sources can reduce long term operating costs over the life of this planned primary care facility, help to ascertain if an expansion of existing CVEA power facilities utilizing biomass sources nearly Glennallen is warranted, or, if separate, stand-alone biomass-based power units housed within or attached to separate facilities is a more efficient business model. 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.) It is expected due to increasing base and shipping costs of diesel and other fossil fuels, that the viability of either utilizing a “stand-alone” approach, cogeneration, or shared-costs approach purchasing other biomass based electricity regionally may reduce long term operations costs of a 30,000 s.f primary care center to be located in Tazlina, Alaska, as well as obtain marginal energy cost benefits for the entire Copper Valley. Efforts at developing hydro power by Copper Valley Electric Association (CVEA) are ongoing, but it is unclear how economically feasible such proposals are at this time. Any O&M cost reduction will result in more efficient services, reduced reliance on distant energy sources, and allow for these marginal cost savings to pass-through to funders, clinic patients, and other stakeholders. Additionally, depending on the feasibility study outcome, other ideas may be suggested for energy savings and/or energy distribution region wide. Given the assumptions documented later, utilizing wood biomass as an energy source could displace up to 125,000 gallons of fuel oil for heat and electricity generation of the facility, with an expected cost savings of nearly $1 million after 5 years. (Please reference in the attached Cost/Benefit Worksheet data and operating assumptions.) 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. This project is proposing to utilize AEA grant funds primarily, with Copper River Native Association (CRNA) staff and management oversight of grant support, to include RFP scope preparation, RFP publication and grant contract management, performance oversight and reporting as in-kind. The Native Village of Tazlina will be considered the applicant, providing contract oversight in concert with CRNA. Attached is a support letter from the Copper River Native Association speaking to its lead status in this project; the Native Village of Tazlina has indicated it will issue a Memorandum of Understanding authorizing Copper River Native Association to act on its behalf. A letter of support from the Native Village of Tazlina is attached. Total initial feasibility costs are expected to be $143,643 with direct costs totaling $110,705 and indirect costs totaling $32,658. Requested AEA grant funds are $132,523, with local contributions described above as $10,840, or 8% of total project costs. Numbers submitted as part of the Cost Worksheet examine a scenario where traditional boiler Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 20 7/1//2011 systems for the proposed facility are compared against a HELA (High Efficiency, Low Emission) wood fired boiler system, with costs compared. These numbers are estimates, and are separate from the feasibility study request which is intended to formalize this information, and arrive at a full cost/benefit analysis. 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. $ 132,523 2.7.2 Other Funds to be provided (Project match) $ 10,840 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 143,363 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) $ 2.12 million over 5 years 2.7.5 Estimated Direct Financial Benefit (Savings) $ 3.24 million over 5 years (net savings $1.1 million) 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.) $ 82,500/yr in job creation benefits Estimated job creation as a portion of the savings realized from wood fired boiler system implemented as part of the MDCF facility to be finished in 2014. Jobs creation multiplier assumptions: - After initial capital investment recapture year, $228,887 annual savings in energy costs can be “re-sunk” into harvesting of biomass resource, and related administrative work. - Per “Updated Employment Multipliers, for the U.S. Economy, (2003)” agriculture, mining forestry multipliers show 20.3 jobs/$1,000,000 in revenue. Extended estimates yield 7.7 jobs as a result of the saved in fuel costs, adjusted downwards given size of markets in Alaska. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 20 7/1//2011 - SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for s uccessfully 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. Gary Hays of Copper River Native Association, current Workforce Development and Human Resources Manager, will act as Project Manager. He currently presides over the Copper Valley Development Agency (CVDA) in Copper River. His contact information follows: Gary Hay Copper River Native Association Drawer H, Mile 102 Richardson Highway Copper Center, AK 99605 Ph. 907-822-5241 GHay@crnative.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.) See attached CRNA Project Schedule for a detailed schedule. 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.) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 20 7/1//2011 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. This project will utilize the expertise of expert engineering firm(s) that will be able to ascertain a comprehensive picture of the overall energy “market” for Copper River Basin biomass produced energy, derive a comprehensive picture of biomass energy cost and availability at a likely delivered price, and produce recommendations that integrate and formalize information already obtained from various sources. This information will then be used to estimate a likely cost scenario for possible biomass utilization for CRNA’s proposed MDCF. Contractors will be vetted according to their expertise in providing similar levels of alternative energy and construction expertise, experience in adequately performing like projects, and cost points. