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Table of Contents
Alaska Energy Authority
AEA-11-005-RE Fund Renewable Energy Fund Round 4
Port Graham Village Council Submittal: “Renewable Energy Development Project”
September 15, 2010
Page
Cover Letter
Table of Contents ...................................................................................................2
Grant Application ..................................................................................................3
Signed Certification Page ..........................................................................32
Grant Authorized Signers ..........................................................................33
Resumes
Port Graham Staff......................................................................................34
Chugachmiut staff......................................................................................36
Consultants.................................................................................................42
Grant Budget Forms, Spreadsheets and Gantt Chart
Project Cost/Benefit Worksheet.................................................................53
AEA11-005 Budget Form - Phase III........................................................55
AEA11-005 Budget Form - Phase IV........................................................56
AEA11-005 Budget Form - Combined Phases..........................................57
Project Spreadsheets
AEA11-005 Budget Detail.............................................................58
AEA11-005 Travel Budget Detail.................................................59
AEA11-005 Project Budget Consultants.......................................60
AEA11-005 Gantt Chart – Timeline..........................................................61
Port Graham Village Council Resolution 10-03................................................63
Letters of support/commitment
Port Graham Corporation...........................................................................65
Chugachmiut..............................................................................................66
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Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application 7/21/2010
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/RE_Fund-IV.html
Grant Application Form GrantApp4.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of costs
by milestone and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget form.
• 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.
SECTION 1 – APPLICANT INFORMATION
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Name Port Graham Village Council
Type of Entity:
Federally Recognized tribe
Mailing Address
P.O. Box 5510
Port Graham, Alaska 99603
Physical Address
5510 Main Street
Port Graham, Alaska 99603
Telephone
907-284-2227
Fax
907-284-2222
Email
Francis907@hotmail.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Patrick Norman
Title
First Chief
Mailing Address
P.O. Box 5510
Port Graham, Alaska 99603
Telephone
907-284-2227
Fax
907-284-2222
Email
pnormanvc@hotmail.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your application
will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
XX A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by its board
of directors, executive management, or other governing authority. If the applicant is a
collaborative grouping, a formal approval from each participant’s governing authority is
necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant
form. (Any exceptions should be clearly noted and submitted with the application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant funds for the
benefit of the general public.
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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.
Port Graham Village Biomass Waste Heat Demonstration Project
2.2 Project Location – Port Graham, Alaska is located on the most southern tip of the Kenai Peninsula,
in a region known as South Central Alaska. Port Graham is located on the southwestern tip of Alaska’s
Kenai Peninsula, along the coast of Kachemak Bay. Port Graham is the second to last village on the
peninsula and is located approximately 25 air miles south of Homer, Alaska. The closest neighboring
village is the Native Village of Nanwalek that is located 4.5 miles to the west. A state-owned 1,850 foot
by 50-foot gravel airstrip sits in the middle of the Port Graham community. The only access to Port
Graham is by air or water. Water access experiences periods of stormy weather that creates violent seas
that inhibit or prevent water transportation and at times cancels regularly scheduled flights.
Port Graham community is predominately of Alutiiq heritage where approximately 85% of the residents
are Alaskan native. One hundred thirty-four (135) Sugpiaq people reside in the Native Village of Port
Graham overlooking Cook Inlet. Port Graham Village Council is the federally recognized Alaska Native
tribal council. The council and the community that is administered by the council desire to maintain their
cultural identity and ties. Many members participate in traditional hunting and gathering methods while
observing cultural traditions.
Households and community buildings in the target area rely, heavily on electricity and heating diesel fuel
for energy services.1 The area encompasses 5.9 square miles of land with adjacent village corporation
lands extending approximately 20-miles from the community; winter temperatures range from 14 to 27
degrees Fahrenheit; while summer temperatures vary from 45 to 60 degree Fahrenheit. Average annual
precipitation is 24 inches.
2.2 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind XXX 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 XXX Design and Permitting
Feasibility XXX Construction and Commissioning
Conceptual Design
1 Port Graham School is owned and operated by Kenai Peninsula Borough that by singular exception heats the
school with propane that they supply.
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2.3 PROJECT DESCRIPTION
Port Graham Village Council and Chugachmiut are planning implementation of a 1.45 mmbtu biomass
community building heat utility for Port Graham, Alaska. A feasible biomass technology option has been
identified to utilize a GARN Boiler to provide hot water heat from a woody biomass fuel source that can
be obtained from Port Graham Village Corporation lands on a sustained basis. An existing road system
supplies access to the fuel source. The project will provide hot water to heat Port Graham community
buildings (New Fire Hall (and accessory building housing a 4-wheeler foam fire trailer), the Old Fire
Hall, the Port Graham Health and Dental Clinic, the Port Graham Village Council Office, the Port
Graham Museum/HeadStart Center and the Port Graham Corporation Office) at a price sufficiently below
the cost of current heating costs using fuel oil to justify investment. Existing community buildings fuel
oil heating systems can be retro-fitted to accommodate hot water from the proposed wood-burning GARN
Boiler and rely on the existing fuel oil-fired hot water heating equipment for backup. The GARN Boiler
community building heating option will provide heat at less than the current fuel oil based system
displacing more than an equivalent amount of diesel fuel on a Btu basis.
A conceptual design and feasibility review for a central combined heat and power (CHP) biomass-fired
plant was completed in 2009. Detailed engineering and economic evaluations were included. Three –
phase power grid connection is necessary for a central CHP facility viability. In the mean time,
community buildings and homes in Port Graham must rely on expensive fuel oil for heating. The
proposed GARN Boiler hot water distribution system will be designed to:
• Heat the identified community buildings at significantly lower cost than fuel oil;
• Be expandable to connect to additional GARN Boilers and hot water distribution systems to heat
homes throughout the Port Graham community, and eventually;
• Be connected to a central CHP biomass fired facility.
The communities of Port Graham and Nanwalek continue to work towards connecting the communities to
Homer Electric’s three-phase power grid system. Three-phase power is essential for long-term economic
development for Port Graham and Nanwalek, Alaska. Port Graham Village Council owns a fish cannery
that currently cannot operate partly due to the high cost of operating a diesel 3-phase power plant. To be
operational and create jobs in the community, a lower cost, 3-phase power source is needed. Fish hatchery
operations in Port Graham Cannery and in Nanwalek also require 3-phase electrical power to provide the
necessary water flow required by these operations. Nanwalek is also developing a seaside gravel / rock
mining site that will require a 3-phase electrical supply for motors to power conveyor belts. These
businesses and a central biomass CHP project will provide up to 60-70 seasonal and year-round jobs in
the two communities.
A feasibility study that included a resource assessment was completed July 2007 through funding from U.
S. Department of Energy (DoE) Tribal Energy Program. A conceptual design for a CHP biomass power
generating facility was completed in 2009. This Port Graham Biomass CHP Project remains on DoE’s list
of projects eligible for development assistance. Its viability depends upon completion of the three-phase
connection to Homer Electric’s power distribution grid system.
Office of Indian Energy and Economic Development funded an assessment of capacity and capability of
the Port Graham Village Council to develop, staff, and manage a biomass utility business. The Building
Tribal Energy Development Capacity for the Port Graham Biomass Project2 assessment was completed
September 30, 2009, and a final report was submitted late October 2009. The Council currently plans to
develop a tribally owned, non-profit entity to operate the biomass CHP utility. This non-profit entity
would operate the proposed project to meet costs for capital investment, operations, and maintenance. The
2 Building Tribal Energy Development Capacity for the Port Graham Biomass Project, Margaret
King and Associates, Inc., October 2009.
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use of a for profit entity would seek an investment/operating partner to capitalize on available tax
incentives and this project may not be of interest since it’s tax incentive is assumed would be of little
value and not attractive. If tax incentive is of value, then The Council would develop a for-profit entity.
Port Graham Village Corporation has supplied a letter of intent to enter into a fuel source
agreement to supply the proposed GARN Boiler (and eventually a CHP plant). The initial
GARN Boiler system will require 120 tons/year of log fuel at 20% Moisture Content (MC).
Equipment requirements and options for biomass extraction and fuel preparation are currently
being evaluated. Port Graham Corporation currently owns at least 16,000 acres of forested lands
that are on operable slopes and within ½ mile of the existing road system. Readily accessible
Native Allotments near Port Graham contain 2877 acres of over mature Sitka spruce forest and
forest inventory data from the United States Forest Service in the area show there is 75 bone dry
tons of biomass/acre in this forest type. The Native Allotments alone contain 215,775 bone dry
tons, enough to sustainably provide 2158 bone dry tons/year indefinitely without further
development.
Port Graham Village Corporation has asked Chugachmiut Forestry and Fire Management to
develop a Forest Management Plan (PGVC-FMP) for their timberlands suitable for biomass fuel
supply. This PGVC-FMP will use the existing road system to access areas where timber stand
improvement projects will be conducted. Windthrow and other damaged trees can be accessed
from this road system. Considerations include resource ownership and compensation plan,
harvesting planning process and approvals, permitting; employment requirements (number of
people involved, payroll, benefits, etc); equipment requirements for harvesting, transportation
and inventory management (specifying equipment, and estimating costs and maintenance
budgets); and inventory storage requirements.
Port Graham Native allotment landowners that desire to participate in the fuel supply for the
biomass project will have Chugachmiut Forestry and Fire Management develop a Forest
Management Plan (NA-FMP) for their timberlands suitable for biomass fuel supply. Part of this
process includes identifying specific Native allotment owners and the amount of timberlands
they would like to have participated in the fuel supply process as well as conducting the required
NEPA documents for Native Allotments.
Staffing requirements are anticipated to initially require 9 - 12 people to stockpile fuel during summer
months and to operate and maintain the system during cooler months. Eventually a larger fuel supply
extraction crew, or better described as a harvesting crew, will be required to support a central CHP plant
fuel requirements. (update)
The selected site for the GARN Boiler is the Old Water Plant Building, owned and controlled by Port
Graham Village Council. They will own and operate the facility. Nearby community buildings that will
be heated by the proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building
housing a 4-wheeler foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office,
the Port Graham Museum and the Port Graham Corporation Office.
A detailed project cost assessment is currently being completed via a DOE Energy Efficiency Block
Grant (EECBG). A final report will be issued in early October. The GARN Boiler will use a locally
available, sustainable supply of biomass fuel. Preliminary findings suggest that two Garn Boiler model
WHS-3200 are required to satisfy the heating demand for the selected community buildings. Capital
investment requirements for the GARN Boilers, the hot water distribution (piping) system, and building
retrofit to integrate the new hot water supply with existing fuel oil fired systems is anticipated to be
approximately $200,000. Fuel cost savings, diesel vs. wood, is projected to be approximately $45,000 per
year at current diesel prices. As diesel fuel cost is expected to continue rising, fuel cost savings could be
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substantially higher. Preliminary findings suggest that the project to heat community buildings will have
an eight to ten pay out period. The engineering and financial consulting team is providing realistic
economic projection for development and operation of the proposed GARN Boiler system using
information provided by the equipment manufacturer, Port Graham Tribal Council and Chugachmiut.
