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Home My WebLink AboutDesign & Construction of Wood Heating ProjectsALASKA Renewable Energy Fund Round 5 /® 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 ORITY ALASHKA 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: Tribally Designated Hous ing Entity Fiscal Year End Tax ID # 92-0049402 Tax Status: For -profit or Xnon-profit ( check one Mailing Address Physical Address 828 271h Ave, Fairbanks, AK 99701 828 27`h Avenue, Fairbanks, AK 99701 Telephone Fax Email 907 452-8315 907 456-8941 kcarlo irha.org 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Energy & Weatherization Administrator Kimberly Carlo Mailing Address 828 27`h Avenue, Fairbanks, AK 99701 Telephone Fax Email 907 452-8315 907 456-8941 kcarlo@irha.org ext 160 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 or its board of directors, executive management, or other governing authority. If the No 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 or follow procurement standards that comply with the standards set forth in the grant No agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached or grant form. (Any exceptions should be clearly noted and submitted with the No application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant or funds for the benefit of the general public. No AEA12-001 Grant Application Page 2 of 18 7/1//2011 ��' ALASKA Renewable Energy Fund ENERGY AUTHOWY 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) Type in your answer here and follow same format for rest of the application. Design and Construction of Wood Heating Projects in Interior Alaska Communities 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: IRHA is currently conducting feasibility assessments in eight communities in Interior Alaska: Hughes, Ruby, Koyukuk, Nulato, Kaltag, Nikolai, Anvik, and Holy Cross. Based on the feasibility assessments, three of the eight communities will be selected for design and construction of a wood heating system for community facilities. 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 x Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance x Design and Permitting Feasibility x Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The project will design and construct wood heating systems in three Interior Alaska communities. IRHA is currently conducting feasibility assessments including forest inventories and wood harvest assessments in eight Interior Communities. Once the assessments are complete, three out of the eight communities will be selected for design and construction of high - efficiency, low -emission biomass boiler systems. Projects will be selected based on the highest likelihood of successful project implementation. Factors considered will include the amount of fuel oil displaced, cost savings to the community, commitment by the community and facility personnel and a reliable and consistent supply of fuel. IRHA will partner with ANTHC and the individual tribes for the project. AEA12-001 Grant Application Page 3 of 18 7/1//2011 /GmME��ORITY AENELASHKA Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 18 7/1//2011 /ZEED ALASKA Renewable Energy Fund E) 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 wood -fired heating systems in community buildings or a cluster of community buildings will displace a significant amount of heating oil and replace it with a lower -cost, renewable energy source. A reduction in energy costs will benefit the overall community by decreasing the cost of services. Wood heating systems will be supplied by local wood cutters/gathers, providing for some injection of cash into the local economy. Targeted wood harvest will enhance wildlife habitat and provide protection against wildfires. The community of Tanana has installed Garn boilers in their water plant/washeteria with positive results. In the year prior to the installation of the high efficiency, low emission wood heating system, the utility spent $64,080 in fuel oil and $1750 for cordwood. Projections for the current year indicate an expenditure of $10,844 for fuel oil and $25,500 for cordwood. (Too'gha Ltd. Business Plan Update, March 2011). At a minimum, Tanana will see a reduction of 45% of energy costs using a wood —fired heating system. It is anticipated that three communities where the design and construction of such heating systems will take place will realize a similar savings in energy costs and fuel oil displacement. Communities not selected for the initial construction phase will benefit from this project as well. The design and construction and installation process of the systems will yield valuable lessons for future projects. Throughout the design phase of the project, IRHA and ANTHC will be in close communication with AEA to monitor the results of AEA's "boiler in a box" project. 