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HomeMy WebLinkAboutWood Heating Feasibility in Publice Blds/46113D ALASKA Renewable Energy Fund Round 5 GEE) ENERGY AUTHORITY Grant Application 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 GrantApp5.doc Application form in MS Word that includes an outline of Form 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 Costworksheet Summary of Cost information that should be addressed by Worksheet 5.doc applicants in preparing their application. Grant Budget GrantBudget5. A detailed grant budget that includes a breakdown of costs by Form doc milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetln Instructions for completing the above grant budget form. Form Instructions structions5.doc Authorized Authorized Form indicating who is authorized to sign the grant, finance Signers Form signers reports and progress reports and provides grantee information. form5.doc • 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. AEA 12-001 Application Page 1 of 18 7/1/2011 ALA ©SKA Renewable Energy Fund Grant Application Round 5 SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Interior Regional Housing Authority Type of Entity: housing authority Fiscal Year End Tax ID 92-0049402 Tax Status: For -profit or x non-profit check one Mailing Address Physical Address Same 828 27`h Avenue, Fairbanks, AK 99701 Telephone Fax Email 907-452-8315 907-456-8941 1 kcarlo irha.or 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Kim Carlo Energy and Weatherization Administrator Mailing Address 828 27`h Avenue, Fairbanks, AK 99701 Telephone Fax Email 907-452-8315 907-456-8941 kcarlo6Dirha.2M 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 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. AEA12-001 Grant Application Page 2 of 18 7/1//2011 ''; Renewable Energy Fund ALASKA C;ENERGYAUTHORITY Grant Application Round 5 SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title — (Provide a 4 to 5 word title for your project) Wood Heating Feasibility in Public Facilities, Interior Region 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. This proposal calls for feasibility assessments of wood -fired heating systems (e.g., Garn boilers), including forest inventories and wood harvest assessments, in seven communities in Interior Alaska: Northway, Tanacross, Nenana, Circle, Eagle, Stevens Village, and Minto. The feasibility assessments and forest inventories will require the participation of tribal and municipal governments, and will require access to public facilities in these communities, but no on -site construction or physical impact of any kind will take place. The community benefit will consist of a planning document that allows each community to make sound decisions regarding future energy uses and projects. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting x Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The seven communities named in this proposal—Northway, Tanacross, Nenana, Circle, Eagle, Stevens Village, and Minto—have all participated in energy planning meetings with Interior Regional Housing Authority (the applicant), Tanana Chiefs Conference, Alaska Native Tribal Health Consortium, Denali Commission, Alaska Energy Authority, and others, and have identified wood heating in public facilities as a key opportunity to displace fuel oil, reduce energy costs, utilize locally available renewable resources, and create local employment. This AEA12-001 Grant Application Page 3 of 18 7/1 //2011 GIKDALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Round 5 proposal calls for feasibility assessments that include study of public facilities where wood heating might be applicable, pre -engineering analysis of the size and type of boilers that would be required (including the "Garn-in-a-box" option), estimated fuel displacement and cost savings, capital cost and payback period, and forest inventory and wood harvest plan. The applicant proposes a three -pronged approach: (1) subcontract with a qualified biomass energy specialist (e.g., Thomas Deerfield, who is presently evaluating wood heating feasibility in eight Interior villages with a RE Fund -Round 4 grant) to conduct 1- to 2-day site visits in each community and prepare feasibility assessments for each, (2) subcontract with Alaska Native Tribal Health Consortium for staff engineer with expertise in water and sewer systems to conduct site inspection and prepare feasibility assessment for those systems, and (3) subcontract with Will Putman, head forester for Tanana Chiefs Conference (TCC) to conduct forest inventory and wood harvest planning. Following the completion of these reports, project staff Kim Carlo of Interior Regional Housing Authority (IRHA) will continue to communicate with residents of the communities and facilitate their internal planning processes to determine whether each community wants to move forward with final design and construction phases of the respective wood -heating projects, pending available funding. It bears mentioning this proposal is identical in scope to one submitted by IRHA under Round 4 of the RE Fund for wood heating feasibility work in eight other Interior communities. This represents a deliberate approach whereby the applicant is proceeding in stages with conducting feasibility work prior to conceptual design, final design, and construction. It is anticipated that the phased approach will allow IRHA to conduct full assessments for most communities in the region. AEA12-001 Grant Application