An economic model is being refined for the final report to demonstrate the financial viability of the
GARN Boiler project. Key input parameters include capital costs, significant operating costs (fuel,
supply, labor, maintenance, etc.), and financing considerations (debt / equity ratio, grant support, interest
rates, taxes, etc.). Model outputs are return on equity investment, debt service coverage ratio and net
present value.
An economic model is being developed to assess the financial viability of the GARN Boiler project. Key
input parameters include capital costs, significant operating costs (fuel, supply, labor, maintenance, etc.),
and financing considerations (debt / equity ratio, grant support, interest rates, taxes, etc.). Model outputs
are return on equity investment, debt service coverage ratio and net present value.
2.4 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower
energy costs, etc.)
The Port Graham Village Biomass Waste Heat Demonstration Project provides several significant
benefits to Port Graham, Alaska, which includes increasing its self-sufficiency by lowering the cost of
home heating over the long-term, and gaining locally supplied heat generation and distribution system for
this remote community.
One regional benefit is this project will enhance the community’s ability to provide alternative sources of
heat and conceivably a consistent supply of power to the community. A statewide benefit is this project
would serve as a template for biomass for heat/power generation that could be adapted for other small
remote Alaska communities with a sustainable biomass resource. Benefits to the community, region and
state are briefly described here:
1. Reduced diesel fuel oil consumption for heating the Port Graham Community facilities and
housing, 53,100 gallons, and Port Graham Cannery, 25,000 gallons, usage up to 78,100 gallons
diesel displaced annually.
2. Community heat and power project brings more local control and local jobs
a. Local control of management, operations, and maintenance by independent power
producer formed by Port Graham Village Council
b. Meaningful employment and training to manage, operate and maintain independent
power source
c. Local resources used for biomass fuel source provided under a purchase agreement from
local landowners, increasing income to the local Port Graham economy.
d. Estimated number of direct full time, part-time and seasonal jobs for operation and
maintenance of local power is approximately 9-12.
e. Sustainable and healthy timberland management through development of a forest
management plan that includes woody biomass production.
f. Energy supply security that along with the other benefits would have an overall economic
benefit to helping sustain the community and preserving their way of life.
3. The Port Graham Village Biomass Waste Heat Demonstration Project could demonstrate
economic biomass power for small remote Alaskan communities using a sustainable biomass
utilization model, which includes using local resources and labor/employment. Examples of
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benefits are listed:
Green house gas benefits since biomass renewable energy projects are considered carbon neutral
producers.
2.5 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.
Costs associated with the project have been estimated at $845,805 as summarized below and provided in
this application.
A detailed project cost assessment has recently been completed using a contractor, T. P. Roche Company,
whose team includes a biomass project development and financial consultant, a biomass plant design
engineer, and a biomass supply consulting forester.
Detailed Resource Assessments
Chugachmiut’s Forestry program includes a Geographic Information System (GIS) and forest inventory
data from the Native Allotments in the Port Graham vicinity and for the Port Graham Corporation land.
We have completed detailed timber typing for all Native Allotments in the area and basic timber typing
for the Port Graham Corporation lands. Since the 1980’s various timber cruises and stand exams have
been completed and we are working on updating these data. Our data show that there is at least 16,000
acres of Sitka Spruce forest which is in operable terrain within ½ mile of an existing road system to
extract biomass from in the Port Graham Corporation ownership. These lands are currently being
inventoried using remote sensing techniques, primary 3-P remote sensing biomass cruising, and field
inventories which will be completed during the 2010 and 2011 field seas son. Chugachmiut’s GIS and
forest inventory data for Native allotments in the vicinity of Port Graham show that there is currently
2788 acres of over mature Sitka spruce which is readily accessible and an additionally 2012 acres of over
mature Sitka spruce which can be accessed with additional road construction. Forest Inventory and
Analysis (FIA) data from the United States Forest Service FIA program report that over mature Sitka
spruce in the vicinity of Port Graham average 75 bone dry tons of biomass per acre. The currently
accessible stands contain 215,775 bone dry tons of biomass, enough to sustainably provide 2158 bone dry
tons/year indefinitely without further development. The Native Allotments alone can sustainably provide
over 4 times the required fuel for the project.
Capital Investment is based upon preliminary design and engineering estimates provided by rem
Engineering, Inc. Fuel cost estimates are based on prior feasibility study findings and Chugachmiut
forester assessments. Fuel usage and online stream factor are based on rem Engineering, Inc. input.
Refer to the Cost Benefit Worksheet regarding project payback and the cost benefit ratio.
To assess risks associated with the project, rem Engineering, Chugachmiut and Port Graham evaluated
project performance sensitivity to key assumptions. Those assumptions are listed and discussed here.
Fuel Usage - The system is designed to produce the specified amount of hot water from 260 pounds/hour
of fuel. Two factors will determine how much fuel is consumed in the heat generating operation. The first
is the systems efficiency. Will the system perform at the efficiency its manufacturer claims? This
uncertainty can be limited by evaluating the experience of other customers. Clarifying and detailing
manufacturer guarantees will be important to do. The second is fuel quality. Planning and budgeting for
fuel with higher moisture content is also important. The system design is based upon fuel quality
projections provided to rem Engineering, Inc. by Chugachmiut forestry personnel. If the fuel has higher
moisture content or has lower energy content, more fuel will be consumed to reach design production
levels. Increasing fuel usage from 260 pounds/hour by 10% to 286 pounds/hour reduces return on equity
to 23.34% and reduces debt service coverage ratio to an unacceptable 1.03. Decreasing fuel usage by 10%
to 234 pounds/hour increases project return on equity to 37.44% and increases debt service coverage ratio
to 1.67.
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Estimated Direct Financial Benefit – The annual cash influx benefit to Port Graham community as
measured from the economic mode base case for direct financial benefit is estimated to be $12,000 fuel
supply purchase and $15,000 payroll. The fuel purchase expenditure includes labor and stumpage fee to
timber landowner for fuel supply. Additional benefits would be what the Tribe would pay for delivered
cord wood and what a landowner would get for stumpage. If during the demonstration phase of the
project, the Corporation contributes wood, then that would be a tax contribution.
Estimated Public Benefit – An economic multiplier in dollars was not developed but an assumption of a
2- to 5-times multiplier on the Estimated Direct Financial Benefit would be a good indicator.
2.6 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. $697,475.00
2.7.2 Other Funds to be provided (Project match) $148,330.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $845,805.00
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 including
estimates through construction)
$845,805.00
2.7.5 Estimated Direct Financial Benefit (Savings) $57,646/year
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.)
$
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.
For this project the Port Graham Village Council will enter into an agreement with Chugachmiut to
provide Project Management and Technical Assistance. Mr. Charles Sink will be the Principal-in-Charge
of the direction and management of this project. Mr. Sink, Director of Chugachmiut Enterprise and Trust
Division has extensive experience in this field. His resume has been attached as an integral part of this
application.
His management of this project will be complemented by additional Chugachmiut staff including
Chugachmiut Forestry Manager Nathan Lojewski and Chugachmiut Facilities and Project Manager Elmer
Moonin. Additional resources are discussed in Section 3.4 below.
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.)
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Scope of Work
The Scope of Work is in 2 categories, corresponding to Phases 3 and 4 of Alaska Energy Authorities
Request for Grant Application, Renewable Energy Fund Grant Recommendation Program Round IV.
Phase III project activities include final design and permitting. Phase IV project activities include
construction, commissioning, initial operations and reporting. Specific tasks for each phase are described
below.
Phase III Activities and Milestones
Task 1 - Renewable Energy Resource Supply
Our objective in this task is to design a dependable fuel supply chain that includes fuel supply
agreements, as well as related transportation and inventory management agreements. Specific tasks
include:
• Develop sample fuel supply agreements and assess necessary contractual terms to develop a
sustained fuel supply for the proposed facility.
• Review sample fuel supply agreement with Port Graham Village Corporation.
• Evaluate fuel supply entity alternatives. Options include creation of a new, for-profit corporation;
establishing a new operating division of Port Graham Village Corporation; establishing fuel
supply entity as division of new Port Graham utility entity; etc.
• Continue to refine and update resource assessment (growth rates, windfall, airport and road
projects clearing, allotment owner interest, etc)
• Continue to refine and update supply chain economics assessment (capital requirements for
equipment, stumpage, labor, fuel cost maintenance, yard-operating costs, etc).
• Establish fuel supply entity.
• Negotiate fuel supply letter of intent with Port Graham Village Corporation.
• Negotiate binding fuel supply contracts.
Task 2 - System Design
Our objectives in this task are to finalize engineering/design work. Specific tasks include:
• Finalize Detailed GARN Boiler and Hot Water Distribution System Engineering and Design –
rem Engineering has provided a preliminary design package. The preliminary design package
includes turnkey capital estimate and project scope description, equipment specifications,
performance data, budget, and schedule.
Task 3 -Project Cost
Our objective in this task is to refine and finalize all cost estimates in preparation for project
implementation. Specific tasks include:
• Finalize engineering estimates of project costs.
• Refine Project Economic Model - Provide a financial model including capital costs, operating
costs, financing terms, etc. The model will be used to evaluate alternative deal structure and
financing strategies. Inputs to the model will include investment and operating cost projections,
fuel supply cost projections, financing terms, deal structure equity and tax implications, site-
specific operations and maintenance costs (including land, fuel, transport, employee training,
salaries and benefits, equipment maintenance, power, water, insurance, etc). The model will serve
as a basis for justifying financing package elements including grant expenditures.
• Financing and Funding - Refine and update evaluation of available project funding mechanisms,
public and private incentives and funding sources for project implementation. Determine optimal
financing package elements.
• Negotiate letter of intent with providers of financing package elements.
• Negotiate binding financing agreements.
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Task 4 – Revenue Stream Agreements and Management Plan
• Hot Water Sales - For heat distribution to community buildings, develop the necessary language
and terms needed for sales agreement. Negotiate agreements for the sale and delivery of hot water
energy from the GARN Boiler, including contract capacity, delivery terms, rates, and payment
terms, scheduling, reimbursement of expenses, operation, control, metering of output,
maintenance, etc.
• Monetization of Renewable Energy Credits - Our objective in this task is to optimize the value of
the renewable energy credits associated with GARN Boiler operations. Options include selling
“future credits” for cash now to offset investment costs and selling green credits independently as
they are created. Agreements will be developed for certification and trading of renewable energy
credits created by the project.
Task 5 - Site Agreements
Our objective in this phase is to eliminate any uncertainty about the site’s suitability to host the proposed
project. Specific tasks include:
• Site and right-of-ways surveys
• Title work
• Archeological and endangered species reviews
• Lease Agreements
• Etc.
Task 6 - Permits
Our objective in this task is to identify and obtain all permits required for construction and operation of
the GARN Boiler system and its associated activities (pipeline installation, fuel harvesting and
transportation, etc.). Specific tasks include:
• Environmental and regulatory analysis of the proposed plant – Specify emissions and waste
disposal characteristics and permitting information requirements. Develop budget, schedule, and
action plan.
• Refine environmental permitting and regulatory compliance plan for the proposed plant.
• Finalize emissions, effluents, and solid waste estimates as basis for permit scoping.
• Develop budget, schedule, and action plan.
