HomeMy WebLinkAboutLake and Penisula AEA Round IV Grant LPB Wood Boiler
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 12 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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 2 of 12 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Lake and Peninsula Borough
Type of Entity: Local Government - Borough
Mailing Address
P.O. Box 495
King Salmon, Alaska 99613
Physical Address
101 Jensen Road
King Salmon, AK 99613
Telephone
907-246-3421
Fax
907-246-6602
Email
manager@lakeandpen.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Lamar Cotten
Title
Borough Manager
Mailing Address
Same as above
Telephone
907-301-8737
Fax
907-246-6602
Email
manager@lakeandpen.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
x A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 3 of 12 7/21/2010
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)
Lake and Peninsula Borough Wood Boilers
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Wood boilers for community facilities in Igiugig, Illiamna, Kokhanok, and Port Alsworth.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind X Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Provide wood boilers for community facilities in Igiugig, Illiamna, Kokhanok, and Port
Alsworth. Wood boilers in these villages have been the subject of a detailed feasibility/design
study, which shows they are economically and technically feasible. The project would allow the
borough to advertise for a design/build RFP to construct these facilities, and to have the expertise
to evaluate potential designs and inspect finished construction. The competitive process would
ensure the best and most appropriate design. Community organizations with a record of
maintaining community facilities are supporting and have committed to use and maintain the
wood boilers. Landowners where the wood will be gathered also support the project.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 4 of 12 7/21/2010
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
The project would displace 10,045 gallons of fuel oil per year. At an average price of $6.50 per
gallon, this would benefit Borough residents a total of $65,292 per year. This is less than a 6-
year payback for the project as a whole.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipate d sources of funds, and the nature and source
of other contributions to the project.
The total project cost, including RFP evaluation and inspection, is $493,200. The Borough is
contributing 25% of the cost. Therefore, the Borough is requesting $369,900 in this grant. All
but $10,000 of the total project funds will go into construction.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $369,900
2.7.2 Other Funds to be provided (Project match) $123,300
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $493,200
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)
$493,200
2.7.5 Estimated Direct Financial Benefit (Savings) $65,292
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.)
Not quantifiable, but the
project will provide jobs
to cut wood in the
villages.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 12 7/21/2010
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.
Lamar Cotten, Borough Manager
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.)
RFP Issued – May 1, 2011
Contractor Selected (possibly subject to available funds) — June 1, 2011
Construction Begins July 1, 2011
Construction Finishes; Project Finalized: Fall 2011
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
See above.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
Project will be accomplished using Design/Build contractor selected by RFP. Thus, the expertise
will be determined in response to the RFP. The grant does include expertise that also will be
hired to evaluate the proposals and inspect the final construction.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
At the milestone dates provided in Section 3.2, a status report will be provided the Authority.
3.6 Project Risk
Discuss potential problems and how you would address them.
The major project risk is that the communities will not go out and cut the wood to use the
project. This has been addressed by selecting community groups with an ability and record to
follow-through on projects of this sort.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 6 of 12 7/21/2010
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The energy source is wood. Landowners with wood resource have provided letters of support for
this project. The only other realistic energy source for heat in these villages is fuel oil.
Alternatives have been analyzed in an energy study completed by Information Insights. Copies
available upon request.
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
The community facilities that will be served by the wood boiler all are heated by fuel oil boilers.
The boilers are a variety of ages and sizes.
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.
With respect to fuel oil, the existing energy system is to ship fuel either by air, or by barge over
the difficult-to-use road from Williamsport to Pile Bay, and then by barge over Lake Iliamna to
the communities. In the case of Port Alsworth, all fuel comes by air. The project will decrease
the transportation of fuel by air and water, decreasing the risk of fuel spill.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
This is a simple project. Fuel oil is used to heat community buildings. Less will be used. The
project will have the additional advantage of providing jobs in the villages to cut wood.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 7 of 12 7/21/2010
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
See design information from RBA Feasibility study.
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.
See attached letters of support for the community organization that owns the land on which the
boiler will sit, owns the facility that will be heated. See also attached letter of support from the
landowner from which the wood will be taken.
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
This is a simple project to provide wood boilers near existing facilities. The only permit required
is from the Fire Marshall. The wood cutting is generally from private land and is below the level
requiring a plan of operation approval from the Alaska Division of Forestry.
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 8 of 12 7/21/2010
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
None of these apply. They are in developed area of communities, near existing buildings. There
are no T&E species, no wetlands, etc. The only visual impact is smoke from the facility. Wood
boilers that are selected will meet EPA guidelines for air emissions.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Cost information comes from the RBA’s feasibility report, attached. With respect to grant
funding, applicant matching funds, etc. Please see cover letter.
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.)
The community organizations have agreed to pay people to cut the wood for the boilers and do
complete the minor amount of maintenance. Money for this work will come from the decreased
cost that the organizations would otherwise spend on fuel oil.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 12 7/21/2010
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
N/A
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
With respect to fuel displacement, the project expects to displace 10,045 gallons of fuel per year.
This amount to $200,900 gallons over the project’s 20-year life. At an average cost of $6.50, the
value of this displaced fuel is $65,292.50/yr or $1,305,850 over the project’s 10-year life.
There are also non-economic benefits of the project in that some of the value of displaced fuel oil
will be used to provide skills-appropriate jobs in the village, and provide revenue internal to the
village rather than to fuel suppliers in Anchorage. In addition, it will help insulate the village
from price variation in fuel oil prices.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 10 of 12 7/21/2010
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The main reason that a project of this type would fail is that a village fails to use it — stops cutting
wood. The Borough addresses this issue by involving community groups in the planning and
implementation of the project (i.e., involving them early and putting them on the RFP evaluation
committee), and ensuring that the benefits of the project go to the community organization that
will maintain it. In addition, the Borough selected the project will community input, chose projects
that will be supported by competent community organizations.
Other than the cost of paying someone to supply wood and feed the boiler, there should be no
significant operation cost for this project once installed.
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.
See cover letter.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 11 of 12 7/21/2010
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.
See attached letters of support.
SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
See cover letter.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 12 of 12 7/21/2010
SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.6.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name Lamar J Cotten
Signature
Title Lake and Peninsula Borough Manager
Date 9/15/2010