Page 4 of 18 7/1//2011 ALASKA Renewable Energy Fund ,a� ENERGY AUTHORITY Grant Application Round 5 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.) Installation of a wood -fired heating system in a public building or cluster of public buildings would displace all or a significant portion of fuel oil that is currently being used to heat those buildings. For example, a feasibility assessment report for Huslia that was completed in 2008 identifies a cluster of five adjacent buildings and finds that installation of a wood -heating system could potentially displace 9,750 gallons of fuel oil ($58,500 total cost @ $6/gal) with 114 cords of wood ($39,900 total cost @ $350/cord), for an annual cost savings of $18,600 (debt service and non -fuel operation/maintenance costs notwithstanding). The same report finds heating the local school with wood could result in an annual fuel cost savings of $32,350, and that a separate cluster of three buildings has a potential cost savings of $46,550 if heated with wood. This proposal calls for similar assessments for public buildings in eight communities. It is anticipated the reports will show comparable potential cost savings. The 2010 Alaska Energy Pathway identifies "mid-term annual heat savings" for the study communities as follows: Northway (Village): $35,800 Tanacross: $79,100 Nenana: no data Circle: $21,000 Eagle: $76,800 Stevens Village: $19,600 Minto: no data It is expected the feasibility assessments will refine these numbers and provide a sound economic analysis. It must be noted, however, this proposal calls only for feasibility assessments and thus all economic benefits are projections and contingent on final design and construction phases that are not part of this proposal. IRHA and TCC intend to work with the eight communities to seek future funding for final design and construction in those communities with the best prospects for a successful project. In addition, the communities stand to benefit from the projects in that wood is a locally available resource, and local woodcutters can be paid to harvest and process the wood. Currently these communities purchase heating fuel from an outside vendor, which results in money leaving the village (also known as "economic leakage"). A wood heating system would provide job opportunities and keep money circulating within the community. Increased local demand for biomass fuels would also improve safeguards against wildfires and enhance wildlife habitat, especially for moose. A final benefit is that the feasibility reports will help communities plan for their energy needs by providing information about energy options, a process that is expected to increase local involvement in energy planning. AEA12-001 Grant Application Page 5 of 18 7/1//2011 /&�ALASKAH Renewable Energy Fund Grant Application Round 5 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 requested funding amount is $323,696, which includes salary support for (1) IRHA project manager Kimberly Carlo, (2) TCC forester Will Putman, (3) ANTHC engineer, and (4) biomass energy specialist contractor. The funding request also covers travel for personnel (3) and (4) to the seven communities in the study. No supplies or equipment are included in the proposal. As mentioned previously, this proposal is part of a multi -phase approach whereby IRHA is evaluating the potential for wood heating in several communities in the region. Eight communities are presently being studied with an AEA Round 4 grant, and the applicant expects the study of these additional seven communities will be helped by the institutional knowledge gained in the Round 4 studies. It should be noted that IRHA has selected Will Putman to do the forest inventory work as he is well qualified and has extensive experience in the region. IRHA has not selected a contractor for the feasibility assessments at this time. That individual will be selected following the grant award process as per IRHA's procurement regulations, but for the purpose of calculating travel/salary in this proposal the applicant has based those costs on previously obtained quotes from Dan Parrent and Thomas Deerfield. The inclusion of an ANTHC engineer on the project adds to project costs, but will result in a feasibility assessment for water -sewer systems enabling the project communities to make more informed decisions regarding cost effectiveness of wood heating systems. 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. $ 323,696 2.7.2 Other Funds to be provided (Project match) $ -- 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 323,696 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 n/a—feasibility study only including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) n/a—feasibility study only 2.7.6 Other Public Benefit (If you can calculate the benefit in See Section 2.5 terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) AEA12-001 Grant Application Page 6 of 18 7/1//2011 /4401LED-) ALASM Renewable Energy Fund dMED ENERGY AUTHORITY Grant Application Round 5 SECTION 3 — PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The project will be managed by Kimberly Carlo, Energy and Weatherization Administrator for IRHA. Contact information and references are included in the attached resumes. 