Task 7 - Business and Operating Plan
Our objective in this task is to optimize project business structure (ownership, legal structure, tax
implications, etc.), system expansion considerations, Village objectives, and project financial
performance requirements. Specific tasks include:
• Develop project business model (ownership, legal structure, tax implications, etc.). Consider the
business form (e.g., tribal utility, partnership, other tribal entity) and evaluate legal issues,
contractual requirements, regulatory requirements, management costs and logistics for the
formation and operation of each. An important factor in determining he business model for the
project will be future system expansion facilitation. Most likely, the initial business model will
be either establishing a “Not-for-Profit” Tribal Utility or incorporating the new operation into an
existing village department.
• Determine optimal deal structure - To enhance economic performance, it may be desirable to
structure the project in a way that allows for capturing available tax incentives. Our objective in
this task is to optimize the deal structure from a tax and project finance perspective for the
development and ownership of the project, including capitalizing on available tax credits. We will
structure site control and lease agreements to satisfy the revenue and policy objectives of the
Village, while at the same time complying with applicable federal law relating to leasing and fair
market valuation and optimizing production tax credits and other potential tax subsidies. Key
considerations are allocation of project development risk, preconstruction development budgets,
schedules, and milestones; agree upon rights of compensation before and after financing, and
terms and conditions for key project issues such as Village employment and preferences.
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• Arrange for financing - The project may be eligible for BIA and USDA guaranteed loans.
Obtaining funds from these sources will require preparation of a comprehensive prospectus
document that addresses all aspects of project development, including economic modeling, risk
assessment, and risk mitigation plans. We will identify and solicit participation from candidate
lenders, and investors and negotiate key agreements to obtain a balance of sustainable and
complimentary funding, including grants, loans, and investment funding.
Phase IV Activities and Milestones
Task 1 - Renewable Energy Resource
Our objective in this task is to insure the timberlands used for the biomass fuel supply are ready for
harvesting. We will be in contact with timberland owners regarding the timber harvest schedule and
accessibility to the timberlands. In addition, we will confirm the timber harvesting schedule with for the
timber harvesting company/village corporation and insure all loggers are properly trained and available.
Task 2 - Verify and Update Projections and System Efficiency
Prior to and at the time of construction; contracts and agreements, labor, biomass fuel, construction
material, equipment delivery, contractors and weather projections will be reviewed and updated for any
effects to project budget or schedule. The project team will review the updated projections on the project
schedule, budget, resource and trained availability for final verification of project readiness. Any
adjustments and remedies will be implemented to complete the project as described.
Task 3 - Existing Heating Systems
Our objective in this task is to coordinate the integration of the new biomass heating system loop with the
selected community buildings heating systems. The selected buildings that will be heated by the
proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building housing a 4-wheeler
foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office, the Port Graham
Museum and the Port Graham Corporation Office. These buildings are heated by baseboard circulated
hot water/glycol mixture heating systems. The biomass boiler heating system loop will become the
primary source of heating for these buildings with the more expensive existing fuel oil heating systems
becoming redundant back-ups. The two systems will remain separate, distinct systems protected with
valves, shut-offs and instrumentation for reliable service to buildings providing important community
services such as the health clinic. Protections and monitoring for back flow prevention, excess pressure,
freezing, contamination and heating system switching to back-up will be implemented.
Task 4 - EPC Contracts / Agreements
The overall goal in this task is to maximize flexibility and options, limit liabilities and structure the right
combination of contracts based on available funding resources. Alternatives include lump sum, open
book cost plus, guaranteed maximum price (GMP) and other types of contracts. Other considerations
include favorable terms for payment, equipment deposits and performance bonds and transferring risk
associated with construction while still maintaining control over cost and quality. We will build into the
construction contracts provisions to assist the sponsor’s various contractors to work together, including
management tools and contracting industry standards and procedures to implement a chronological list of
all the important steps from initial development to final completion, ensuring that every task and step has
an associated person who is responsible for seeing that it gets completed, that accounting is conducted
properly and regularly, and that various contractors coordinate to achieve the best result. We will seek
opportunities for the village participation in the process (site preparation, foundations, buildings, roads,
etc.)
Task 5 - Proposed System Design: Construction and Commissioning
Our objective in this task is to construct and commission the project. We will develop a construction and
commissioning schedule for all phases of construction. We will track physical changes (location,
elevation, type) to the heating system loop, interconnection points and boiler and building specifications
on as-built drawings in the field. These changes will then be incorporated into a final set of as-built
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drawings for the project once commissioning is complete and the project is in operation. Start-up,
commissioning and system operational requirements and manuals that have been developed in phase 3
will be implemented. Specific tasks will include:
• Construction Plan and Schedule
• Commissioning Plan and Schedule
• Modifications to Design during Construction
Task 6 - Staffing Plan
Finalize workforce plan for recruiting and managing personnel for facility construction, operation, and
fuel supply collection and management. Document Plant Manager qualification requirements to support
recruiting plan. Develop detailed operator qualifications package and job descriptions for all employees.
Complete training program design. Hire employees to staff the boiler house as well as fuel harvesting
operations. Specific tasks will include:
• Recruiting plan
• Complete job descriptions for all employees
• Complete training program
• Hire employees
• Implement training program
Task 7 - Project Cost
• Tracking project cost against project budget
• Propose budget modifications (as needed)
• Manage cost overruns
Task 8 - Environmental
• Environmental monitoring (as required by permitting and determined in phase 3)
Task 9 - Permitting
• Reporting to permitting agencies (as required and determined in phase 3)
Task 10 - Analysis and Recommendations
• Update business plans and agreements as needed to account for actual costs
• Final project report (as built specifications, drawings, final budget, schedules, and
recommendations)
• Periodic O&M reports (actual O&M, fuel and equipment costs, energy output, project
availability, conversion efficiency, update renewable energy resource assessment)
• Community Briefings - Inform Council and community with regular financial and project
developments reports.
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.)
Please refer to Section 3.2 Project Schedule for a full listing of Project Milestones. A Gantt Chart
has been attached to this application that was developed based on the aforementioned Project
Schedule and the assumption funding will be awarded no later than July 1, 2011. All tasks and
milestones have been further cross-referenced with the Project Budget.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the project.
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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.
Organization Description
The Port Graham Village Council will enter into an agreement with Chugachmiut to provide Project
Management and technical assistance with this project. For Port Graham, Chief Patrick Norman will
provide on-site project management to address day-to-day issues that arise, he and Charlie Sink will be
working close together on this project to ensure success. Port Graham Tribal Administration will provide
the services of Ms. Francis Norman, Tribal Administrator and Dana McMullen, Tribal Bookkeeper to
perform reporting and accounting duties for this project.
For Chugachmiut, this project will be managed by Charles Sink, Chugachmiut Director Enterprise and
Trust Services. He will be supported by Elmer Moonin, Chugachmiut Facilities and Project Manager and
Nathan Lojewski, Forestry Manager.
The Project Development Team will include a number of consultants with particular expertise in
development of biomass-fired power plants. They are T. P. Roche Company (Tom Roche, economic
modeling, prospectus, deal structure, facilitation, fuel supply issues, renewable energy credits, contract
negotiations, etc), rem Engineering (Doug Latulippe – engineering, EPC issues facilitation), and Ater
Wynne (Doug McCourt – technical support on contract negotiations). These supporting organizations
qualifications for project participants are provided below. Other specialists may be added to support
specific activities as the project proceeds (staffing, training, project financing, etc.).
Project Facilitation
We will develop “working teams” comprising representatives of the Port Graham Village Council, Port
Graham Village Corporation, Chugachmiut and consultant representatives, state officials, and others, as
appropriate, to facilitate project development. These work teams will address project specific issues such
as commercial terms, permitting, etc.
Reporting
We will provide monthly status reports and summary reports at each project milestone.
Commitments
This project has brought together several partners to ensure the success of this project. The Port Graham
Village Council, the Port Graham Corporation and Chugachmiut.
The Port Graham Village Council has committed a 360 square foot building, with an estimated assessed
value of $23,000, to this project to house the GARN boilers. The building used to house the Port Graham
Pump House for supplying the community with potable water. This building will require some minor
modifications to meet state fire codes. Mr. Walter Meganack, Jr. has provided a letter of support to
illustrate the commitment Port Graham Corporation has in this project.
Chugachmiut has committed the Health and Dental Clinics to participate in this demonstration project as
a show of support to this community so deeply invested in bettering the quality of life for its residents.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
As a key project funder, providing AEA with information about the Port Graham Village Biomass Waste
Heat Demonstration Project is important to us. In addition to the steps identified below, the Project
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Manager will meet with the AEA COTR to determine if other communication steps are needed, and/or if
some of the proposed steps should be replaced with other procedures.
1. Project Manager, with assistance from technical representatives will keep a daily log of
operations. Monthly reports will be provided to AEA Contracting Officer’s Technical
Representative (COTR) assigned to project to assess project completion rate and project
spending. Use of electronic mail (email) and telephone communication will be utilized to extent
possible.
2. Project management team will provide Project Manager with verbal and written reports. Written
reports will be submitted monthly.
3. Project will include monthly meetings in Anchorage for Phase III projects that will include
Project Manager, T. P. Roche Company representatives Tom Roche and rem Engineers Doug
Latulippe. Summary of meetings will be made by Project Manager.
4. Project development in Phase IV will include daily site meetings by Site Project Manger Chief
Patrick Norman who will record daily log of operations overseeing contractor hired. Doug
Latulippe, Biomass Plant Engineer, will visit site periodically during project development along
with Project Manager. Reports of site visits will be submitted to Biomass Plant Engineer who will
include pertinent information on site development to COTR.
Project testing of technology will be overseen by Biomass Plant Engineer who will provide written
reports to Project Manager. Project Manager will provide relevant information to COTR.
3.6 Project Risk
Discuss potential problems and how you would address them.
Potential problems are identified and include a risk assessment and how we would address the risk.
Mention of probability will be stated for some potential problems.
Potential problems are identified and discussed as follows:
1. Choosing the right size biomass boiler system for this effort is key to the success of the project.
The larger the project, the greater “economy-of-scale” and profitability. Project size is limited by
fuel supply and demand for hot water produced.
2. Fuel source agreements with local landowners. Port Graham Corporation and willing Native
allotment owners are essential for the operation and sustainability of the proposed Port Graham
Village Biomass Waste Heat Demonstration Project system. Initially fuel will be provided
through an agreement with the Port Graham Corporation, however the amount of fuel to be
supplied from each landowner will depend on how successful this demonstration proves to be and
by how much volume will come from each landowner and the stumpage price that they expect. A
biomass timber cruise is proposed in Phase III tasks to fully assess fuel supply sustainability.
Landowners will be presented with an understandable measurement system to determine how
much and when biomass will be harvested from their lands. Biomass is usually measured in tons
and such measure needs to be demonstrated to the landowners. Some examples of how this could
be done include weighing whole trees harvested or chipping trees and weighing the chips
produced. Stumpage price may the more difficult negotiation with the landowners. Area
landowners during a timber sale late 1980s and early 1990s experienced peak stumpage prices for
an export log sale. For Native allotment owners, BIA will be asked to bring one of their BIA
Northwest Region log-scalers that have current market knowledge of chip markets and biomass
markets to talk to local landowners. Since Port Graham Corporation would benefit from cheaper
power, a reasonable assumption is made that they would agree to a more reasonable stumpage fee
for the project viability since they would be the majority fuel source supplier and the major
benefactor of biomass project. Biomass obtained from Native allotment land could also be milled
in a small local sawmill for specialty products. If such wood were sold at higher stumpage fees
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than chips produced, negotiating chip prices with them probably would be more favorable.