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 $1,215,224.00. The request will fund three distinct wood -fired boiler projects in three different communities. Design, construction and environmental review and permitting are estimated at a total $398,484 each. Additional costs to the project (outside the funding request) are $60,000 for land (six lots at $10,000 each) that will be counted as in -kind contribution and $54,000 in project management expenses. The villages will donate the land and ANTHC will provide project management as an in -kind contribution to the project. IRHA will conduct and provide the environmental review and permitting at a cost of $20,000. The project total includes 10% for administrative and contingency. IRHA will provide 5% of the administrative cost as an in -kind donation. The three communities receiving the systems will have had feasibility and wood harvest assessments and forest inventories completed prior to the design/construction phase of the projects. The funding requests cover design, environmental review and permitting and construction only. AEA12-001 Grant Application Page 5 of 18 7/1//2011 /&E >ALASM Renewable Energy Fund Grant Application Round 5 Design/construction $1,135,453 ($378,484 x three communities) Environmental review/permitting $20,000 (for three communities) Land acquisition $60,000 ( six lots @ $10,000 each, in -kind) Project management $54,000 ( $18,000 per community, in -kind) Administrative $119,542 (10% of project cost, 50% in -kind) Project total $1,388,995 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $1,215,224.00 2.7.2 Other Funds to be provided (Project match) $173,771.00 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,388,995.00 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet $1,215,224.00 including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) $120,000.00 annually (estimate) 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.) AEA12-001 Grant Application Page 6 of 18 7/1//2011 ,QW)ALASKA Renewable Energy Fund 400DENERGY 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. Type in your answer here and follow same format for rest of the application. The project will be managed by Kimberly Carlo, Energy and Weatherization Administrator for Interior Regional Housing Authority and Carl Remley, Energy Program manager, ANTHC, DEHE. Ross Coen, Rural Energy Specialist for Tanana Chiefs Conference and UAF will advise on the project as needed. 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. Interior Regional Housing Authority (IRHA) will set-up the administrative component of the grant. This task includes facilitating and institutionalizing communications between project partners — ANTHC, the selected Tribe, IRHA and AEA. Document management systems will be set-up in order to track project objectives, budgeted versus actual expenditures and to ensure all p[procurement rules are being met. This task is ongoing throughout the project. Task 2. Design of the system will be conducted by ANTHC. This will involve geotechnical and site planning, mechanical design of hydronic modifications to existing facilities, mechanical design for heating systems, surveying and site plans for the buildings and heat lines. Electrical and controls. The plans and specification for the project will be stamped by registered professional engineers in the state of Alaska. Task3. Permitting and environmental analysis. IRHA will conduct an environmental analysis of the site of the boilers and the wood storage unit. Categories of impact that will be examined include: threatened or endangered species, habitat issues, wetlands and other protected areas, archaeological and historical resources, land development constraints, telecommunications interference, aviation considerations, air and water quality and solid and hazardous waste issues. Task 4. Procurement of major long lead components. Procurement and consolidation of all construction materials. Task 5. Mobilize, hire local crew, unload barge/planes, inventory and stage materials. Service local equipment. Task 6. Staking and layout of project; site grading, electrical service and underground piping. AEA12-001 Grant Application Page 7 of 18 7/1//2011 /WALASKA Renewable Energy Fund GOV) ENERGY AUTHORITY Grant Application Round 5 Task 7. Install 30' x 40' cordwood storage building. Task 8. Construction connections in new heating building, water treatment plant/washeteria and health clinic mechanical installations.. Task 9. Commission system Task 10. Operationa do maintenance training. Administrative management training. 