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.) The project timeline is September 1, 2012, to August 31, 2013. Task 1: Grant administration. IRHA project lead Kim Carlo will set up and administer the grant. Duties include facilitating communication between Alaska Energy Authority, IRHA, ANTHC, and contractor for the contract, award, and sub -awards. Carlo will track project objectives, conduct performance evaluation, and ensure reporting requirements are fulfilled and completed on time. This task will place for the duration of the project (September 1, 2012 — August 31, 2013). Task 2: Preparatory work for community wood -heating feasibility studies. Carlo will contact the communities to schedule site visits by project staff and will provide personnel with background information in advance of the site visits (e.g., list of contacts and public buildings to be evaluated). IRHA will arrange travel for personnel. This task will begin with the start of the project in September 2012 and is expected to be completed by the time site visits commence that fall. Task 3: Feasibility Assessments and Forest Inventories. Personnel will travel to communities for site visits, research, data collection, and communication with local decision -makers. Written reports for each community will be prepared following the visits. This task will begin in fall 2012 and is expected to be completed by spring 2013. Task 4: Post -assessment community follow-up. Carlo will communicate with communities during and after the assessments to provide information and gather feedback, deliver copies of the completed assessment reports, present findings at a number of different venues, such as regular tribal council meetings, and will serve as primary point -of -contact for the duration of the project. This task will commence upon completion of the site visits and will last for the duration of the project. Task 5: Final reporting. Carlo will oversee final reporting for the grant. Duties include budget review, preparation of final report, and grant close-out. This task will be completed by August 31, 2013. AEA12-001 Grant Application Page 7 of 18 7/1//2011 /&�ALASKA Renewable Energy Fund MED ENERGY AUTHORITY Grant Application Round 5 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.) See Section 3.2 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. Project personnel include Will Putman, head forester for TCC, who has prepared forest inventories for other communities in the Interior including Fort Yukon and McGrath as part of AEA -funded biomass projects in those communities. IRHA intends to solicit bids from biomass energy contractors for the feasibility assessments. (Thomas Deerfield is conducting the assessments for the Round 4 project.) 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Personnel from IRHA are in daily communication with residents of Interior communities, including the seven named in this proposal. The various project tasks (see Section 3.2) require regular communication with city officials, tribal officials, and other residents of the affected communities. In addition, IRHA holds frequent board meetings, community meetings, and other gatherings at which education, outreach, and project communication will take place. The project team has already relied on extensive communication with Devany Plentovich of AEA in preparing this application, and expects to maintain regular contact for the duration of the project. The project team is also willing to participate in the AEA Wood Energy Workgroup. 3.6 Project Risk Discuss potential problems and how you would address them. The project team believes the proposal is straight -forward and its scope of work narrowly defined so that the potential for problems is minimal. There are no supplies or equipment involved in the proposal, and no mechanical systems to install, operate, and maintain. The proposal calls for personnel to make site visits in seven communities, conduct research, collect data, communicate with residents, and prepare written feasibility reports. The risk is minimal. All project communities are aware the feasibility study called for in this proposal does not require a commitment on their part to install such a system or allocate funds at any future date. In short, the project team believes any potential problem can be handled through adequate communication and respect for local authority. AEA12-001 Grant Application Page 8 of 18 7/1//2011 'ALASKA Renewable Energy Fund �ENERGYAUTHORITY Grant Application Round 5 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. This proposal calls for feasibility assessments of wood -fired heating systems (e.g., Garn boilers), including forest inventories and wood harvest assessments, in seven communities in Interior Alaska: Northway, Tanacross, Nenana, Circle, Eagle, Stevens Village, and Minto. The project team expects the completed feasibility studies to serve as a Phase 1 foundation for future funding requests for final design and construction in those communities with the greatest potential for a successful wood -heating project. Should the feasibility studies lead to the final design and construction phase, the proposed energy resource is biomass (most likely cordwood). Experience in other communities with Gam boilers has shown that wood consumption averages 30-200 cords depending on number and size of facilities. The amount of wood required to support a wood -heating system of this type is relatively small compared to the widespread availability of driftwood, trees on nearby tribal lands, state forests, Bureau of Land Management forests, and so on. The communities recognize the need for a forest management and wood harvest plan. In addition, any firebreaks or development might