3. Along with the fuel source agreement that would settle on the stumpage fee paid to landowners
would be the cost of fuel source extraction Port Graham Village Biomass Waste Heat
Demonstration Project once this project proves a success. Finding the right combination of
machinery to harvest and produce the fuel supply requires research and selection and buying new
or used equipment requires economic decision-making. Buying new machinery requires a
premium cost where good used machinery that is easier to operate and maintain may be more cost
effective. Phase III of this project will look at selection of the right mix of machinery to bring to
Port Graham using these criteria and others.
4. The technology manufacturer of biomass technology, in general, guarantees their work for up to
one-year. Careful selection of the manufacturer is essential and will be the responsibility of the
Plant Design Engineer. In addition to the guarantee and assurances, Phase IV tasks include testing
the technology, training of local personnel, and establishment of a long-term relationship with the
manufacturer to provide technical assistance and provide scheduled annual maintenance. Phase
IV proposes a period of technical assistance be maintained with the Plant Design Engineer to
ensure technological operating success.
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.
Extent and amount of energy resource available
Port Graham Village Corporation is the major landowner in the area. Shown in the U. S. Department of
Energy feasibility study for Port Graham Village Council and Chugachmiut, The Potential for Biomass
District Energy Production in Port Graham, Alaska shows an estimated available biomass of 250,000 tons
of utility grade or less quality wood within the Port Graham Corporation road system. This is enough
wood for 50-years yielding approximately 5,000 tons per year. An additional amount of wood would be
obtained from Native allotment owners adjacent to the road system. It is also anticipated that the State
Department of Transportation and U. S. Federal Aviation Administration sponsored Nanwalek and Port
Graham Airport Project proposed for construction approximately 2012-14 will make approximately 8,500
tons3 biomass from 106 acres of land (estimated for airport foot print and road clearing to Port Graham and
Nanwalek) made available in the clearing process. In addition, opening the road between Port Graham and
Nanwalek would allow additional Native allotment owners and English Bay (Nanwalek) Village
Corporation timberlands accessible. English Bay Corporation timberlands were “high grade” logged late
3 Based on estimated U. S. Forest Service Packee‐data_request.pdf; Kachemak Bay Estimated Biomass
Per Acre of Forest Type and Ownership Category, tons per acre for Sitka Spruce that has a mean of 81
tons biomass per acre of mature forest land Port Graham, Alaska area.
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1980-1992 leaving a forest of utility grade wood or less along their road system. Estimated tonnage
available from the Native allotments and English Bay Corporation lands as a biomass Sitka spruce woody
fuel source would more than double Port Graham Corporation accessible biomass fuel supply, although
that estimate has not been calculated using similar technology as reported in the feasibility study and
therefore a stated estimate is not made here. However, the estimated tonnage required by this proposed
project is approximately 160 tons biomass per year. The additional acreage that would be available and
accessible is more than enough to supply on a sustainable basis. English Bay Corporation timberlands also
have an existing road system except between the community of Nanwalek and their existing road that is
approximately two miles distance. Nanwalek IRA Council is received funding from BIA Indian
Reservation Roads Program to develop this connection. Current road building construction is planned to
start 20104.
Port Graham Village Corporation has asked Chugachmiut Forestry and Fire Management to develop a
Forest Management Plan (PGVC-FMP) for their timberlands suitable for biomass feedstock supply. This
PGVC-FMP will use the existing road system to access areas where timber stand improvement projects
will be conducted. Windthrow and other damaged trees can be accessed from this road system.
Considerations include resource ownership and compensation plan, harvesting planning process and
approvals; employment requirements (number of people involved, payroll, benefits, etc); equipment
requirements for harvesting, transportation and inventory management (specifying equipment, and
estimating costs and maintenance budgets); and inventory storage requirements.
Chugachmiut’s Forestry program includes a Geographic Information System (GIS) and forest inventory
data from the Native Allotments in the Port Graham vicinity and for the Port Graham Corporation land.
We have completed detailed timber typing for all Native Allotments in the area and basic timber typing for
the Port Graham Corporation lands. Since the 1980’s various timber cruises and stand exams have been
completed and we are working on updating these data. Our data show that there is at least 16,000 acres of
Sitka Spruce forest which is in operable terrain within ½ mile of an existing road system to extract
biomass from in the Port Graham Corporation ownership. These lands are currently being inventoried
using remote sensing techniques, primary 3-P remote sensing biomass cruising, and field inventories
which will be completed during the 2010 and 2011 field seas son. Chugachmiut’s GIS and forest
inventory data for Native allotments in the vicinity of Port Graham show that there is currently 2788 acres
of over mature Sitka spruce which is readily accessible and an additionally 2012 acres of over mature
Sitka spruce which can be accessed with additional road construction. Forest Inventory and Analysis
(FIA) data from the United States Forest Service FIA program report that over mature Sitka spruce in the
vicinity of Port Graham average 75 bone dry tons of biomass per acre. The currently accessible stands
contain 215,775 bone dry tons of biomass, enough to sustainably provide 2158 bone dry tons/year
indefinitely without further development. The Native Allotments alone can sustainably provide over 4
times the required fuel for the project.
Port Graham Native allotment landowners that desire to participate in the feedstock supply for the biomass
project will have Chugachmiut Forestry and Fire Management develop a Forest Management Plan (NA-
FMP) for their timberlands suitable for biomass feedstock supply. Part of this process includes identifying
specific Native allotment owners and the amount of timberlands they would like to have participated in the
feedstock process.
The feedstock extraction crew, or better described as a harvesting crew, is anticipated to have minimum
requirement of three to four employees working an approximate 7-8 month season. Harvesting could be
shortened with addition of employees and equipment but would add cost and make a shorter season for the
crew.
Pros and Cons proposed energy resource versus other alternatives
The following section looks at other renewable energy propagation systems and their suitability to create
the desired heat and power for Port Graham and neighboring communities of Nanwalek and Seldovia,
4 Nanwalek IRA Council 2008 Five‐Year Strategic Plan, Nanwalek IRA Council, Page 2, September 2008.
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Alaska. This project proposes use of biomass CHP system while other proven renewable energy projects
exist and some of those are presented below. New emerging technologies are not addressed because
seeking funding for un-proven systems is generally not allowed in funding proposals. The discussion
below starts off with addressing the existing status quo power delivery system and the advantages and
disadvantages of upgrading the system to 3-phase power delivery and interconnection.
1. State of Alaska has proposed that wood heat is the only cost effective alternative use of woody
biomass. It is certainly estimated to be the most cost effective although in practice what we have seen
become of some wood heat only projects in the state is the system worked but several projects have
not been sustained for various reasons. Woody biomass for CHP does have limitations on feed stock
availability over the life of the project and faces economy of scale on obtaining and producing the
woody biomass feedstock. By including the Native village corporations with their extensive fuel
source and road infrastructure, long-term fuel source agreements that would utilize lower grades of
wood and whose extraction could help with forest improvements of existing stands could be a
symbiotic relationship. Port Graham Corporation needs the benefits of three-phase power, heat and
cooling for cold storage capabilities of a larger than community only needs for heat and power. Port
Graham’s hatchery project and Nanwalek’s hatchery project and material rock source site
development also have the need for inexpensive sources of power. In coordination with the local
woody biomass CHP plant business, this group could conceivable control fuel source costs.
Controlling fuel source residual costs could help alleviate the relative high cost of fuel source
extraction and production.
2. Many sites across Alaska and elsewhere prefer development of wind power technology. Although
wind source studies have not been conducted in the area, general observations are that wind is
intermittent, variable, and tends to gust during fall to early spring. By study, intermittent winds are not
reliable sources of power to the extent that State of Alaska generally proposes wind power backed by
diesel power generation. It is assumed that wind tower generation has a higher capital investment that
the woody biomass project proposed. However, if the upgraded powerline is installed, adding more
power through wind generation to the grid system and local use could make economic sense. Woody
biomass power generation has shown reliable at sustained loads for 11-months, 2-weeks out of each
year. Wind generation in comparison cannot demonstrate such reliability except in steady wind
locations. HEA says they would have load balancing problems associated with wind power. Current
thinking in use of wind technology is to direct excess power to heating water storage systems and
using diesel power or battery storage during low wind periods. Port Graham’s U-shaped valley and
variable and turbulent wind may cause maintenance problems for wind towers. If these wind towers
were of 1-megawatt power generation size or larger, then repair and maintenance of these towers that
requires large equipment and expensive bearings and other maintenance and replacement apparatuses
may become cost prohibitive.
3. Hydropower is a reasonable alternative except for capital cost for development. There was a U. S.
Forest Service sponsored study conducted north of Port Graham Bay on a small stream for
hydroelectric development. Power output was undetermined although assumed would have small scale
power but cost was estimated at $7 million in 1988 dollars without power line or road access
development.
4. In stream generation and tidal power projects is deemed by Port Graham Village Council and are
communities to risky to salmon fish stocks that venture into Cook Inlet and into Port Graham’s and
English Bay Rivers. Community has expressed concern for their subsistence and economic resource
impact of possible effects on these stocks by such technology.
5. From Port Graham’s hatchery operation or possible cannery operation fish oil could be derived from
fish waste. Port Graham’s feasibility study covered this option and recommends fish oil be added to
biomass fuel to enhance Btu output of biomass.
6. Port Graham Bay was the original site of the first Russian American coal mine located at Coal Cove
along the north entrance to the bay. The coal is sub-bituminous with a low sulfur content but high
water content. Mineshafts are said to have been flooded by saltwater from under Cook Inlet where the
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mineshafts lead. A modern assessment of this resource was made but unclear of how accessible
remaining source and amount of resource could be available.
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.
Currently, Port Graham residents heat their homes and community buildings with expensive diesel oil that
must be barged in which is then sold through the Port Graham Corporation. Heat is generated individually
by home based hot water boilers; a similar arrangement produces heat for the community buildings under
consideration for this project.
Age and efficiency of this equipment varies from home to home and building to building, maintenance is
dependent on itinerant service men, usually provided by the regional housing authority.
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.
There are two existing energy resources supplied to Port Graham and Nanwalek, Alaska. The first is the
single-phase 220-volt electrical power supplied by Homer Electrical Association. The second is the fuel
oil, number 2 diesel, supplied for home and community building heat except for the two schools that use
propane for heat. A brief description, discussion, and impact on these resources are discussed as follows:
Heat is currently supplied by fuel oil obtained by Port Graham Corporation and sold at cost with no
holding costs applied. Port Graham Corporation feels that this is a cost burden that they cannot sustain and
welcome this woody biomass CHP project in hopes that it will displace this burden.