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 Project Schedule 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. The project will be a partnership between IRHA, ANTHC and the three individual tribes selected for the project. Both IRHA and ANTHC have extensive experience managing and constructing projects in Interior villages. IRHA communicates and works with tribes in the region on a daily basis. That experience will be used to coordinate and communicate with the tribes and community members on the status of the project. ANTHC excels at the technical engineering design and construction. Equipment for project will be locally owned wherever possible. IRHA and ANTHC both use force account labor. With the exception of the construction manger, all other labor will be employed locally. IRHA and ANTHC have procurement policies and procedures that comply with existing state and federal procurement requirements. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. At a minimum, there will be monthly teleconferences between IRHA, ANTHC, the Tribe and AEA to discuss the project status. Minutes will be taken for these monthly teleconference meetings and distributed to the partners in order to maintain a written record. IRHA has accounting software that will track budgeted versus actual expenditures by line item. These documents will also become part of the written record. Since biomass is a subject of great interest to villages in the region, documenting costs by component is of special importance for future project. . 3.6 Project Risk Discuss potential problems and how you would address them. As with any construction project, there is a risk of the project coming in over budget. Ongoing, detailed tracking of expenditures by line item will help to prevent that by providing up to date information. For example, when procuring material and supplies, quotes can be compared to the budget to ensure the project comes in under budget. If costs exceed available funding, ways to reduce project costs will be examined. Administrative costs of 5% of total project are AEA12-001 Grant Application Page 8 of 18 7/1 //2011 r4aZw) ALASKA Renewable Energy Fund Grant Application Round 5 included in this proposal and can be waived if there is a need to augment direct project costs. Equipment costs are included in the construction budget; if costs are coming in higher than expected, the tribes can waive equipment rental fees if needed. There is a remote possibility that oil prices will decline to levels that make wood —fired boilers not cost effective. Long Term forecasts by the US Energy Information Agency indicate a slight increase in the short term. Even if prices decline in the short term, it is anticipated that oil prices will continue to climb in the longer term. AEA12-001 Grant Application Page 9 of 18 7/1//2011 /&�ALASKA Renewable Energy Fund 401--ENERGY AUTHORITY 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. The three construction projects in this proposal will come from feasibility assessments currently being conducted for eight Interior villages. The feasibility assessments will include community specific forest inventories and wood harvest assessments. The three construction projects will be selected from the eight feasibility assessments based on potential petroleum fuel displacement, use of forest residues for public benefit, use of local residues, sustainability of the wood supply, project implementation, operation and maintenance and community support. Heavy emphasis for project construction will be placed on the availability of the woody biomass resource. In general terms, Alaska has greater than ten times more unused biomass energy resource potential than needed to offset all its diesel fuel used for power production in rural Alaska (AEA, Alaska Energy, A First Step Toward Energy Independence). This is especially true in the heavily forested region of the Interior. Wood fuels in the interior Alaska are most likely to be in the form of cordwood, derived from standing trees. For communities located along major rivers, driftwood can be significant source of wood. The community of Tanana uses Garn boilers in its washeteria; much of the wood used for the system is harvested from the Tanana and Yukon rivers. 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. Since specific projects have not yet been selected, the basic configuration of the existing energy systems is not known. Once the feasibility assessments are complete, site specific information can be conveyed. In general, existing oil fired boilers will be augmented with wood -fired boilers to generate space heat or heat for water for water system distribution. AEA12-001 Grant Application Page 10 of 18 7/1//2011 /GZE� ALASKA Renewable Energy Fund GMED ENERGY AUTHORITY Grant Application Round 5 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 eight communities currently being assessed for biomass feasibility pay very high energy costs. The 2010 Alaska Energy Pathway identified those costs as well as "short-term annual heat savings" Anvik. Energy per capita $5471, heat per capita $1826, short-term savings $13,100 Holy Cross. Energy per capita, $4358, heat per capita $1647, short-term savings $24,100 Hughes. Energy per capita $5126, heat per capita $1876, short term savings no data Kaltag. Energy per capita $4056, heat per capita $1535, short term savings no data Nikolai. Energy per capita $3431, heat per capita $1449, short term savings $11,900 Nulato. Energy per capita 168, heat per capita $1541, short-term savings $101,000 Koyukuk. Energy per capita no data, short-term savings $15,500 Ruby. Energy per capita $5098, heat per capita $3017, short-term savings $75,800 The high efficiency, low emission wood fired boiler projects will not have an impact on existing energy infrastructure and resources. The projects will displace fuel oil and replace it with lower costs renewable woody biomass. 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 capacityfactor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods Specific design components are not known until communities and specific projects are selected from the feasibility assessments. Using the Huslia Water System and Clinic Wood Boiler project as an example, system design might consist of a Pole barn type metal building for use as an "energy building, to be erected in close proximity to the facilities utilizing the wood —fired boilers. The building will house one or more Garn cord wood hydronic boilers and storage of seasoned cord wood. Insulated heat lines will be routed to the facilities. Design for water plants AEA12-001 Grant Application Page 11 of 18 7/1//2011 ORITY ALASHKA Renewable Energy Fund Grant Application Round 5 will focus on heat required for the water storage tank, circulating water lines and building space heat. Heat for more generic facilities will be for building space heat. The units will be designed to make use of "low quality" heat, to insure maximum yield throughout the firing of the units. 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. Through the feasibility process, specific communities and specific clusters of buildings will be selected for the construction phase. Land for the wood -fired boiler and wood storage will be identified. As a practical matter, the land surrounding existing community facilities will either be owned by the tribe or the city. Part of selecting the communities for construction projects will be securing an up -front commitment for the land at no cost to the project. 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 Fire marshal review and ADEC permits are anticipated for the projects. An environmental review will be conducted by IRHA on the project sites. In the event the review indicates a need for any permits, IRHA will pursue the required permits. The environmental review process should take approximately six weeks. 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 IRHA will conduct an environmental review that includes all of the above mentioned issues. IRHA routinely conducts these reviews for its other construction and housing rehabilitation projects. 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 AEA12-001 Grant Application Page 12 of 18 7/1//2011 /44 ROV--, ALASKA Renewable Energy Fund , ENERGY AUTHORITY Grant Application Round 5 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 The requested funding amount is $1,215,224.00. The request will fund three distinct wood -fired boiler projects in three different communities. Design, construction and environmental review and permitting are estimated at a total $398,484 each. Additional costs to the project (outside the funding request) are $60,000 for land (six lots at $10,000 each) that will be counted as in -kind contribution and $54,000 in project management expenses. The villages will donate the land and ANTHC will provide project management as an in -kind contribution to the project. IRHA will conduct and provide the environmental review and permitting at a cost of $20,000. The project total includes 10% for administrative and contingency. IRHA will provide 5% of the administrative cost as an in -kind donation. The three communities receiving the systems will have had feasibility and wood harvest assessments and forest inventories completed prior to the design/construction phase of the projects. The funding requests cover design, environmental review and permitting and construction only. Design/construction* Environmental review/permitting Land acquisition Project management Administrative Project total $1,135,453 ($378,484 x three communities) $20,000 (for three communities) $60,000 ( six lots @ $10,000 each, in -kind) $54,000 ( $18,000 per community, in -kind) $119,542 (10% of project cost, 50% in -kind) $1,388,995 Specific components of the Design/construction budget are as follows: Material cost $156,374 Freight cost $38,900 General Labor Crew $41,833 Electrical labor crew $7,840 Plumbing labor crew $6,122 Equipment $43,300 Design/engineering $47, 869 Construction management $23,041 Field support $13,205 Design/construction Total $378,484 AEA12-001 Grant Application Page 13 of 18 7/1//2011 /&E� ALASKA Renewable Energy Fund 4N[__) ENERGY AUTHORITY Grant Application Round 5 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.) Specific operating and maintenance costs are not yet know. The feasibility assessments AS part of the feasibility assessments, sustainaibilty of projects i 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project N/A 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. 