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 20 7/1//2011 Staff expected to be overseeing contract administration and implementation will be: Paula Vrana, Chief Executive Officer, CRNA Gary Hay, Workforce Development & HR Director, CRNA Barry Fowler, Chief Financial Officer, CRNA Don Schindler, Grant Writer/Planner, CRNA Enclosed is a letter of support on behalf of Ahtna, Incorporation, from Joe Bovee, Lands Manager for the corporation. He is apprised of the effort, and is supportive of those endeavors that help reduce energy costs for badly needed primary care center that will benefit CRNA beneficiaries particularly, and likely all upper Copper River valley residents. This feasibility study and associated consensus building process is designed to will continue and extend recent dialogue between major energy providers and other consumer groups within the region. Beginning with the Copper Valley Development Agency’s Regional Strategic Plan (CEDS) process which identified in 2003 and again in a 2009 update the need to look to mechanisms to reduce energy costs and explore energy development was highlighted. Additionally, private land holders such as Ahtna have engaged the process of identifying their energy resource-based opportunities (AHTNA Regional Tribal Energy Strategy, 2009); as have other entities such as the Gateway School District (Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating in Tok, Alaska) and others. As projects become viable and reach consensus, specific plans to identify best market-based energy utilization scenarios are appropriate. Outreach to CVEA has already been underway (see attached CVEA Strategic Issues, 2003) which documents the history of ongoing the regional planning efforts and some of the strategic efforts of this cooperative. The plan proposes an ongoing Steering Committee that will include assigned staff from CVEA as part of the planning and scoping process looking specifically at biomass generation and non-hydro energy planning in the upper Copper Valley area. Members representing all major energy stakeholders, to include CVEA, will constitute the planned Steering Committee perhaps as an adjunct body to the CRDA. Please see attached resumes for the primary staff associated with this project. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. As funds are not expected to be dispersed until after award decisions are made approximately in early 2012, with notification to follow, we expect the project to begin in Spring, 2012. We have given a timetable of May 2012 to begin solicitation of consultant, with award completed by the end of that month. Timetable for project deliverables are already included; they are fairly standard items when exploring feasibility and “proof of concept.” Project duration is expected to continue through September of 2012, with a Final Report to incorporate village input presented to major stakeholders. A completed Final Report with recommendations will be submitted to the Authority. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 20 7/1//2011 3.6 Project Risk Discuss potential problems and how you would address them. 1. Since this is a feasibility assessment project, a form of business risk might be that technology may change as decisions and recommendations are made, and as such, render these conclusions less than efficient. This is a risk in any technology-based venture, and is difficult to mitigate. Insuring a most recent design by hiring the most knowledgeable consultants experience in technology trends related to biomass is important. 2. Stakeholder collaboration and ownership is vital to a regional effort that integrates information from a variety of sources, ownership interests, and divergent us er groups. To insure long term interest and viability in such a project, individual and corporate interests must be addressed on a larger scale, as it is a reasonable assumption that economies of scale would demand that sustainable utilization of biomass energy sources must be rationally obtained and cooperatively used. To the extent this can be demonstrated, natural resources can be better utilized, economic leverage obtained, and project viability insured. 3. Information gleaned from prior studies and recommendations should be adhered to inasmuch as situational challenges remain comparable. In other words, it is important to build on prior efforts of other organizations that have prompted the request for this study as part of a larger regional development effort. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 20 7/1//2011 4. 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. After several years of study, public information regarding the availability, sustainability, type and quality of biomass has been studied in the Upper Copper River area. Primarily sourced from these prior studies, estimates have been made regarding the quality and quantity of woody biomass source around the Glennallen region. A mixture of public and private sources have provided the following gross estimates of woody sources: Private (Ahtna Land holdings) : Total Tonnage (entire tree) 3,440,000 State of Alaska Lands- Glennallen Total Tonnage “ “ 2,497,118 Importantly, the State has further estimated a volume of sustainable timber that can be harvested annually, and is stated at 21, 231 tons, or about .85% (.0085) of the total. This ratio was applied to Ahtna acreage; also, yielding a total estimated annual sustained yield of 29,248 tons. These are gross estimates for the immediate Glennallen area, and are for preliminary feasibility purposes only. The combined estimated tonnage available is 50,479 per year. For the purposes of simplicity, the various tree strata energy capacities, variations in distance and costs to harvest, and other factors typically affecting energy value and costs were ignored. 