Port Graham school is heated by propane that is barged into the communities. Left over fuel from the end
of a school year is vented into the atmosphere. The Kenai Peninsula Borough School District pays for the
propane and delivery to these two communities. The borough would need to be approached to see if they
would be willing to convert to biomass heat and/or power rather than trying to maintain the propane
system.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
The Port Graham Village Biomass Waste Heat Demonstration Project proposes to supply hot
water to several community buildings for heat. Existing systems for the buildings are individual
diesel fuel boilers heating hot water base board heat for each building. Proposed system will
displace use of diesel fuel for these buildings and thus reduce the amount of diesel fuel used in
the community. Port Graham Corporation over the past decade has supplied diesel fuel to the
community at cost by not adding a markup for-profit or inventory carrying costs. One unintended
consequence that would need to be monitored is the effect on diesel fuel costs per gallon as a
result of reduction in volume used in the community in regards to current fixed transportation
costs. One fixed transportation cost of note is the barging of the fuel from Homer, Alaska to Port
Graham that is significant and would not reduce because of less fuel hauled to Port Graham if this
project would reduce diesel fuel use because the barge company has a fixed price for delivery to
Port Graham. Also, reducing volume of fuel purchased could affect cost of fuel wholesale price
by fuel distributor. Both of these seeming benefits of using less diesel fuel could increase cost of
diesel fuel in the community by an unknown measure. Port Graham diesel fuel customers are cost
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sensitive given their overall level of prosperity and if such change to diesel fuel costs were to
occur would need to be monitored.
Port Graham energy customers would view use of biomass from two seemingly opposite points of
view. The common negative impact is the harvesting of wood because previous timber harvesting
by Port Graham Corporation using a clear-cut style harvest system has left a poor impression on
residents of Port Graham regarding use of biomass resources. The positive viewpoint includes the
creation of local jobs and use of local resources for the benefit of the community. Project
development and operation would need to educate, explain, and demonstrate benefits of the
project seeking support of energy customers and community members.
Project is designed to deliver heat to community buildings and would serve as a demonstration for
use of local biomass as an energy alternative. Residential energy customers that would be in
proximity of proposed project could, at their cost election, tie into the heat loop system. If some
or all of these potential residential customers were incorporated into the proposed project, they
could help reduce costs and be shown to benefit local hire and use of local resources. However, to
tie into the system would be an expense that most of these customers may not elect due to general
economic conditions of most of these potential energy customers.
Whereas the existing system would be displaced it would not be vacated all together, at least until
such time the new system is proven to be feasible both economically and practically. The existing
systems will be needed until such time as a back-up/failsafe due to the remoteness of the
community. The displaced system, although redundant, would make the community buildings and
homes safer. The diesel fired boiler system is compatible with a hot water heat loop system
because of the hot water base board heat used in these buildings require only a zone valve
adaptation. An additional zone valve would be installed to provide an automated system such that
the biomass based hot water system, if it were shut down or not maintaining sufficient heat, the
existing diesel fired system would back-up a building or resident’s heat needs.
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
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GARN WHS Features and Benefits
Features
• Integrated Combustion
• Non-Pressurized Thermal Storage
• Double Weld Construction
• Secondary Combustion (Gasification) Chamber
• 5 Pass Heat Exchanger
• Large Insulated Loading Door
• Double Lock Safety Handle
• Hot Water Return (HWR) Dispersion Tube
• Manway Access
• Induced Draft Fan
• Air Cooled Door
• Combustion Air Supplied from Outside
• 30 Years of Proven Technology
Benefits
• Safe and Certified to be Installed Indoors
• No Overnight Loading or Fire Required
• Long Life, Low Maintenance Construction
• Reduced Wood Use
• Low Emissions
• Easy to Load Fuel Chamber
• Cool to the Touch Loading Door
• No Smoke in Your Face when Reloading Fuel
• Easy Maintenance
• Simple Part Replacement
• Anodes with Water Treatment Minimize Corrosion
• Demonstrated Longevity
• Available Electric Backup
GARN WHS Design Schematic
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• Combustion air is drawn directly from outdoors through an internal air inlet tube (A) to the air distribution
collar (B). The outdoor air is preheated as it travels through the air inlet tube (A) and the air distribution
collar (B). This yields more efficient combustion.
• A compliant seal on the loading door (C) prevents room air from entering the combustion chamber (E). The
loading door is insulated to prevent heat loss and includes an air-cooled heat shield to minimize hot surfaces
near the user.
• Combustion air from the collar (B) flows through upper and lower nozzles (D) into the combustion chamber
(E).
• Additional air from the upper nozzle is mixed with hot gases from primary combustion before entering the
ceramic secondary combustion chamber (F).
• Within the ceramic chamber, smoke, creosote and particulates are burned in a very turbulent, horizontal
gasification process at temperatures near and above 2000 ºF.
• After exiting the secondary combustion chamber, the hot gases are drawn through a 5-pass tubular heat
exchanger (G) transferring their heat to the water in the tank.
• The cooled gases are then drawn into the Draft Inducer Fan (H) and pushed out of the exhaust pipe (I) at
temperatures less than 350 ºF.
GARN WHS Technical Specifications
Model WHS 1500 WHS 2000 WHS 3200
Width in Inches 72" 72" 86"
Height in Inches 77" 77" 93"
Overall Length in Inches 117" 141" 187"
Recommended wood Length 24"-32" 24"-32" 32"-48"
Approx. Weight Empty in Pounds 3200 3700 7500
Approx. Weight Filled in Pounds 15,400 19,000 34,500
Approx. Storage in Gallons 1,420 1,825 3,200
Firebox Length in Inches 41" 41" 50"
Firebox Diameter in Inches 25" 25" 40"
Btu's Stored (120°-200°) 920,000 1,272,000 2,064,000
Btu/hr Burn Rate* 350,000 425,000 925,000
Btu's/degree of Water Temp Rise 11,500 15,900 25,800
*Burn rate is based upon lab testing utilizing White Oak, 24 inch length, 25% moisture content fuel, and reloading once per
hour. Burn rate will vary with wood type, moisture content, size and reloading frequency. The burn rate IS NOT THE BTU
OUTPUT. The max output is approximately the burn rate multiplied by the efficiency which is 75% for all WHS 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.
Landownership will be maintained by the Port Graham Tribal Council and will not involve private landowners
for the Boiler Facility and the majority of the buildings included in this project. The Port Graham
Museum/HeadStart Center and Port Graham Corp Office is owned by the Corporation. Both have agreed that
there are no outstanding issues related to this project.
Port Graham Corporation timberlands would be the main supply for the biomass fuel resource. Port Graham
Corporation has indicated that they are willing to negotiate a fuel source agreement. Native allotment owners
would need to be approached regarding negotiating a fuel source agreement. Chugachmiut’s Realty and Forestry
Programs are charged with serving Native allotment owners in Port Graham and Nanwalek and will be asked to
provide assistance to these owners. Some may wish to participate and some may not wish to participate.
All landowners in the area will need to be provided more information prior to entering into negotiations. For
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willing landowners such as Port Graham Corporation, a biomass timber cruise will be conducted to more
accurately measure available woody biomass supply. Chugachmiut will conduct a similar biomass cruise on
willing biomass Native allotment lands. A biomass fuel source extraction plan is intended to be developed in
Phase III tasks that will be placed into a forest management plan for each landowner. For Native allotment
owners the forest management plan will be incorporated into one document. Once an accurate assessment of fuel
is done, the amount and location of the fuel source extraction plan will be presented to the landowners. Stumpage
price will also need to be negotiated and is explained in Section 4.1 of this RFA.
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
A list of possible permits needed and environmental concerns is supplied below.
• DEC emissions permit, if applicable. However, it is anticipated emissions will not be of an amount or
volume that would require a permit although a new emissions standard proposed by EPA may require
this permit.
• A Coastal Management Permit may be required, especially if effluent were to be run into Port Graham
Bay.
• U. S. Fish and Wildlife Permits for Taking of Endangered Species may not be required because nesting
sites are not located near the proposed site location.
• NEPA assessment is not required except for timber harvesting on Native Allotments. The NEPA
documentation is being completed on a programmatic level as part of the Native Allotment Forest
Management Plan (NA-FMP)
• The Alaska Forest Resources and Practices Act must be followed for timber harvesting operations greater
than 10 acres. This includes filling and detailed plan of operations (DOP) with Alaska Division of
Forestry and receiving their approval before beginning operations. It is not anticipated that harvesting
will be larger than 10 acres as a 7 acre harvest will provide more than enough fuel for one year of
operation
• Obtaining section 404 permits from Alaska Fish and Game for all stream crossings as part of timber
harvesting operations.
• Kenai Peninsula Borough would need to conduct a tax assessment of site chosen and project
development business.
• State of Alaska would require filing of a business license and declaration of the type of business
developed that would own and operate this independent biomass plant.
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
A preliminary National Environmental Protection Act (NEPA) assessment was made in the Port Graham biomass
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feasibility study. This proposal intends to include development of a more detailed NEPA assessment and
environmental operation plan for the development and operation of the biomass plant. For the issues outlined in
Section 4.3.4 Environmental, a description and discussion of how these will be addressed follows below.
• Habitat issues
o Currently no habitat issues are located within either preferred project site. If water withdrawals
are to occur from a stream, a Fish Habitat Permit must be obtained from Alaska Department of
Fish and Game. Any wastewater discharge will require permitting from the Alaska Department
of Environmental Conservation.
• Wetlands and other protected areas
o The project locations are not in any special habitat or wetlands locations and will be greater than
100 feet in distance from any wetlands so no additional permitting is needed. If the project site
were to fall within a wetland a section 404 permit from the US Army Corps of Engineers would
be required.
• Archaeological and historical resources
o There are no known archaeological and historical resources located on the project site but the
Alaska Costal management Program Standard 6 AAC 80.150 would apply to the project.
o Once development begins, if artifacts or other culture evidence is encountered during any phase
of the project work shall be stopped. The State historic Preservation Office and the Port Graham
Village Council would be notified. Only after documentation and appropriate mitigation
measures are approved would the project commence.
• Land development constraints
o The sitting and approval of major industrial facilities and related activities are subject to State
Standards 6 AAC 80.070(b).
o The site of the project lies within the Alaska Costal Management Zone and more specifically
within the Port Graham and Nanwalek AMSA. State Standards 6 AAC 80.040 would apply to
our project activities and the project must pass the Costal Consistency Review Process.
o A Kenai Peninsula Borough Floodplain Development Permit will be required if the project
location lies within the Port Graham mapped flood plane
o A State building permit will be required from the State Fire Marshal
• Aviation considerations
o The project location is near the current Port Graham Airport so air quality and building
specification will need to be within the Federal Aviation Administration’s regulations. The site
located at the end of the runway could not operate until the construction of the new airport is
completed. The other site is located 300 feet away from the current airport.
• Visual, aesthetics impacts
o The project location is in and near Port Graham so we do not anticipate any adverse visual or
aesthetic impacts except acceptance by community members. The location of the log sort yard
has been used, as a log‐sorting yard in the past so no further negative visual or aesthetic impacts
will occur. Emissions from the biomass facility could negatively affect visual or aesthetics in the
area but the project is required to meet Alaska State Code and EPA emissions requirements.
These regulations limit emission requirements will likely be met by the GARN technology and
not affect visual aesthetics. Therefore, we do not anticipate any negative visual or aesthetic
impacts from the project.