provide several years' worth of wood for a biomass project of this nature. The project team does not believe resource availability will be a problem for any community named in this proposal. The forest inventory workplan is as follows: Of the communities named in this proposal, TCC presently has forest inventory information on village corporation lands in five of them: Tanacross, Northway, Nenana, Circle, and Minto. For those communities, an initial phase of a resource assessment involves leveraging that information as much as possible, manipulating information in a database and GIS to estimate biomass stocking, availability, and sustainability on corporation lands in the vicinity of each community. An additional, substantially more labor- and cost -intensive phase will be conducted for two villages (TBD), utilizing newer remotely -sensed data (satellite imagery) and considering multiple ownerships, etc. For the other communities for which TCC lacks any existing information, an initial phase would attempt to leverage existing land cover information such as LANDFIRE or the National Land Cover Dataset (NLCD), and combine with biomass stocking estimates from similar areas elsewhere to assess the biomass resources. Similar to the villages with existing inventory information, an additional phase utilizing newer remotely -sensed data to classify land cover could be considered. AEA12-001 Grant Application Page 9 of 18 7/1//2011 ,ALASM Renewable Energy Fund �ENERGY AUTHORITY Grant Application Round 5 The applicant proposes subcontracting with TCC (Will Putman) for forest inventory work consisting of data processing/analysis (40 hours per village) and report preparation (40 hours per village). In addition, the scope of work includes satellite image acquisition and processing for two communities to be determined at a later date. Those communities will be selected on the basis of readiness for final design/construction of a wood heating system where more detailed wood harvest planning is required. Phase 1 (preliminary assessment using existing inventory data and/or available land cover data), per village: Data processing/analysis (40 hours) Report compilation (40 hours) Phase 2 (extended assessment through current image acquisition and processing), per village: Satellite image acquisition and processing Land cover classification (120 hours) Compilation of land status, other data layers (40 hours) Construction of model, analysis, report compilation (80 hours) 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 public buildings to be evaluated for possible wood -heating are currently heated with fuel oil and a boiler that delivers either forced -air or hot-water heating. Some buildings (e.g., tribal halls) may also have conventional wood stoves and in rare cases electric heaters are used. Of the seven communities proposed for study, all have co -located public buildings that currently operate as stand-alone units from a space heating perspective. One of the challenges in planning for alternative sources of heat is that the information about the existing systems (e.g., "number, size, age, efficiency, and type of generation") is largely anecdotal and not collected by a single entity. The feasibility assessments called for in this proposal will collect comprehensive energy system data for a suite of public buildings, which will enable comprehensive energy planning that involves each separate entity. ANTHC personnel are being included in this proposal to evaluate the potential for wood heating in water and sewer systems. 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. The existing energy resource for space heating in these communities is fuel oil (typically #1). Should the feasibility reports lead to project construction in any of these communities, it is anticipated that resource would be at least partially displaced by wood. The impacts would be positive: reduce heating costs, create jobs, keep money from leaving the community, wildfire protection, wildlife habitat enhancement, and greater local involvement in energy issues. AEA12-001 Grant Application Page 10 of 18 7/1//2011 16OVD, ALASKA Renewable Energy Fund © ENERGY AUTHORITY Grant Application Round 5 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Converting the heating systems from fuel oil to wood is expected to lower energy costs. In cases where space heating is provided by recovered waste heat from the local power plant, the feasibility assessment would include data on integrating those systems. It bears mentioning again that this proposal calls only for feasibility assessments. It will not result in construction and installation of a new energy system, thus actual impacts are only projections. 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 The proposal calls for study of high efficiency low emission (HELE) biomass boilers and their potential application in seven Interior Alaska communities. The Alaska Wood Energy Development Task Group has identified a number of boiler manufacturers (e.g., Garn, Tarm, Greenwood) with proven products that are expected to meet the pending EPA emissions regulations. A typical wood -fired heating system consists of boiler(s), boiler building, wood storage building, and plumbing and connections. Heat distribution is typically achieved via hot water delivery. It is not possible to determine exact system characteristics in advance of the feasibility reports called for in this proposal, but for the purposes of evaluating the proposal we offer the example of Huslia, as determined in a 2008 feasibility report prepared by Dan Parrent of JEDC. That report finds that for the Jimmy Huntington School in Huslia, the required boiler capacity is 559,629 Btu/hr, which can be met with two Garn WHS 3200 units. The estimated building and equipment costs (estimates provided in the original report are not price quotes but are for discussion purposes only) are: Wood storage building: ..................... $79,600 (3,980 sq. ft. @ $20/sq. ft.) Boiler building: .............................. $60,000 (400 sq. ft. @ $150/sq. ft.) Boilers (base price): ......................... $65,800 (Dectra Corp.) Boilers (shipping and bush delivery):....