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 wood -fired heating systems in public facilities will displace all or a significant portion of fuel oil currently being used in communities. A feasibility assessment was conducted in 2008 for the community of Huslia. Huslia is also submitting a design and construction request based on that feasibility study. The Huslia tribal AEA12-001 Grant Application Page 14 of 18 7/1//2011 /ZMED ALASHKA Renewable Energy Fund Grant Application Round 5 project estimates displacing 21,736 gallons of fuel annually for a savings of $41,516. Those figures are based on a high estimate of $350 per cord of wood. Similar displacements of fuel oil are expected for this project. Similar savings are expected as well. The communities stand to benefit from the projects in that wood is a locally available resource; local woodcutters can be paid to harvest wood. Energy dollars are currently being spent outside the community.. The non -economic benefits of the project are to enhance wildlife habitat with selective wood harvesting and to help protect the community from wildfires by harvesting fire breaks. 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 Projects selected for design and construction will be selected based upon a number of factors — potential petroleum fuel displacement, use of forest residues for public benefit, sustainability of the wood supply, project implementation, operation and maintenance, community support and community commitment to following a wood harvest plan. By conducting the project in phases and by selecting the right criteria to evaluate projects for construction, the construction phase of the project will result in a sustainable project. Specific operational costs are not yet known, but operational sustainability will be considered when selecting the specific construction projects. AEA12-001 Grant Application Page 15 of 18 7/1//2011 /Z�ALASKA Renewable Energy Fund GE:�:) 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. IRHA is currently conducting eight feasibility assessments for biomass project in eight Interior villages. IRHA has teamed up with Tanana Chiefs Conference and the University of Alaska Fairbanks for the feasibility project. The funding source is AEA renewable Energy Fund Round 4. For this proposal, IRHA is proposing to team up with ANTHC for the design and construction of three biomass projects. IRHA and ANTHC have the staff and resources to commit to this project. In addition, both organizations routinely meet project and grant deadlines. Once the award is made, the project will begin immediately. 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. When the specific communities and projects are selected, one of the many factors considered will be community support and the community commitment to operating and maintaining the project. There will be no opposition to selected projects. All eight communities have enthusiastically supported the feasibility assessment phase of the project and are eager to proceed with the next phase. AEA12-001 Grant Application Page 16 of 18 7/1//2011 /441MV�-ORITY ALASHKA Renewable Energy Fund Grant Application Round 5 SECTION 9 — GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form — GrantBudget5.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. See attached grant budget. AEA12-001 Grant Application Page 17 of 18 711H2011 /ZEE�ORITY ALASHKA 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 Signature Title Date AEA12-001 Grant Application Page 18 of 18 7/1//2011 /GGIE 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. Prior to constructing the wood -fired boiler projects, wood harvest assessment and forest inventories will have been conducted to ensure the resource is available on a sustainable basis. 