• 18 AAC 50.010. Ambient Air Quality Standards
• 18 AAC 50.015. Air Quality Designations, Classifications, and Control Regions
• 18 AAC 50.055. Industrial Processes and Fuel‐Burning Equipment
• 18 AAC 50.075. Wood‐Fired Heating Device Visible Emission Standards
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
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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
See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section.
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.)
Operational and Maintenance costs during this demonstration project are expected to be minimal.
Cutting, hauling and stoking the boiler are the primary operating costs associated with this project.
Maintenance will be also at a minimum due to these GARN boilers will be brand new and covered
under the manufacturers warranty for the length of the demonstration period.
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
At this point there is no need for a power purchase/sale agreement. As part of this project is to explore the
eventuality of creating a Tribal Utility Company to maintain and operate the new system and oversee the
expansion of this project to the residents of Port Graham, Heat Purchase Agreement will be developed in
accordance with regulatory requirements governing rural utilities in Alaska.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in evaluating the
project.
Please find the Project Cost/Benefit Worksheet attached to this application. We have also included an excerpt
from The Potential For Biomass District Energy Production in Chugachmiut Communities, conducted in 2007 by
the Energy & Environmental Research Center of the University of North Dakota. A 7Mb copy of the final report
has been included in the electronic CD version of this application.
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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
See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section.
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
Sustainability is the core rationale for Port Graham’s drive to plan, develop and operate this proposed Port
Graham Village Biomass Waste Heat facility. Sustainability for its own community and through sharing their
success with its neighboring communities. In order for the community to be sustainable, the Port Graham Village
Biomass Waste Heat Demonstration Project too must be sustainable. Listed here are Port Graham’s plans for a
sustainable Biomass CHP facility.
Port Graham Tribal Council plans to develop a separate entity to own and operate this biomass independent heat
producer. Working with the finance team, we will determine within six months if this entity should be a non or
for profit. If the independent entity is a for-profit organization, it would then be able to take advantage of any tax
credits available and use depreciation that may make developing this project more economically viable. If grant
funding were not available for down payment of the project, then using a combined relationship of a tax credit
investor along with a not-for-profit business entity may make better financial sense. Such arrangements allow for
what is called a “flip” of ownership, where the entity who has been taking advantage of the tax benefits ends, and
then sells and turns over the operation to a long-term entity to own and operate, which would be an entity formed
and owned by Port Graham Tribal Council.
Finance of the maintenance and operations for the life of the project would be through collection of fees from
Port Graham consumers.
Operational issues that could arise include operation of the technology, personnel trained and hired for the
operation and fuel source production process, fuel source supply issues, cost issues related to inflation,
permitting, and compliance issues. Technology issues are those that shut down or reduce the production of the
power intended to be produced because of mechanical or electronic breakdowns or dysfunctions that reduce
operating efficiencies. Personnel trained and hired to operate the biomass system need to develop procedural
systems that ensure maintenance and operations function efficiently. Retaining such personnel could be an
ongoing issue that may require training additional potential employees for absences and turnover for the life of
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the project. The purpose of fuel source agreements with landowners is to ensure a sustainable supply of biomass
fuel that also recognizes that the landowners should receive increased stumpage fees over time to keep up with
inflation. If Port Graham Corporation, for example, feels that they have a higher and better use for their woody
biomass, they may wish to change or back out of a long-term agreement, which would be very problematic for
the continued operation of the project. Inflation cost issues relate to borough taxation, labor cost price increases,
maintenance and repair costs, and other costs related to cost inflation over the life of the project. Regulatory
compliance and permitting issues could change over the period of the project that may require upgrades to the
technology to meet these requirements. Fuel source production may experience changes in requirements that may
drive up the cost of production. Each of these issues needs to be planned for and contingency responses
developed to ensure continued successful operation.
Port Graham Tribal Council will ensure its utility entity will report annually it savings and benefits to its
customers, stakeholders, and to the council.
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.
Port Graham’s proposal to the Alaska Energy Authority has methodically identified steps to successfully
develop a Port Graham Village Biomass Waste Heat facility. Port Graham, along with Chugachmiut, has
been taking steps on this project since 2005 when it developed its initial Integrated Resource Management
Plan5 (IRMP) for the U. S. Bureau of Indian Affairs. The IRMP included development of a renewable
biomass development project as a priority development. After BIA’s review of the IRMP and having
reviewed the U. S. Department of Energy feasibility plan for biomass power production (described in the
next paragraph), the Office of Indian Energy and Economic Development has tentatively offered a loan
guarantee for a larger project of this type. This loan guarantee component is critically needed to leverage
future AEA grant funding to complete development of this project once the demonstration project has
proven successful. Following are the major efforts undertaken by Port Graham to advance the Port
Graham Village Biomass Waste Heat Demonstration Project.
A feasibility study that included a resource assessment was completed July 2007 through funding from U.
S. Department of Energy (DoE) Tribal Energy Program titled The Potential for Biomass District Energy
Production in Port Graham, Alaska feasibility study. This document is included in the CD portion of this
RFA. This Port Graham Biomass CHP Project remains on DoE’s list of projects eligible for development
assistance since the feasibility study was funded by DoE.
Office of Indian Energy and Economic Development funded the Port Graham Capability and Capacity
Assessment to Operate a Tribal Utility grant to conduct an assessment of capacity and capability of the
Port Graham Village Council to develop, staff, and manage a biomass utility business. This assessment
was completed September 30, 2009, and a final report will be submitted in late November 2009. The
Council currently plans to develop a tribally owned for-profit entity to operate the biomass CHP facility.
They may seek an investment / operating partner to capitalize on available tax incentives if a non-profit
operating entity is formed.
Chugachmiut funded a financial feasibility study through T. P. Roche Company for this biomass CHP
5 Integrated Natural Resource Management Plan for Nanwalek and Port Graham, ASCG Incorporate
November 2006 and Integrated Natural Resource Management Plan for Nanwalek and Port Graham
Phase II, Margaret King and Associates, July 2009.
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project proposal to assess financial feasibility, engineering design, technology selection, and fuel source
extraction at a more detailed level. A conceptual design for the biomass power generating facility was
developed through T. P. Roche by rem Engineer’s Doug Latulippe. Tom Roche developed the financial
feasibility study shown in Section 2.6 Project Budget Summary. Charles Nash and Chugachmiut’s Forester
Nathan Lojewski and Enterprise Director Charles Sink used the Port Graham Biomass Feasibility Study
and data that Chugachmiut already retains to make the fuel source supply assessments and fuel extraction
cost information.
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.
Included in this RFA are copies of letters-of-support from the following entities:
1. Port Graham Village Council Resolution 10-30
2. Port Graham Corporation letter-of-intent to reach a fuel source supply agreement
3. Chugachmiut letter of support Port Graham Village Council development project
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 – GrantBudget3.doc
Port Graham Village Council (Council) intends to use a combination of sources to finally bring this
project to reality. Ever since the completion of The Potential for Biomass District Energy Production in
Chugachmiut Communities study completed in 2007 the Council has worked toward this goal, developing
relationships with several entities both public and private, please refer to the attached letters of support
and commitment.
The Council requests the following funds from the listed entities:
Alaska Energy Authority $697,475
Dept of Energy (EECBG) $39,700
In-kind committed funds include:
Chugachmiut $78,430
Port Graham Village Council $30,200
Total Project Costs: $845,805
Direct Labor & Benefits - Port Graham Village Council administrative staff will provide the primary
interface with AEA and all other parties to this project. The three Port Graham staff members associated
with this project will devote 33% of their time to this project from start to finish, fringe benefits are
factored in at 35%. Resumes for all three have been included as part of this application.
• Pat Norman, First Chief
• Francis Norman, Tribal Administrator
• Dana McMullen, Tribal Bookkeeper
This is a large project for Port Graham and will require a large percentage of staff time to accomplish.
Additional funding has been requested under the Contractual Services category for a firm to provide
Project Accounting, training for the Port Graham staff in this area will be included in the scope of work
when this service is solicited, thereby providing Port Graham staff with the ability to sustain this effort
long after this project has been completed.
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The Council will also rely upon the proven relationship with Chugachmiut, Inc. to provide technical
assistance throughout this project either through general guidance related to administration of the project;
i.e. report writing and solicitation of consultants and contractors as well as more technically complex
activities such as negotiating loan agreements, permitting and environmental reporting to name a few of
the areas where Chugachmiut staff expertise will be required. It is the intent of the Council to contract
with Chugachmiut to provide this more specific technical assistance where required to meet project
milestones as addressed in this application, such as intermediary support in finalizing the loan agreement
between the lending institution and the Port Graham Village Council prior to the completion of Phase III.
Chugachmiut staff involved with this project will include:
• Charlie Sink, Director, Enterprise and Trust Division
• Nathan Lojewski, Chugachmiut Forestry Manager
• Elmer Moonin, Chugachmiut Project Assistant
It is estimated that, on average, 10% of their time will be spent on this project, from beginning to end.
Chugachmiut staff has a vested interest in seeing this project completed. Charlie Sink has been involved
with this project for over 4 years since the first feasibility study grant was written. Chugachmiut fringe
benefits are figured in at 36%.
Travel & Per Diem - Travel costs are illustrated on the spreadsheet attached to this application. Whereas
many of the meetings will be conducted via telephone between Port Graham staff, Chugachmiut staff and
out of state consultants, there will be a necessity to conduct several meetings in person. The Travel table
shows the number of trips, destination and length in travel status for each traveler. Air fare is based on
current web searches utilizing Travelocity.com and Expedia.com; lodging and per diem costs are based on
published federal rates for the locale.
Equipment - Equipment proposed for this project has been discussed at length throughout this
application. The costs associated with the particular equipment are detailed on the Project Costs
spreadsheet. Only equipment recognized as the standard in this area of power generation has been
considered. Throughout the discussion of this project, brand names are used to represent the level at
which this project wishes to reflect, once the proper technology has been identified, competitive
solicitations will be issued.
Materials & Supplies – The amount requested under this category are necessary to manage a project of
this complexity and are further detailed as sub-categories on the Budget worksheet.
Contractual Services – This category represents the level of expertise Port Graham wishes to bring to
this project. This type project is relatively new to Alaska and therefore experts in this field will be
required to provide the required project services as have been discussed within this document.
A detailed project cost assessment has recently been completed using a contractor, T. P. Roche Company,
whose team includes a biomass project development and financial consultant, a biomass plant design
engineer, and a biomass supply consulting forester. The design engineer provided estimates of capital
investment for the biomass unit, as well as start up, operation and maintenance costs. The forester
provided an estimate of fuel supply harvesting equipment and fuel supply extraction costs. The financial
consultant provided realistic economic projection for development and operation of the proposed project
using information provided by his team and from Port Graham Tribal Council and Chugachmiut. It is
expected the same level of expertise will be brought into this project.
As mentioned above under the category for Direct Labor, Port Graham will contract with an accounting
firm that is not only competent in the field of Project Accounting, but also have the ability to provide
training to Port Graham staff so they may take over these duties once the project has been completed.
Construction Services – This category addresses the actual preparation of the site, the construction of the
plant and the installation of the equipment. Please refer to the discussion for this category under Phase IV,
Task 4.