$15,000 (estimated) Plumbing/connections: ..................... $40,000 (estimated) Installation: ................................... $25,000 (estimated) Contingency(25%):.........................$71,350 Total: .......................................... $356,750 AEA12-001 Grant Application Page 11 of 18 7/1//2011 /4&:-_�'ALASKA Renewable Energy Fund MMED ENERGY AUTHORITY Grant Application Round 5 The above proposed system must also take into account labor costs and non -fuel OM&R costs (estimated at $9,227 and $12,646, respectively). Converting to such a system requires higher upfront costs and greater OM&R costs than those for a traditional fuel -based system, but for a viable project the payback time may be relatively short. The project team also intends to consider the "Garr -in -a -box" concept being developed by AEA for the community of Elim. 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. This proposal calls only for feasibility assessments of wood -fired heating systems that may or may not be constructed at some future date. There are no land ownership issues at this time. Each feasibility assessment will evaluate land ownership, however, as part of the assessment of wood heating applications. Should this project lead to a design and construction phase, the site -selection for the wood -fired boilers will require negotiation with land owners. Since the proposal is looking at public buildings, the land owner in most cases will be a city government or tribal council. This proposal has the support of the communities and negotiating land issues with regard to placement of the boilers is not expected to pose problems. 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 N/A 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 This proposal will have no negative impact on wildlife, habitat, wetlands, archaeological and historical resources, land development, telecommunications, or aviation operations. The proposal calls only for feasibility assessments, and no impacts are expected. The only foreseeable impact would occur in a subsequent design and construction phase, and would be aesthetic in that the infrastructure would be visible to residents. AEA12-001 Grant Application Page 12 of 18 7/1//2011 /ZU'D ALASM Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Round 5 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 This proposal does not call for construction of a new energy system. For this reason, the question of system costs and projected revenues is largely moot. Nevertheless, the applicant refers the Selection Committee to cost estimates listed in Section 4.3.1 only for discussion and evaluation purposes. These estimates do not represent actual costs. Heating system comprised of 2 Garn WHS 3200 units (proposed system for Huslia school) Buildings and Equipment: $356,750 Labor: $9,227 Non -fuel OM&R: $12,646 Fuel oil displaced: 17,000 gal Potential cost savings from displaced fuel: $102,000 Equivalent cords of wood: 199 cords Cost of wood @ $350/cord: $69,650 Potential savings (fuel cost - wood cost): $32,350 Simple payback period: 11.03 years 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.) See Section 4.4.1 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 AEA12-001 Grant Application Page 13 of 18 7/1//2011 /44 'ME ALASKA Renewable Energy Fund 4MI--) ENERGY AUTHORITY Grant Application Round 5 • Proposed rate of return from rant -funded project Should the feasibility assessments lead to final design, construction, and operation of a wood - fired heating system at some future date, any space heating purchase/sale agreements would have to be negotiated between the owner/operator of the system and the owners of the buildings to which the heat is supplied. Since this proposal calls only for feasibility studies, it is premature to comment on power purchase/sale 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. See attached. 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 Installation of a wood -fired heating system in a public building or cluster of public buildings would displace all or a significant portion of fuel oil that is currently being used to heat those buildings. For example, a feasibility report for Huslia that was completed in 2008 identifies a cluster of five adjacent buildings and finds that installation of a wood -heating system could potentially displace 9,750 gallons of fuel ($58,500 total cost @ $6/gal) with 114 cords of wood ($39,900 total cost @ $350/cord), for an annual cost savings of $18,600 (debt service and non - fuel operation/maintenance costs notwithstanding). The same report finds heating the local school with wood could result in an annual savings of $32,350, and that a separate cluster of three buildings has a potential cost savings of $46,550 if heated with wood. This proposal calls for similar