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. For the purposes of understanding the benefits, if any, of utilizing biomass, a scenario was constructed that proposes traditional heating system costs and benefits be compared to utilizing a HELE (High Energy, Low Efficiency) biomass fueled heating system for the 30,000 s.f Multi Disciplinary Combined Facility (MDCF). Information is available that can look at energy consumption of this center within the larger context of energy demand and supply within the Copper Center region, but this was left to other contexts and purposes; for an AEA feasibility application, we care concerned about availability of biomass as an alternative fuel source. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 20 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. Copper Valley Electric Association (CVEA) has been noting an expected increase in both demand and prices of fuel oil for some time. It heavily relies on several operations, notably the Solomon Gulch hydroelectric project and Cogeneration plant in Valdez associated with the Port of Valdez harbor operations. Diesel fuel demand increases dramatically in the winter, and while there have been recent upgrades to the Glennallen generation facility, with the price of oil increases, rates have also increased steadily. The CVEA system has a capability of producing slightly over 33 MW, and has explored other hydro options at Allison Lake and other sites. Using a HELE based biomass system is expected to meet the energy needs of a large hospital-like facility, along with some administrative offices. Estimates are that annually roughly 17 -20 MMMbtu (billion btu’s) will be needed annually to heat and provide electricity. This is based on a $577 kbtu/sf/yr assumption, derived from a national estimate of hospital facilities’ energy use.i This is roughly double the national average, given the climate zone and number of heating days. While this likely is not necessarily a problem as far as regional electrical consumption is concerned, it may place additional burdens on wintertime heating consumption especially, and will vary according to site specifications and factors such as efficiency, heating/cooling systems utilized, etc., which is unknown at this point in time. A detailed feasibility study could examine in detail the draw such a facility would generate. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. As a feasibility project, the emphasis now is on whether biomass will provide sufficient and sustainable energy for the life of the primary care facility referred to as the MDCF. A quick review of the latest annual report from CVEA shows that its hydro power is tapped extensively during summer “flow” months, and internal combustion (diesel generation) is utilized during the winter. As referenced in Figures 1 and 2 below, sources of electrical generation in the Copper River region vary by month, and are driven by water flow, winter snow accumulation and other factors. Solomon Gulch is a major source of electrical energy. Figure 2 shows some historical data regarding power generation capacity- it is obvious the dependence on non-hydro power is increasing. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 20 7/1//2011 Fig. 1 Fig. 2 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 20 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 Currently, the Gateway School District in Tok is utilizing a design for high pressure operations, with a steam electric generator added later. While this makes sense for a 30,000 s.f. primary care center to be located in Tazlina, the results from comparable small hospital or pr imary care facilities should be compared, and integrated with the latest in biomass technology by way of scenario building to arrive at a “best outcome.” This would be an expected major outcome of the feasibility study. Early cost estimates of New Horizon ECO Line or BioMass Combo HELE type boilers average around $4,000 for wood capable boilers; delivery included will likely double the cost. Given the heat requirements of a 30,000 s.f. building, it is estimated that at least 4 (or equivalent ) 400 kbtu units would be required to heat such a large facility, meeting about 79% of all energy needs. Transport of local wood fuel to a Tazlina site, per the State of Alaska Glennallen Forestry Inventory documentii at $120/ton, would represent a large part of overall O&M cost, and best means to conduct such an effort are not formalized yet. 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. Private lands under discussion are primarily Ahtna lands. Discussion with Joe Bovee, who, in response to this same opportunity, has attempted to suggest ways of utilizing biomass energy within the Ahtna region, proposing several buildings within the area to be provided heat and electricity via a pelletized boiler system. He is aware of this feasibility effort on behalf of our regional primary care center (MDCF), and supports it as Lands Manager. The attached support letter attests to this, even as a Lands Committee needs to oversee details such as lands access fees, etc. It is unforeseen what exact type of oversight may be requested. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 20 7/1//2011  Anticipated permitting timeline  Identify and discussion of potential barriers Burning permits related to NEPA or air standards are likely to be needed, as well as the normal permits as part of completion of a large capital construction project, but this should not be a major concern as HELE boilers are designed to burn efficiently and will likely meet federal EPA standards “out of the box.” As with any wood burning project, emissions and possible inversion effects need to be considered. 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 The MDCF facility has gone through a preliminary examination of NEPA issues as part of the federal process for initial funding of the MDCF. The effort for now is to better identify these issues. To a great extent these are already being addressed in the NEPA process already underway as part of the construction of the MDCF already underway. A copy is available at CRNA. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 20 7/1//2011 In summary: Total Project Cost: $143,363 Request Grant Funding: $132,523 Applicant Matching Funds: $ 10,840 Identification of other funding sources: BIA Energy, ICDBG,CSBG, private Projected Development Cost of Proposed System: $449,679 (1st year) (Please see attached Project Schedule for assumptions) 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.) In summary: Total capital cost of new system $ 31,120 Development cost $ - Annual O&M cost of new system $258,636 Annual fuel cost $159,923 TOTALS (1st Year) $449,679 (Please see attached Project Detail Spreadsheet for assumptions) 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 Not applicable. There is no intention of reselling electricity or energy at this time. 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. Please see attached Cost Worksheet. It is supported by the included Project Detail Spreadsheet. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 16 of 20 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 In summary: * Potential annual fuel displacement: 125,543 gallons @ $4.50/gal = $564,944 * Anticipated annual revenue: NA * Potential additional annual incentives: NA * Potential additional annual revenue streams: NA * Discuss the non-economic public benefits to Alaskans over the lifetime of the project: It is estimated that in fuel cord harvesting, operations, administration, and delivery of product to the proposed facility to be heated via an installed HELE boiler system would require the addition of 5.5 positions at an average salary of $15,000 per year. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits  Proposed business structure(s) and concepts that may be considered. Insofar as this feasibility proposal seeks to justify the utilization of biomass in lieu of a more traditional oil-based heating system, a business structure designed for resale of energy has not been considered.  How you propose to finance the maintenance and operations for the life of the project Costs would be considered part of normal operations of the MDCF; as such, it would fall under the Joint Venture agreement the Indian Health Service is currently negotiating with Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 20 7/1//2011 CRNA to fund operations and maintenance of the new primary care center planned for the region. This would be a 30 year agreement that, upon approval of the Indian Health Service, would guarantee funding for the life of the MDCF.  Identification of operational issues that could arise. Pending the outcome of the feasibility study, private use fees, environmental regulation and air quality regulations could change. If proper engineering methodology is followed, a self - sustained, sustainable system should be fairly guaranteed. Hopefully within the scope of this project, a viability analysis looking at regionalizing or creating a larger biomass facility, perhaps as a part of the MDCF, could be studied.  A description of operational costs including on-going support for any back-up or existing systems that may be required to continue operation The annual O&M costs have been stated above; explication or detail follows: Total capital cost of new system $ 31,120 (4 New Horizon Cast Iron42 wood fired boiler @ $3900, + 200% shipping w/ 144kWh capacity) This compares comparably to similar capacity oil fired boilers Annual O&M Costs $258,636 Based on OM&R costs from Tok Biomass Feasibility study Maintenance per s.f of Tok Fire station @ $8.62/s.f/year Annual Fuel Cost $159,923 Based on rate of $120/green ton, taken from Hanson study, based on estimated energy needs of 30,000 s.f. MDCF @ 17.3 billion btu/year  Commitment to reporting the savings and benefits As this directly impacts energy substitution in our region positively, and has likely employment and business multiplier effects, this would be reported to funders and stakeholders on a regular basis. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 18 of 20 7/1//2011 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 MDCF (primary care and administrative offices) has been a major endeavor by the CRNA to meet local primary health, behavioral health and dental needs of our region for a better part of a decade. Funding has been obtained for construction from HUD, as well as loan guarantees from the USDA. Private sources of capital are also being sought. To date, over $10 million in grants, loans or loan commitments are in place to build this structure. As mentioned the Indian Health Service is prepared to provide long term contract to meet this facilities’ O&M requirements for 30 years. We can proceed as soon as award is made. An RFP or scope of work is ready now, and we’d be happy to share it with the AEA or other interested party. CRNA is one of the largest em ployers in the region, and has a well-established record for grant and regulatory compliance and project success. 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. There would be little opposition; earlier disputes having to do with health access and related issues have been addressed. There may be some that may be concerned about air quality, but this can be addressed through proper technology use and early communication. Please see attached letters of support. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 19 of 20 7/1//2011 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 20 of 20 7/1//2011 - 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 Paula Vrana Signature Title CEO Date 8/24/11 i Summary of Information and Resources Related to Energy Use in Hospitals – Version 1.0, Berkeley National Laboratory, p.13. ii FOREST RESOURCES ON STATE FOREST LANDS IN THE COPPER RIVER BASIN : A PRELIMINARY ESTIMATE, Hanson, 2010, p.34