Other – The Other category addresses costs necessary to the success of this project such as working
capital and financing fees to prepare the documents that will secure the loan, which BIA has stated they
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will guarantee through that agency; Owner’s CM Insurance while the project is under construction; costs
associated with start-up and commissioning the power plant and finally costs to address miscellaneous
unseen costs and contingencies.
To the best of our abilities the costs represented herein and within the included worksheets are reasonable
for a project of this caliber. Application development staff is available to discuss further any issues that
require additional explanation.
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rem ENGINEERING, Inc.
rem ENGINEERING offers engineering expertise in cogeneration,
renewable power generation and energy conservation. Founded in
1992 by President Robert Mooney, rem is responsible for over
350,000 kWt and 65 MWe of combined heat and power generation
equipment worldwide. In addition to the wood products and steel
industries, rem has satisfied customers in the food, textiles, cement,
chemical and building supply industries as well as municipalities
and the federal government.
rem ENGINEERING, Inc. specializes in the custom design and project
management of “green” energy generation. We are proud of our
ability to consistently develop power projects for clients with
unusual operating parameters. Creativity and the willingness to put
forth the additional effort required to customize a generating system
to meet the individual needs of the user are hallmarks of rem
ENGINEERING.
A large portion of our work has been in the timber industry due to
the availability of low cost fuel. At Tradewinds of Virginia, rem
installed the first multi-stage condensing turbine at a sawmill. We
have engineered and installed pure power generating equipment as
well as co-generating equipment throughout the timber industry
including veneer plants, dry kiln plants, furniture and molding
plants and dimensional lumber mills.
In addition to our work in the timber industry, rem ENGINEERING
develops new technologies for the gasification of poultry litter
and related agricultural by-products. Our environmentally
friendly technology creates a clean alternative to fossil fuels.
rem’s patented technology converts low energy value and high
moisture biomass streams into thermal energy for steam
production and electrical generation. Our technology cleans the
environment through reduced NOx, SOx and green house gas
emissions.
Notable projects include: A 265 kW turbine genset installed at
North Country Hospital that received national recognition from the
DOE as the nation’s first wood fueled electricity generation system
installed at a hospital, multiple turbine co-generation systems
installed at US Steel facilities in Alabama and Pennsylvania used to
offset electrical demand, system design and equipment supply for
utility grade biomass power plants for The Southern Company and
Arizona Public Service, and energy conservation projects for Feed
the Children charity, a global non-profit organization
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“rem ENGINEERING provided conceptual design for the topping turbine
installed in 1996 at Fairfield Works. Bob Mooney was very competent
and innovative. His proposal for including a closed feedwater heater
provided the additional benefits that made this project financially
attractive. He was flexible and easy to work with and contributed
significantly to the success of the topping turbine project. rem has
recently been retained to work on several smaller energy projects at our
facility.”
Mr. Pittman Owen
Division Manager
Utilities, Shops & Services
U.S. Steel
Fairfield, Alabama 35064
205-783-2099
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A Strong Energy Portfolio for a Strong America. Energy efficiency and clean, renewable energy will mean a stronger economy, a cleaner
environment, and greater energy independence for America. Working with a wide array of state, community, industry, and university partners,
the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy invests in a diverse portfolio of energy technologies.
North Country Hospital Biomass Conversion
And Cogeneration Project
In 2002, the Vermont Community
Development Program funded a
feasibility study to evaluate the
best options for implementing a
renewable energy system to meet
the heat and power needs of the
North Country Hospital in
Vermont. The study
recommended that two gasifiers be
installed with two 200 horsepower,
150 psi Hurst boilers (one is
already in place) and two 150 kW
steam turbines. The Chiptec
system would gasify readily
available wood chips to produce
heat and power.
This Congressionally-mandated
project is funding the purchase and
installation of a Chiptec C-14
gasifier, one 500 hp, 300 psi Hurst
boiler, and one 265 kW steam
turbine to the hospital’s existing
heat and power generation
systems. The estimated cost
savings of the renewable system
over a conventional heat and
power generating system is
$248,000 per year at a chip
purchase price of $9 per ton.
R&D Pathway
The principle investigator will
purchase and install a Chiptec C-14
gasifier, one 500 hp, 300 psi Hurst
boiler, and one 265 kW steam
turbines. Also included in the project
are an addition to the existing boiler
room and a concrete bunker to accept
the wood chip inventory.
Chiptec C-Series Gasifier
Biomass Program
Benefits
• Convert wood chips into heat
and power
• Reduce energy costs for North
Country Hospital
Applications
This project will help the North
Country Hospital reduce its energy
costs by implementing a wood chip
gasification system.
Project Partners
North Country Hospital
Project Period
FY 2004 – FY 2005
For more information contact:
Jim Spaeth
DOE Golden Field Office
Jim.Spaeth@go.doe.gov
EERE Information Center
1-877-EERE-INF (1-877-337-3463)
Visit the Web site for the Office of the
Biomass Program (OBP) at
www.eere.energy.gov/biomass.html
September 2004
Integrated Biorefineries R&D
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RFA AEA11-005 Application Cost Worksheet 09-15-2010
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. Biomass – 120+ tons per year, this represents a
tiny fraction of the amount of sustainable supply
available from Village Corporation lands.
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 Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
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
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
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 12,010
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] N/A
iv. Coal [tons or MMBtu] N/A
v. Wood [cords, green tons, dry tons] N/A
vi. Other N/A
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.
53
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet 09-15-2010
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Biomass – 1.45 mmbtu
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 1.38 mmbtu
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood [cords, green tons, dry tons] 120 tons per year
iv. Other N/A
4. Project Cost
a) Total capital cost of new system $252,737
b) Development cost $196,100
c) Annual O&M cost of new system $15,000 (Labor and Maintenance)
d) Annual fuel cost $12,000
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity N/A
ii. Heat $12,010
iii. Transportation N/A
b) Current price of displaced fuel $57,646
c) Other economic benefits $27,000, per year in Port Graham
d) Alaska public benefits Reduce the state funded fuel equalization costs.
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.34 (assumes 8% discount rate)
Payback (years) 9 years
54
Port Graham Village Council Alternative Energy – Biomass Electric Generation ProjectRE-FundGrant FundsGranteed MatchingFundsSource of Matching Funds:Cash/In-kind/Federal Grants/Other State Grants/OtherTask 1 - Resource Supply Plan 12/31/2009 $ 16,122 $ 7,944 In-Kind/Loan $ 24,065.89 Task 2 - Energy System / Configuration Plan 4/30/2010 $ 28,170 $ 13,881 In-Kind/Loan $ 42,051.64 Task 3 - System Design 4/30/2010 $ 22,391 $ 11,034 In-Kind/Loan $ 33,424.85 Task 4 - Project Cost 6/30/2010 $ 25,099 $ 12,368 In-Kind/Loan $ 37,467.66 Task 5 - Power Purchase Agreements 6/30/2010 $ 41,392 $ 20,396 In-Kind/Loan $ 61,788.22 Task 6 - Site Agreements 5/31/2010 $ 14,245 $ 7,019 In-Kind/Loan $ 21,264.57 Task 7 - Permits 5/31/2010 $ 24,438 $ 12,042 In-Kind/Loan $ 36,480.84 Task 8 - Business and Operating Plan 6/30/2010 $ 41,392 $ 20,396 In-Kind/Loan $ 61,788.22 TOTALS $ 213,250 $ 105,082 $ 318,331.90 Direct Labor & Benefits $ 53,896 $ 28,852 In-Kind $ 82,748 Travel & Per Diem $ 33,204 $ 9,930 In-Kind $ 43,134 Equipment $ - $ - $ - Materials & Supplies $ 8,550 $ 3,600 Other - Loan $ 12,150 Contractual Services $ 117,600 $ - $ 117,600 Construction Services $ - $ - $ - Other $ - $ 62,700 $ 62,700 TOTALS $ 213,250 $ 105,082 $ 318,332 Budget Categories:Phase III55
Port Graham Village Council Alternative Energy – Biomass Electric Generation ProjectRE-FundGrant FundsGranteed MatchingFundsSource of Matching Funds:Cash/In-kind/Federal Grants/Other State Grants/OtherTask 1 - Resource Supply Plan 8/31/2011 $ 13,752 $ - $ 13,752.01 Task 2 - Existing Power Systems 9/30/2011 $ 32,976 $ - $ 32,975.76 Task 3 - EPC Contracts / Agreements 10/31/2010 $ 51,522 $ - $ 51,521.60 Task 4 - Proposed System Design 9/30/2011 $ 137,714 $ - Other - Loan $ 137,713.75 Task 5 - Staffing Plan 11/30/2011 $ 85,331 $ - $ 85,331.18 Task 6 - Project Cost 9/30/2011 $ 76,943 $ - $ 76,943.44 Task 7 - Environmental 12/31/2011 $ 11,525 $ 9,711 Other - Loan $ 21,235.07 Task 8 - Permits 12/31/2011 $ 14,236 $ - $ 14,236.23 Task 9 - Analysis And Recommendation 40908 $ 61,497 $ 29,132 Other - Loan $ 90,628.15 TOTALS $ 485,495 $ 38,842 $ 524,337.19 Direct Labor & Benefits $ 55,513 $ 29,718 In-Kind $ 85,230 Travel & Per Diem $ 27,001 $ 9,930 In-Kind $ 36,931 Equipment $ 147,190 $ - Other - Loan $ 147,190 Materials & Supplies $ 12,975 $ 3,600 Other - Loan $ 16,575 Contractual Services $ 111,000 $ - $ 111,000 Construction Services $ 105,547 $ - Other - Loan $ 105,547 Other $ 25,000 $ - $ 25,000 TOTALS $ 484,226 $ 43,248 $ 527,473 Budget Categories:Phase IV56