assessments for public buildings in eight rural communities. It is expected the reports will show comparable potential cost savings. The 2010 Alaska Energy Pathway identifies "mid-term annual heat savings" for the study communities as follows: Northway (Village): $35,800 Tanacross: $79,100 Nenana: no data Circle: $21,000 Eagle: $76,800 Stevens Village: $19,600 AEA12-001 Grant Application Page 14 of 18 7/1//2011 ALASKA Renewable Energy Fund /GINDENERGY AUTHORITY Grant Application Round 5 Minto: no data It is expected the feasibility assessments will refine these numbers and provide a sound economic analysis. It must be noted, however, this proposal calls only for feasibility assessments and thus all economic benefits are projections and contingent on final design and construction phases that are not part of this proposal. IRHA and TCC intend to work with the communities to seek future funding for final design and construction in those communities with the best prospects for a successful project. The economic potential of a wood -fired district heating system typically improves with as heating demand or "load" increases; heating multiple buildings in close proximity to one another by a central heat plant (i.e., district heating system) would likely return better economic metrics than several small individual stand-alone (i.e., "distributed") heat plants. The communities stand to benefit from the projects in that wood is a locally available resource, and local woodcutters can be paid to harvest the wood. Currently these communities purchase heating fuel from an outside vendor, which results in money leaving the village. A wood heating system would provide job opportunities and keep money circulating within the community. In addition, increased local demand for biomass fuels will provide opportunities to improve local safeguards against wildfires, and enhanced wildlife habitat. The use of wood heating in water -sewer systems will continue the public health benefits of that service. A final benefit is that the feasibility assessments will help communities plan for their energy needs by providing information about energy options, a process that is expected to increase local involvement in energy planning. 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 This proposal calls only for feasibility studies assessments of wood -fired heating systems and locally available biomass resources. Inasmuch as this proposal does not call for actual construction of biomass heating systems, business structure, financial considerations, maintenance and operational issues are not included in any great detail. However, some of these issues (OM&R and financial metrics, for example) will be included in the reports. The issues of sustainability (as regards forest [biomass] resources) will be addressed in that section of the report and are not applicable at this time. AEA12-001 Grant Application Page 15 of 18 7/1//2011 /4ZE-S ALASKA Renewable Energy Fund 4NED ENERGY AUTHORITY Grant Application Round 5 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 seven communities included in this proposal have all participated in extensive planning processes that led them to consider wood heating in public buildings. IRHA and TCC have led energy planning sessions in the communities (with funding from AEA and U.S. DOE). IRHA and TCC also have extensive experience in implementing grants and contracts in the region. Most recently, the applicants have implemented federal Energy Efficiency and Conservation Block Grants, a process that demonstrates readiness and organizational capacity to implement the award. The project team is prepared to begin work on the award immediately once the award is made. The applicant received a grant from AEA under Round 4 of the RE Fund ($154, 477) for identical work in eight other Interior communities. That project is currently underway and the applicant expects to build on the gained experience for this Round 5 proposal. SECTION 8— LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The applicant has directly communicated with tribal councils, city governments, school officials, and other residents. The seven communities named in this proposal are committed to this feasibility phase. The communities understand that participating in the feasibility phase in no way commits them to any subsequent project phase, nor does it commit them to expenditure of funds for any future project phase. Letters of support from the respective tribal councils are attached. SECTION 9 — GRANT BUDGET Tel 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 Personnel. Funding to support salary and benefits: 150 hours for Kim Carlo, IRHA Energy and Weatherization Administrator; 1,120 hours for Will Putman, TCC Head Forester. Total cost to Project: $126,227 Travel. Funding for travel for biomass energy engineer and ANTHC engineer to seven communities. Total cost to Project: $19,485 AEA12-001 Grant Application Page 16 of 18 7/1//2011 /4411LED,ALASKA Renewable Energy Fund Grant Application Round 5 Contractual Services. Funding for contract with biomass energy engineer and contract with ANTHC engineer. Funding for satellite image acquisition and processing (forest inventory). Total cost to Project: $177, 984 Total project funding request: $323,696 AEA12-001 Grant Application Page 17 of 18 7/1//2011 /441NEEDALASHKA Renewable Energy Fund Grant Application Round 5 SECTION 10 — ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Cost Worksheet per application form Section 4.4.4. C. Grant Budget Form per application form Section 9. D. Letters demonstrating local support per application form Section 8. E. An electronic version of the entire application on CD per RFA Section 1.7. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. H. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name r Signature Title C-7_7 6) Date Ile -�5 //,/ AEA12-001 Grant Application Page 18 of 18 7/1//2011 /11--3) ALASKA Renewable Energy Fund Round 5 GEED ENERGY AUTHORITY Project Cost/Benefit Worksheet Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability This proposal includes a forest inventory component that will establish the availability of the biomass resource (cordwood). Previous experience with Garn boilers has demonstrated the wood consumption can easily be met by forest resources in the communities in question. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other Primarily #1 diesel -fired boilers; recovered heat, wood stoves also in use. ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor To be established as part of feasibility assessments. ii. Annual O&M cost for non -labor Same. c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] n/a to all ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) Diesel [gal or MMBtu] Variable across communities/facilities. To be calculated as part of feasibility assessments. ii. Electricity [kWh] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11 /dwFD ALASKA Renewable Energy Fund Round 5 ® ENERGY AUTHORITY Project Cost/Benefit Worksheet iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] Variable. vi. Other a) Proposed renewable capacity Biomass; MMBtu/hr varies but can be met with available (Wind, Hydro, Biomass, other) wood resources. [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] Variable. iv. Other a) Total capital cost of new system n/a b) Development cost n/a c) Annual O&M cost of new system Variable, to be calculated as part of feasibility assessments. d) Annual fuel cost Cordwood typically runs - $250 per cord 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat Variable. iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits 6. 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N Cl O ca Q O a) E U w M "= U) � a) U) O O U O "- L a) c 7 i U O U U � c6 O 2 •U O _0a- f6 _ U) � (6 a) 0- inca m 0 m E Q U m 0Lr— U O LL � O 1- N C15 14 U') CO I-� 00 W _0 +� c -° a) L c m U) ca m E C� -a O i+ c6 c C y �O c _0 co CD M(�0 ;� � c O) U V1 U M E p p .� N _0 cm O p a) ca O L Q a) O O a) E cu C cD O a) U) U •� 0 0 •� O Q N E � ca 0 0 E 0 CD E d a) O �, -O " U _ >, a p c N M c> (6 E c a o � -j d U cca 0 ccu cn i i N c'7 In CO f� fg, �-•1 a E rviols%C11RCLE TRIBAL COUNCIL = August 15, 2Q11 Alaska. Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK. 99506 RE: Letter of Support for Renewable Energy Fund Proposal Dear Renewable Energy Fund Selection Committee; The (Tribe), Alaska herby supports the proposal for the wood Heating feasibility studies urtder the Renewable Energy Fund, We have Identified a cluster of buildings, that we are Interested In potential wood heating; (buildings). Rural communities pay some of the highest electric and heating costs In the state and we are hopeful that this feasibility report will be a useful toot In energy planning, especially since wood is a readily available resource throughout'the Interior. The reconnaissance and feasibility study called for In this proposal would assist the community in planning for the most efflclent use of energy resources. We support Interior Regional Housing Authority to apply for funding to conduct a wood heating feasibility study. Thank you for considering our proposal. Since r iy, 4 rnnti% -27o2 oaoo F:av- fOrl71 77A-9A9R Stevens Village IRA Council PO Box 16 Stevens Village, AK 99774 907 478-7228 907478-7229 fax August 15, 2011 Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK 99506 RE: Letter of Support for IRHA Renewable Energy Fund Proposal Dear Renewable Energy Fund Selection Committee: The Stevens Village IRA Council supports the proposal for the wood heating feasibility studies for Interior Villages under the Renewable Energy Fund. We have identified numerous facilities in our community that we believe have the potential for wood heating in order to reduce energy consumption and costs. We pay some of the highest electric and heating costs in the state; we are hopeful that this feasibility study will be a useful tool in energy planning that will lead to a successful, sustainable construction project. Wood is a readily available resource in our region. The reconnaissance and feasibility study called for in this proposal will assist our community in planning and implementing the most efficient use of energy resources. We support Interior Regional Housing Authority's application for funding to conduct a wood heating feasibility study. Thank you for considering our proposal. Sincerely, Randy Mayo Chief 19-Aug-2011 Il Xam From- T-940 P.002/002 F-142 AuguSC 19, 2011 Alaska Energy Authority 813 W. Northern Lights BI Anchorage, AK 99506 RF= Letter of Support for Dear Renewable Energy wable Energy Fund Proposal d Selection Committee: The Nenana Native Council, herby supports the proposal for the wood heating feasibility studies under the Renewable Energy Fu id. We have identified a cluster of buildings, that we are interested in pnteniial wood heating; tie Mitch DernientieffTribal Hall. Rural communities pays me of the highest electric and heating costs in the state and we are hopeful that this feasibility report will be a useful tool in energy planning, especially since wood is a readily availai�lu resource throughout the interior. The reconnaissance and feasibility study called for in this proposal would assist the community in planning for the most efficient use of energy resources. We support interior Regi nal Housing Authority to apply for funding to conduct a wood heating feasibility study. Tfwnk yntj for considering our proposal Sim k,rr ly, Rohm Campbell Tril?