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 Not yet known ii. Rated capacity of generators/boilers/other Not yet known 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 ii. Annual O&M cost for non -labor 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] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends 91 Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] Not yet known ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] 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 /Z�, ALASKA Renewable Energy Fund Round 5 ® ENERGY AUTHORITY Project Cost/Benefit Worksheet v. Wood [cords, green tons, dry tons] Not yet known vi. Other a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [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] Not yet known, feasibility assessment being conducted iii. Wood [cords, green tons, dry tons] iv. Other a) Total capital cost of new system $1,135,453 b) Development cost c) Annual O&M cost of new system d) Annual fuel cost ) 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale 7. 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O �o O Sll _0 O CD N N O tll 00 1I O Cn W N m 5- v 0) a Sll 'il Q Cn v:3 a o a 3' m sll m v cn 3' CD CD cn °. o cD O O CD v O 3 0' � CD' to c� , r O cn � • O c ca CD CD (n CD O cn < -OO O a(D a cn � O O 3n 0) 0CD 0 O_ Q �G O O — a-O v CD Sll =+ O = (Q FT3 CD 0 cn t� 3 CDQ Q CCDD a o0 v iv .� � to :3 Q O cn� (D (L] v cn 70 CQ O rt Q 3 O O O W v C� CJl W N 1 O "a O� 3 << cn CD 0 (D n S O :30 O_ O 0 0 O CD O Q O O O CAD O Ln can O' N cn0 4 0 � ,-, O a O O (D o 3 v 0 :3CD a C) z' � 3 m O rt CD CD Z) Q = o w :5 co_ � ° O (D CC] CD 4 0 CD Q) w O Q Q Q O O m CD �Z3- N cn 0 tl o Q cnn co m (D � 3 �. � (n _0 zr cn N n O CA c O V X O 3 CD <D�' .0-f rr m CD O � N 3 a 3 N rt � O C _ 3 c C (D 2) C. cD N CA am 7 IN 1P ti 3 rt W C a to CD O 1 B 0 e Alaska Native Tribal Health Consortium Division of Environmental Health and Engineering 1901 Bragaw Street • Suite 200 Anchorage, AK 99508-3410 • Phone: (907) 729-3500 • fax: (907) 729-4090 • www.anthc.ore August 24, 2011 Irene Catalone, Chief Executive Officer Interior Regional Housing Authority 828 27th Avenue, Fairbanks, AK 99701 Dear Ms Catalone: Re: Letter of Commitment for matching funds to a proposal for Alaska Energy Authority, Renewable Energy Funds Round V. It is with pleasure that the Alaska Native Tribal Health Consortium (ANTHC), Division of Environmental Health and Engineering (DEHE) is partnering with The Interior Regional Housing Authority in your proposed project to the Renewable Energy Fund of the Alaska Energy Authority. Your biomass projects in up to three villages are of exceptional importance to the future energy in Interior Alaska. In support of your project, ANTHC DEHE will commit up to $18,000 for each location, as an in - kind match in the form of project management services. These matching funds will be tracked and reported to you, as required for purposes of quarterly reporting to the Alaska Energy Authority, in the event that they award you the project. We wish you every success on your proposal and look forward to working with you on this important project. Sincerely, NLWO"CN-- Steven M. Weaver, P.E. Senior Director 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 aw �� 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 VA 813 W. Northern Lights Blvd. WD XM " Anchorage, AK 99503 IIIIIIIIIIED ENERGY AUTHORITY Attn: Butch White, Grants Administrator http://www.aidea.org/aea/Rene wableEnergyFund/ Round_V_J uly_2011/GrantDocumentsAuthorizedSigners5.doc 06 INTERIOR REGIONAL HOUSING AUTHORITY RESOLUTION 2011-12 A RESOLUTION AUTHORIZING IRHA TO SEEK AND APPLY FOR ALASKA THE ENERGY AUTHORITY RENEWABLE ENERGY FUND, ROUND 5 FUNDING FOR CONSTRUCTION OF WOOD - FIRED HEATING SYSTEMS IN INTERIOR VILLAGES WHEREAS: The Interior Regional Housing Authority provides housing and other services; and WHEREAS: high energy costs in the Interior are causing financial hardships in the villages of the Interior and seeking a lower cost renewable energy source is an important strategy to maintain sustainable communities. WHEREAS: Biomass has been identified by the Alaska Energy Authority as a viable strategy to reduce energy consumption and energy costs in Interior villages, and AEA Renewable Energy Fund Round 4 funded "Feasibility Assessments for Wood Heating" in the communities of Hughes, Ruby, Koyukuk, Nulato, Kaltag, Anvik, Nikolai and Holy Cross. WHEREAS: IRHA and TCC are currently conducting the feasibility study and anticipate completion by the end of the calendar year, and the three projects that demonstrate the best return on investment and largest impact to a community will be selected for construction; and, the next phase will be to design and construct biomass projects in three of the communities currently being evaluated under the feasibility study portion of the project, 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. AND BE IT FURTHER RESOLVED: That Irene Catalone, CEO, will act as point of contact for IRHA for purposes of this grant. BE IT FURTHER RESOLVED: That 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 1.6th DAY OF August, 2011. 828 27th Avenue • Fairbanks, Alaska 99701-6918 • Tel (907) 452-8315. 1-800-478-IRHA • Fax (907) 456-8941 jw+v- 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