Port Graham Village Council Alternative Energy – Biomass Electric Generation ProjectRE-FundGrant FundsGranteed MatchingFundsSource of Matching Funds:Cash/In-kind/Federal Grants/Other State Grants/OtherPhase III 6/30/2010 $ 213,250 $ 105,082 in-kind/Loan $ 318,331.90 Phase IV 12/31/2011 $ 485,495 $ 38,842 in-kind/Loan $ 524,337.19 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTALS $ 698,745 $ 143,924 $ 842,669.09 Direct Labor & Benefits $ 109,408 $ 58,570 in-kind/Loan $ 167,978 Travel & Per Diem $ 60,205 $ 19,860 in-kind/Loan $ 80,065 Equipment $ 147,190 $ - in-kind/Loan $ 147,190 Materials & Supplies $ 21,525 $ 7,200 in-kind/Loan $ 28,725 Contractual Services $ 228,600 $ - $ 228,600 Construction Services $ 105,547 $ - in-kind/Loan $ 105,547 Other $ 25,000 $ 62,700 $ 87,700 TOTALS $ 697,475 $ 148,330 $ 845,805 Budget Categories:Combined Phases III and IV57
Cost
Request Match Request Match Request Match
Director, Chugachmiut Enterprise Div.52.00$ 195 -$ 10,140$ -$ 10,444$ -$ 20,584$ 20,584$
Forester, Chugachmiut Enterprise Div.31.00$ 195 -$ 6,045$ -$ 6,226$ -$ 12,271$ 12,271$
Admin. Asst, Chugachmiut Ent. Div 25.00$ 195 -$ 4,875$ -$ 5,021$ -$ 9,896$ 9,896$
Port Graham 1st Chief 15.30$ 644 9,846$ -$ 10,141$ -$ 19,986$ -$ 19,986$
Tribal Administrator 27.06$ 644 17,413$ -$ 17,936$ -$ 35,349$ -$ 35,349$
Tribal Bookkeeper 19.68$ 644 12,664$ -$ 13,044$ -$ 25,708$ -$ 25,708$
Total Salary 39,923$ 21,060$ 41,120$ 21,692$ 81,043$ 42,752$ 123,795$
Fringe Benefits - Chugachmiut 37%-$ 7,792$ -$ 8,026$ -$ 15,818$ 15,818$
Fringe Benefits - Port Graham 35%13,973$ -$ 14,392$ -$ 28,365$ -$ 28,365$
Total Salary and Benefits 53,896$ 28,852$ 55,513$ 29,718$ 109,408$ 58,570$ 167,978$
Travel:
Port Graham Staff to Anchorage 4,608$ -$ 4,608$ -$ 9,216$ -$ 9,216$
Chugachmiut Staff to Port Graham -$ 9,930$ -$ 9,930$ -$ 19,860$ 19,860$
Consultant Travel to Port Graham 28,596$ -$ 22,393$ -$ 50,989$ -$ 50,989$
Subtotal Travel 33,204$ 9,930$ 27,001$ 9,930$ 60,205$ 19,860$ 80,065$
Equipment:
GARN Boilers -$ -$ 79,990$ -$ 79,990$ -$ 79,990$
Misc. Control Room and Equipment -$ -$ 3,750$ -$ 3,750$ -$ 3,750$
Start-up and Commissioning -$ -$ 8,000$ -$ 8,000$ -$ 8,000$
Installation and Balance of Plant -$ -$ 16,450$ -$ 16,450$ -$ 16,450$
Freight -$ -$ 39,000$ -$ 39,000$ -$ 39,000$
Subtotal Equipment:-$ -$ 147,190$ -$ 147,190$ -$ 147,190$
Materials & Supplies:
Office Supplies 1,800$ -$ 2,700$ -$ 4,500$ -$ 4,500$
Postage 100$ -$ 300$ -$ 400$ -$ 400$
Meeting Space -$ 3,600$ -$ 3,600$ -$ 7,200$ 7,200$
Office Space 3,000$ -$ 4,500$ -$ 7,500$ -$ 7,500$
Long-Distance Calls 1,200$ -$ 1,800$ -$ 3,000$ -$ 3,000$
Fax Phone 1,250$ -$ 1,875$ -$ 3,125$ -$ 3,125$
Internet Services 1,200$ -$ 1,800$ -$ 3,000$ -$ 3,000$
Conference Registration -$ -$ -$ -$ -$ -$ -$
Subtotal Materials & Supplies 8,550$ 3,600$ 12,975$ 3,600$ 21,525$ 7,200$ 28,725$
Contractual - Consultants
Project Consultants (Refer to attached
work sheet)91,600$ -$ 99,000$ -$ 190,600$ -$ 190,600$
Permits and Legal 14,000$ -$ 4,000$ -$ 18,000$ -$ 18,000$
A&E Construction Design 12,000$ -$ 8,000$ -$ 20,000$ -$ 20,000$
detail -$ -$ -$ -$ -$ -$ -$
Subtotal Consultants:117,600$ -$ 111,000$ -$ 228,600$ -$ 228,600$
Construction Services
Site Prep -$ -$ 2,500$ -$ 2,500$ -$ 2,500$
Buildings and Foundations -$ -$ 54,736$ -$ 54,736$ -$ 54,736$
Arctic Piping Distribution System -$ -$ 48,311$ -$ 48,311$ -$ 48,311$
Subtotal Construction Services:-$ -$ 105,547$ -$ 105,547$ -$ 105,547$
Other
Owner's CM/Insurance -$ -$ -$ -$ -$ -$ -$
Donation of Boiler Building -$ 23,000$ -$ -$ -$ 23,000$ 23,000$
Contract to update 2007 Feasibility Study -$ 39,700$ -$ -$ -$ 39,700$ 39,700$
Miscellaneous/Contingency -$ -$ 25,000$ -$ 25,000$ -$ 25,000$
Subtotal Other:-$ 62,700$ 25,000$ -$ 25,000$ 62,700$ 87,700$
TOTALS 213,250$ 105,082$ 484,226$ 43,248$ 697,475$ 148,330$ 845,805$
Total All Phases
Port Graham Village Council Budget
AEA11-005 Alternate Energy Program Phase III Phase IV
58
abcdefg abcdefgProject Related TravelPort Graham AdministrationPort Graham to Anchorage# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripProject Related TravelPort Graham AdministrationPort Graham to Anchorage# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripPat Norman, First Chief3 6 450$ 1,086$ 1 4,608$ Pat Norman, First Chief3 6 450$ 1,086$ 1 4,608$ Total Port Graham Travel - Phase III4,608$ Total Port Graham Travel - Phase IV4,608$ abcdefg abcdefgProject Related TravelChugachmiut AdministrationAnchorage to Port Graham# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripProject Related TravelChugachmiut AdministrationAnchorage to Port Graham# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripCharlie Sink, Technical Assistance6 3 450$ 543$ 1 5,958$ Charlie Sink, Technical Assistance6 3 450$ 543$ 1 5,958$ Nathan Lojewski, Forester2 3 450$ 543$ 1 1,986$ Nathan Lojewski, Forester2 3 450$ 543$ 1 1,986$ Elmer Moonin, Project Assistant2 3 450$ 543$ 1 1,986$ Elmer Moonin, Project Assistant2 3 450$ 543$ 1 1,986$ Total Chugachmiut Travel - Phase III9,930$ Total Chugachmiut Travel - Phase IV9,930$ abcdefg abcdefgConsultant Travel per trip Phase III# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripConsultant Travel per trip Phase IV# of Trips# of days in travel statusAir farePer Diem# of travelersTotal Travel/tripTom Roche Associates - Houston, TX5 6 806$ 1,086$ 2 18,920$ Tom Roche Associates - Houston, TX4 6 806$ 1,086$ 2 15,136$ Doug Latulippe - rem Engineering - Atlanta, G4 6 1,333$ 1,086$ 1 9,676$ Doug Latulippe - rem Engineering - Atlanta, G3 6 1,333$ 1,086$ 1 7,257$ Total Phase III Consultant Travel:28,596$ Total Phase IV Consultant Travel:22,393$ Port Graham Village Council Draft Budget for BIOMASSPhase III TravelPhase IV Travel59
Project Budget Table
Rate ($/HR) $175 $125 ($ - lump sum) $150 ($ - lump sum)
Phase III Activities Roche rem Eng.
Professional
services
Lending
Advisor
Project
Accounting
Task 1 - Resource Supply Plan 24 4 1,500$
Task 2 - System Design 16 60 12,000$ 1,500$
Task 3 - Project Cost 24 24 1,500$
Task 4 - Revenue Stream Agreements 32 16 1,500$
Task 5 - Site Agreements 32 20 1,500$
Task 6 - Permits 8 8 2,000$ 1,500$
Task 7 - Business and Operating Plan 40 24 -$ 48 1,500$
Total Hours 176 156 0 48 0 380
Total Dollars $30,800 $19,500 14,000$ $7,200 10,500$ 82,000$
Project Administration
Monthly Status Reporting/Administration/PM 32 32
Phase III - Total Admin Hours 32 32 0 64
Phase III - Total Admin Dollars $5,600 $4,000 $0 9,600$
Total Project Hours Phase III 208 188 - 48 444
Total Project Costs Phase III $36,400 $23,500 $14,000 $7,200 $10,500 91,600$
Phase IV Activities
Task 1 - Resource Supply Plan 0 0 2,000$
Task 2 - Verify and Update Projections and Efficiencies 12 12 2,000$
Task 3 - Existing Heating Systems Integration 8 60 2,000$
Task 4 - EPC Contracts / Agreements 12 40 2,000$
Task 5 - Prposed System Design 8 80 8,000$ 2,000$
Task 6 - Staffing Plan 8 8 2,000$
Task 7 - Project Cost 12 40 2,000$
Task 8 - Environmental 8 12 2,000$
Task 9 - Permits 12 12 -$ 2,000$
Task 10 - Analysis And Recommendation 40 40 2,000$
Total Hours 120 304 0 0 0 424
Total Dollars $21,000 $38,000 8,000$ -$ 20,000$ 87,000$
Project Administration
Monthly Status Reporting/Administration/PM 40 40
Phase IV - Total Hours 40 40 0 80
Phase IV - Total Dollars $7,000 $5,000 $0 12,000$
Total Project Hours Phase IV 160 344 - - - 504
Total Project Costs Phase IV $28,000 $43,000 $8,000 $0 $20,000 99,000$
Total Project Labor (Both Phases)
Total Hours 368 532 - 48 - 948
Total Dollars $64,400 $66,500 $22,000 $7,200 $30,500 190,600$
Consultant
Totals
60
Port Graham Biomass District Heating ProjectProject Schedule - Phase IIDurationNumberTask/MilestoneStart End (days) Jan Feb MarAprMayJunJulAugSep OctNovDec1 Resource Supply PlanMilestone: Project scoping and contractor solicitation2 Energy System DesignMilestone: Project scoping and contractor solicitationMilestone: Final system design3 Project CostMilestone: Engineers cost estimateMilestone: Project scoping and contractor solicitationMilestone: Updated economic and financial analysis4 Revenue Stream AgreementsMilestone: Heat sales agreement in place with approved rates5 Site AgreementsMilestone: Resolution of land use, right of way issues6 PermitsMilestone: Permit applicationMilestone: Permit approvalsMilestone: Final environmental assessment and mitigation plans7 Business and Operating PlanMilestone: Final business and operating planYEAR - 201161
Port Graham Biomass District Heating ProjectProject Schedule including Phase IVDurationNumberTask/MilestoneStart End (days) Jan Feb MarAprMay Jun JulAug Sep Oct NovDec1 Renewable Supply Plan2Verify and Update Projections and System Efficiency3 Existing Heating SystemCoordination and Integration with existing building system4 EPC Contracts/AgreementsMilestone: Completion of bid documentsMilestone: Contractor/Vendor selection and award5 Proposed System Design: Construction and CommissioningConstruction Phases Major Equipment DeliveredFuel Harvesting EquipmentGarn BoilerPumps/ValvesControls and SwitchgearHeat ExchangersArctic Pipe Site WorkMobilizationExcavation & BackfillFoundations Installation and ConstructionReceive & Set EquipmentStructural/Bldg ModificationsPiping/MechanicalElectrical including controls and monitoringInterconnection CommissionningEquipment TestingSystems Integration and TestingStart-UpTraining Punch ListMilestone: ConstructionMilestone: Integration and TestingMilestone: Decommissioning of Old System CompleteMilestone: Final Acceptance, Commissioning and Start-Up Complete6 Staffing PlanImplement training program7 Project Cost8 Environmental9 Permitting10 Analysis and RecommendationsMilestone: Operations ReportingYEAR - 201262
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