�11 Administrator 08/15/2011 11:45 9078834497 TANACROSS VILLAGE PAGE 02/02 S/�5/11 Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK. 99506 RE: Letter of Support for Renewable Energy Fund Proposal Dear Renewable Energy Fund Selection Committee: The Tanacross Village Council, herby supports the proposal for the wood heating feasibility studies under the Renewable Energy Fund. We have identified a cluster of buildings, that we are interested in Potential wood heating; Community hall, Fire hall/ Garage/ Workout room, Multi Use Facility, Lift Station Rural communities pay some of the highest electric and heating costs in the state and we are hopeful that this feasibility report will be a useful tool in energy planning, especially since wood is a readily available resource throughout the interior. The reconnaissance and feasibility study called for in this Proposal would assist the community in planning for the most efficient use of energy resources. We support Interior Regional Housing Authority to apply for funding to conduct a wood heating feasibility study. Thank you for considering our proposal. Sincerely, Eagle Village Council P.O. Box I9 Eagle, AK 99738 (907) 547-228I Office (907) 547-23I8 Fax August 18, 2011 eagle.v&ge@yahoo.com Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK. 99506 RE: Letter of Support for Renewable Energy Fund Proposal Dear Renewable Energy Fund Selection Committee: The Native Village of Eagle, Alaska herby supports the proposal for the wood heating feasibility studies under the Renewable Energy Fund. We have identified a cluster of buildings, that we are interested in. potential wood heating; Tribal Office, Village Public Safety Officer office, Community Hall, and Clinic. Rural communities pay some of the highest electric and heating costs in the state and we are hopeful that this feasibility report will be a useful tool in energy planning, especially since wood is a readily available resource throughout the interior. The reconnaissance and feasibility study called for in this proposal would assist the community in planning for the most efficient use of energy resources. We support Interior Regional Housing Authority to apply for funding to conduct a wood heating feasibility study. Thank you for considering our proposal. Sincerely, Joyce Roberts 1 s` Chief Eagle Village Council Grant Documents Authorized Signers Please clearly print or type all sections of this form. Community/Grantee Name: Interior Regional Housing Authoriy Regular Election is held: Date:8/25/2011 Authorized Grant Signer(s): Printed Name Title Term Signature Irene Catalone Chief Executive Officer 4 I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Irene Catalone Chief Executive Officer Grantee Contact Information: Mailing Address: 82827 th Fairbanks, AK 99701 Phone Number: 907 452-8315 Fax Number: 907 456-8941 E-mail Address: irenec@irha.org Fiscal Year End: 12/31 Entity Type (For -profit or non-profit status): Tribally designated housing entity Federal Tax ID #: 92-0049402 Please submit an updated form whenever there is a change to the above information. Please return the original completed form to: Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK 99503 ENERGY AUTHORITY Attn: Butch White, Grants Administrator http://www.aidea.org/aea/Rene wableEnergyFund/ Round_V_July_2011/GrantDocumentsAuthorizedSigners5.doc 7.a'i7 INTERIOR REGIONAL HOUSING AUTHORITY RESOLUTION 2011-13 A RESOLUTION AUTHORIZING IRHA TO SEEK AND APPLY FOR ALASKA ENERGY AUTHORITY RENEWABLE ENERGY FUND, ROUND 5 FUNDING FOR FEASIBILITY ASSESSMENTS FOR WOOD HEATING IN INTERIOR ALASKA COMMUNITIES WHEREAS: The Interior Regional Housing Authority provides housing and other services to Interior villages and high energy costs in the Interior are causing financial hardships in the villages of our region. WHEREAS: Seeking a lower cost renewable energy source is an important strategy to maintain sustainable communities; and the communities of Northway, Nenana, Circle, Stevens village, Beaver, Minto and Tanacross have indicated their desire to pursue the option of biomass to replace a portion of oil used for space heating, and biomass has been identified by the Alaska Energy Authority as a viable strategy to reduce energy consumption and energy costs in Interior villages. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners authorizes Irene Catalone, Chief Executive Officer of IRHA, as the signatory of the application and designates her with the authority to commit IRHA to the obligations under the grant. BE IT FURTHER RESOLVED that Irene Catalone, CEO, will act as point of contact for IRHA for purposes of this grant. The Board of Commissioners certifies that IRHA is in compliance with applicable federal, state, and local laws including existing credit and tax obligations. PASSED ON THIS 16th DAY OF August, 2011. Teisha Simmons, Chairperson Pat McCarty, Secretary/Treasurer 828 27th Avenue * Fairbanks, Alaska 99701-6918 • Tel (907) 452-8315. 1-800-478-IRHA • Fax (907) 456-8941